Supreme Industries Profits, Dividends, and Sustainability! #investing #investor #investment

Based on the review of the annual report for Supreme Industries Limited, here are key points for investment consideration:

Financial Performance:
Revenue: The company achieved a total income of ₹10,251.98 crore in FY 2023-24, which is a significant increase compared to ₹9,283.35 crore in the previous year.
Profitability: Profit Before Tax (PBT) stood at ₹1,351.83 crore, while Profit After Tax (PAT) was ₹1,016.17 crore, showing solid profitability growth compared to the previous year’s figures of ₹1,010.43 crore (PBT) and ₹764.47 crore (PAT).
Dividend: Supreme Industries declared a dividend of 1500%, translating to ₹30 per share, demonstrating strong shareholder returns.
Operational Highlights:
The company sold 639,701 MT of plastic goods, a 26% volume growth compared to the previous year.
Net product turnover increased by 11%, showing stable demand and market presence.
Credit Rating:
CRISIL Rating: The company enjoys strong ratings, with CRISIL assigning a long-term rating of AA+/Stable and a short-term rating of A1+, reflecting its financial health and stability.
Sustainability and Growth:
Supreme Industries is making significant investments in renewable energy and sustainability initiatives, including an expansion in solar energy capacity to 34 MW.
The company is also pursuing a long-term net-zero emission target, which aligns with global environmental goals, making it a forward-thinking investment in terms of sustainability.
Dividend and Shareholder Return:
The dividend distribution policy reflects the company’s commitment to delivering value to shareholders, further bolstered by strong profits and cash flow.
Risk Factors:
The company’s success is highly tied to the demand for plastic products, and any adverse regulatory changes or material cost inflation could impact profitability.
Conclusion:
Supreme Industries Ltd. shows robust financial performance, strong growth prospects, and a commitment to sustainability. However, prospective investors should consider the market’s reliance on raw material prices and any potential environmental regulations impacting plastic products.