Earnings Outlook
Soft demand, high base to drag down Supreme Ind Jan-Mar PAT
This story was originally published at 08:53 IST on 23 April 2025
Register to read our real-time news.Informist, Wednesday, Apr. 23, 2025
By Arya S. Biju
MUMBAI – Plastic manufacturing and processing company Supreme Industries Ltd. is expected to report a double-digit decline in its net profit for the third consecutive quarter in Jan-Mar, dragged down by soft demand and greater competition. A high base from the year-ago quarter is also seen impacting the company's Jan-Mar earnings. On the other hand, the company's top line is expected to increase on a year-on-year basis, though only in low single digits.
The company's consolidated net profit for the quarter is expected to plunge over 30% on year to INR 2.48 billion, according to the average of the estimates from seven brokerage firms. HDFC Securities Ltd. has the highest estimate for consolidated net profit at INR 3.06 billion, while Equirus Securities Pvt. Ltd. has the lowest of INR 2.05 billion.
The company's consolidated revenue for the quarter is expected to grow 2.7% to INR 30.89 billion, according to an average of estimates from seven brokerage firms. Anand Rathi Share and Stock Brokers Ltd. gave the highest estimate for the company's consolidated revenue at INR 32.71 billion, whereas Equirus Securities gave the lowest estimate at INR 30.22 billion. On a sequential basis, the company's consolidated net profit is seen rising over 32%, and its consolidated revenue is seen up over 23%.
Brokerage Nuvama Wealth Management Ltd. expects the company's top line to remain flat on year, as the 5% on-year rise in volumes is expected to be offset by a 5% on-year fall in piping realisations. Equirus Securities, however, expects volumes to remain flat on year due to a high base, weak demand due to a correction in polyvinyl chloride resin prices, and muted demand for infrastructure projects. In January, the company had set a target to reach a capacity of 900,000 tonnes a year by the end of 2024-25 (Apr-Mar).
Overall demand in the building materials sector remained largely stable in Jan-Mar, as companies stayed cautious despite healthy real estate activity, Elara Capital said in an earnings preview note. Seasonality in construction, construction bans in some key markets, and labour shortages also impacted demand in the quarter, Equirus said.
As in the case of net profit, the company's earnings before interest, tax, depreciation, and amortisation is also expected to see an on-year decline for the third consecutive quarter. The company is expected to post an over 18% on-year decline in its consolidated EBITDA at INR 4.01 billion, according to the average of the estimates of six brokerages.
Nuvama expects the company's EBITDA margin to drop to 12.3% in Jan-Mar due to "higher agricultural pipes share". Equirus expects revenue and EBITDA margin from the company's other segments excluding pipes to remain muted in Jan-Mar.
Supreme Industries will announce its Jan-Mar earnings on Thursday. Investors will watch out for management commentary on plans for capacity expansion and new product launches, IDBI Capital Markets & Securities said. The management's comments on overall demand in the near term and outlook on demand for agricultural pipes will also be monitored, the brokerage said.
On Tuesday, shares of the company closed at INR 3,522. 20 on the National Stock Exchange, up 0.2%. The stock has fallen over 12% since the announcement of its December quarter earnings on Jan. 20 and nearly 45% from its all-time high of INR 6,460 hit on Jun. 12.
Following are the Jan-Mar earnings estimates for Supreme Industries based on reports from seven brokerage firms in descending order of the estimate of net profit:
| Broking firm | Net sales | Net profit | EBITDA |
| ----------------(in INR million)---------------- | |||
| HDFC Securities Ltd. | 30,414.00 | 3,062.00 | 4,563.00 |
| Elara Securities (India) Pvt. Ltd. | 30,556.00 | 2,925.00 | 4,512.00 |
| Prabhudas Lilladher Pvt. Ltd. | 31,044.00 | 2,520.00 | 3,805.00 |
| Nuvama Wealth Management Ltd. | 30,231.00 | 2,452.00 | 3,730.00 |
| IDBI Capital Market Services Ltd. | 31,067.00 | 2,236.00 | 3,844.00 |
| Anand Rathi Share and Stock Brokers Ltd. | 32,712.00 | 2,104.00 | -- |
| Equirus Securities Pvt. Ltd. | 30,218.00 | 2,053.00 | 3,623.00 |
| Average | 30,891.71 | 2,478.86 | 4,012.83 |
End
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
