Supreme Industries Ltd posts Rs. 174.95 crore consolidated PAT in Q2

SUPREME INDUSTRIES LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.1374.86 crores during the period ended September 30, 2020 as compared to Rs.1054.17 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.174.95 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.40.53 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.13.77 for the period ended September 30, 2020 as compared to Rs.3.19 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 1374.86 crs	₹ 1054.17 crs	30.42%
Net Profit	₹ 174.95 crs	₹ 40.53 crs	331.66%
EPS	₹ 13.77	₹ 3.19	331.66%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.1374.86 crores during the period ended September 30, 2020 as compared to Rs.1271.44 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.174.95 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.139.57 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.13.77 for the period ended September 30, 2020 as compared to Rs.10.99 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 1374.86 crs	₹ 1271.44 crs	8.13%
Net Profit	₹ 174.95 crs	₹ 139.57 crs	25.35%
EPS	₹ 13.77	₹ 10.99	25.3%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.2429.03 crores during the 6 months period ended September 30, 2020 as compared to Rs.2708.30 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.215.48 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.226.71 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.16.96 for the 6 months period ended September 30, 2020 as compared to Rs.17.85 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 2429.03 crs	₹ 2708.30 crs	-10.31%
Net Profit	₹ 215.48 crs	₹ 226.71 crs	-4.95%
EPS	₹ 16.96	₹17.85	-4.99%

Mr. M. P. Taparia, Managing Director, The Supreme Industries Limited, said: The negative impact of pandemic on the business has started withering down. After July, the intermittent lockdowns were mostly not extended in many parts of the Country and opening up of economy has progressed. This has broadened business prospects of the Company since August in all its segments.

By judicious product mix and cost control, the Company was able to achieve significant increase in its' profit, in the second quarter. In spite of weak working of the first quarter, the Company could attain higher profit in the First half of the year compared to corresponding period of previous year.

The harvesting of Kharif crops are moving briskly. The crop output is expected to be better than last year. With most of the water dams are close to full capacity, it is expected that Rabi crop sowing may be in a larger acerage as compared to last year. With higher MSP declared by Government and various other supports provided, the rural area economy and Tier III and IV Towns economy is expected to do better than last year.

With the return of migrant workers on most of the construction sites, supported with lower rate of interest and lower rates of stamp duty in some States, along with drop in prices of residential homes, the demand of new homes has picked pace throughout the Country. Consequently, the Company's Pipe System for Housing is also seeing better demand from September onwards.

Packaging segment is witnessing good demand supported by many new applications/SKUs targeting agriculture sector and customized requirements. Material Handling Products are being extensively used for logistic solutions, Fruits & Vegetable and Fisheries segments along with revival of demand for Industrial Applications.

Raw material prices, except PVC resin prices, remain range bound. PVC prices, due to tight availability are still making an upward march. It is expected that with the starting of plants in USA and other countries coupled with lower winter demand for housing in USA, Europe, China and other parts of the World, prices may start softening from January 2021 onwards.

The Company's investment plans are going as envisaged. It is expected that Orissa land deal may fructify by November. Company is exploring to put up new plants in other States, for which land negotiations are progressing in Assam and Tamilnadu.

Shares of SUPREME INDUSTRIES LTD. was last trading in BSE at Rs.1494 as compared to the previous close of Rs. 1421.25. The total number of shares traded during the day was 2823 in over 746 trades.

The stock hit an intraday high of Rs. 1495 and intraday low of 1416.6. The net turnover during the day was Rs. 4138009.

Source : Equity Bulls

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