Supreme Industries net up 39%; 70% dividend recommended

Our Corporate Bureau
02 September 2003

Mumbai: Supreme Industries Ltd, India's largest plastics processor, continues its good performance by recording a 39-per cent growth in net profits for the year ended 30 June 2003.

The turnover of the company during this year was Rs 796.22 crore as against Rs 678.05 crore in the previous year. This figure is of the new entity after the merger of Siltap Chemicals Ltd with the Supreme Industries.

The company as a merged entity has 19 manufacturing units across the country. The gross profit before depreciation and exceptional items was at Rs. 55.03 crore against a gross profit of Rs 45.52 crore in the previous year. The provision for depreciation was Rs 36.48 crore as against Rs 33.50 crore for the previous year.

The board of directors has recommended a dividend of 70 per cent on equity shares on an increased capital of Rs 13.06 crore against 60 per cent on previous years'' share capital of Rs 10.01 crore, involving an outflow of Rs 10.31 crore, including corporate dividend tax of Rs 1.17 crore.

Supreme Industries converted 91,913 metric tones of plastics in the year ended 30 June 2003 as against 86,947 metric tones in the previous year.

Improved productivity, cost-cutting initiatives, prudent working capital management along with the consolidation of Pondy units and increase in sales of speciality products have enabled the company to improve its performance. This is in spite of severe pressure on margins, due to steep increase of raw material prices. The company has reduced its interest bearing liabilities by Rs 35 crore in the year and aims to further reduce it substantially during the current year.