Plastic products maker Supreme Industries Ltd on Monday reported a 21.31 per cent decline in consolidated profit to Rs 245.72 crore for the quarter ended in December 2021.
The company had posted a net profit of Rs 312.28 crore during the October-December quarter of the previous fiscal, Supreme Industries Ltd said in a regulatory filing.
Its revenue from operations was up 5.49 per cent to Rs 1,945.11 crore during the quarter under review as against Rs 1,843.80 crore in the corresponding period of the previous fiscal.
Supreme Industries total expenses were at Rs 1,685.16 crore, up 12.39 per cent in Q3/FY 2021-22 as against Rs 1,499.35 crore in the year-ago quarter.
Commenting on the financial results, Supreme Industries Managing Director M P Taparia said, “The Polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by Rs 25 i.e. 15% per kg. The prices of other polymers also swung wildly during the quarter.
Such a swing in the prices has affected overall demand for the products. The products, where demand was driven strongly by distributors have seen large scale destocking in the quarter.” Due to the extended rainfall period in the quarter, the demand from agriculture and infrastructure was also deferred. Due to supply chain disruption, the company had suffered degrowth in CPVC pipe system, he added.
“The overall turnover of value added products decreased to Rs 665 crores during the current 3rd quarter as compared to Rs 758 crores in the corresponding period of previous year resulting Degrowth about 12 per cent,” the company said.
Shares of Supreme Industries Ltd on Monday settled at Rs 2,130.30 on BSE, down 4.84 per cent from the previous close.