Country's one of the largest plastic processors, Supreme Industries, announced on Thursday in their first quarter results that the company's net profit grew by 20.03 per cent to Rs 290.10 crore as compared to Rs 241.68 crore last year. On revenue front, the company registered a growth of 16.26 per cent to Rs 3,403.99 crores.
Talking to The Pioneer, Supreme Industry's MD, MP Taparia talked about company's performance and future growth prospects. Talking about FY13 results he said, “The Company grew by 15 per cent in terms of volumes and the product value grew by 18 per cent. Our operating margins also increased by 15.92 per cent.”
In terms of debt, the management feels the company is well placed and doesn't feel there is any pressure on the balance sheet due to it. He further added, “We are very well placed in terms of debt which is Rs 467 crore as on June 30, 2013.”
The company had already invested a sum of Rs 375 crore in the last financial year towards capacity expansion and this year again they plan to spend another Rs 250 crore on it. He further added, “We plan to spend Rs 250 crore for setting up a Plastic Complex at Kharagpur in West Bengal. The complex will be built on a 52 acre area for which we already have acquired the land. We are just awaiting clearances from the West Bengal Government and feel the plant will get into production by next financial year.” He further added that the main purpose of this facility is to cater to the demands from the eastern States.
Supreme Industry plans to fund this capacity expansion through internal funding as the company has enough cash reserves from the sale of land in the previous quarters. Going forward, the company still has property worth Rs 250 crore which they plan to monetize. “We plan to sell assets which are worth Rs 250 crore and this sale will be done in phases as and when we get good offers.”
Talking about the future of the company, MP Taparia feels the growth momentum will continue in the coming years as well and hopes that the company's net turnover will grow by 15 per cent in the year. “We expect our operating margins to improve by 14 to 15 per cent and expect the net turnover to touch Rs 3,900 marks in this year.”