Supreme Industries closes 2% higher after 16% rise in Q4 revenue, board recommends final dividend of ₹22 per share

Shares of Supreme Industries closed over 2% higher on Friday after the company reported a 16% year-on-year (YoY) rise in its total consolidated income at ₹3,025.98 crore for the fourth quarter.

Operating profit for the quarter rose 0.37% to ₹531.36 crore while net profit fell 1.28% to ₹354.82 crore. The board of directors recommended a final dividend of ₹22 per share.

The company said it has a total cash surplus of ₹1,178 crore as of March 31, 2024, as against the cash surplus of ₹738 crore as of March 31, 2023. Supreme Industries also pointed out it has plans to commit capex of about ₹1,500 crore including carry forward commitments of ₹496 crore at the beginning of the year.

The capex would be used to put up a state-of-the-art manufacturing facility at Malanpur in Madhya Pradesh to manufacture varieties of industrial valves and ball valves which will likely go into production during the second quarter of the current year.

The firm is also looking to put up a state-of-the-art manufacturing facility in Kanpur to manufacture unplasticized Polyvinyl Chloride (uPVC) profiles, windows, and doors. The first phase of production is planned to commence by June 2025.

MP Taparia, Managing Director of Supreme Industries said the company’s entire range of plastics products are poised to grow this year. “The company is also taking several initiatives to boost the export of plastics products out of its product range. The response to this initiative is encouraging.

To meet the growth in demand for piping products company has initiated steps not only to do brownfield expansion at existing manufacturing sites but also to put up new plants near Patna and Vijayawada,” he said. The company has 36 plastic piping Systems in the division and plans to add another 5 new systems, he added.

Shares of the company have lost 1.67% since the beginning of the year. The stock has gained over 66% in the last one year.