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Supreme Industries fourth quarter consolidated sales jumped 15 percent to Rs 1053.68 crore from Rs 920.35 crore in the same quarter previous year. Net profit surged by more than 14 percent from Rs 95.16 crore to Rs 108.93 crore in the same period.
Operating profit margins of the company stood at 18.97 percent compared to 19.26 percent, a year ago. Employee cost jumped 15 percent in this quarter to Rs 40.01 crore.
” Supreme Industries may clock revenues of Rs 3900 crore in FY14. Operating margins are likely to be in the range of 14 to 15 percent,” MP Taparia, managing director at Supreme Industries told moneycontrol.com in an exclusive interview.
The company received Rs 16 crore from sale of 10,950 sq. ft. and another Rs 37 crore it will receive from sale of 25656 sq. ft. Out of Rs 37 crore, Supreme has already received Rs 9 crore and the remaining Rs 28 crore by October ’13 as agreed with the buyer.
“We still have 1.6 lakh sq. ft. saleable land and at current price, the value of that land is Rs 250 crore. We will sell it only when we get the right price,” he added.
The company’s total consolidated debt stands at Rs 467 crore by end of FY13.
Value added products
“The share of value added products to total revenues went up from 31.5 percent to 31.7 percent in FY13. We aim to increase the share of value added products to 35 percent in the next two to three years,” said Taparia.
Supreme Petrochem performance
Supreme Petrochem Ltd ‘s a subsidiary of Supreme Industries reported over three-fold jump in its net profit to Rs 13 crore year-on-year on improved demand in domestic market Sales of the company also rose 26 percent to Rs 762.19 crore.
Taparia expressed concern on the low tariff barrier and free trade agreement (FTA) with various countries due to which ASEAN countries have the opportunity for cheaper imports into the country.
But the industry body is keeping a close watch on such imports and would definitely take appropriate action, if situation warrants so, he added.