Earnings Review
Supreme Ind Jan-Mar consol PAT dn 17% on yr, but beats view
This story was originally published at 16:56 IST on 24 April 2025
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--Supreme Ind Jan-Mar consol net profit INR 2.94 bln
--Analysts saw Supreme Ind Jan-Mar consol net profit INR 2.48 bln
--Supreme Ind Jan-Mar consol net profit INR 2.94 bln vs INR 3.55 bln yr ago
--Supreme Ind Jan-Mar consol revenue INR 30.27 bln vs INR 30.08 bln year ago
--Supreme Ind to pay INR 24 per share final dividend
--Supreme Ind FY25 consol net profit INR 9.61 bln vs INR 10.70 bln year ago
--Supreme Ind FY25 consol revenue INR 104.46 bln vs INR 101.34 bln year ago
--Supreme Ind sold 199,865 tn plastic goods in Jan-Mar vs 195,369 tn yr ago
--Supreme Ind Jan-Mar plastic goods sales INR 29.59 bln vs INR 29.79 bln
--Supreme Ind Jan-Mar plastic pipe sales INR 20.74 bln vs INR 21.53 bln
--Supreme Ind Jan-Mar industrial pdts sales INR 3.46 bln vs INR 3.52 bln
--Supreme Ind Jan-Mar packaging product sales INR 4.26 bln vs INR 3.76 bln
--Supreme Ind Jan-Mar consol operating profit INR 4.49 bln, dn 15.5% on year
--Supreme Ind Jan-Mar consol operating profit margin 14.77% vs 17.56% yr ago
--Supreme Ind: Cash surplus of INR 9.44 bln as on Mar 31
--Supreme Ind expects capex to reach INR 11 bln
--Supreme Ind: Plastic piping system capacity 870,000 tn/year as on Mar 31
--Supreme Ind: Expect piping system capacity to reach 1 mln tn by FY26-end
--Supreme Ind: Expects better volume growth in export mkt for pdt portfolio
--Supreme Ind Jan-Mar plastic pipe sales 162,227 tn vs 158,795 tn year ago
By Arya S. Biju
MUMBAI – Plastic manufacturing and processing company Supreme Industries Ltd. reported subdued earnings for the March quarter with its bottom line marking a high-teen fall and top line growing marginally on a year-on-year basis. The company also reported a double-digit fall in its bottom line and a low-single-digit rise in its top line for the financial year ended Mar. 31. The earnings were affected by lower government spending on infrastructure, unseasonal rainfall, and volatile polyvinyl chloride resin prices, the company said.
The company's consolidated net profit for the quarter fell over 17% on year to INR 2.94 billion, marking the second highest on-year fall in 10 quarters. This marked the third consecutive quarter of on-year decline in the company's bottom line. However, the net profit beat analysts' expectation of INR 2.48 billion by a wide margin. The company's consolidated revenue for the quarter grew marginally on year to INR 30.27 billion, marking the lowest on-year growth in the top line since the December quarter of 2015. This was also below the analysts' expectation of INR 30.89 billion by a wide margin.
On Thursday, shares of the company ended at INR 3,511.70 on the National Stock Exchange, down 0.4% from the previous close. The stock rose sharply after the announcement of the Jan-Mar earnings, but fell 4.5% to INR 3,436 from the day's high of INR 3,625.30.
For the financial year ended Mar. 31, the company reported a consolidated net profit of INR 9.61 billion, down over 10% compared to the previous year. Its consolidated revenue for the same period rose over 3% on year to INR 104.46 billion.
The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, fell over 15% on year in Jan-Mar to INR 4.17 billion, but was above the analyst's expectation of INR 4.01 billion. As of Mar. 31, the company had a cash surplus of INR 9.44 billion, below the INR 11.78 billion as of Mar. 31, 2024.
The company's plastic goods volume for the quarter rose over 2% on year to 199,865 tonnes. Its turnover from the sale of plastic goods was INR 29.59 billion, down marginally from INR 29.79 billion reported in the year-ago quarter. For 2024-25 (Apr-Mar), the plastic goods volume was 674,510 tonnes, up over 5% on year. For FY25, the company's revenue from the sale of plastic goods rose nearly 3% on year to INR 102.95 billion.
Revenue from the plastics piping products segment, which contributed close to 69% of the company's revenue in the reporting quarter, fell nearly 4% on year to INR 20.74 billion. The company sold 162,227 tonnes of plastic piping products in the reporting quarter. Its revenue from the industrial product segment fell 1.5% on year to INR 3.46 billion. However, revenue from both packaging products and consumer products segments grew on a year-on-year basis. The packaging products segment's sales for the quarter were INR 4.26 billion, up over 13% on year. Revenue from the consumer products segment was INR 1.36 billion, up nearly 15% on year.
As of Mar. 31, the company's total installed capacity of its plastic piping system business was 870,000 tonnes per annum from 740,000 tonnes a year ago. Supreme Industries expects the capacity of this vertical to reach 1 million tonnes by the end of FY26, M.P. Taparia, managing director of the company, said in a press release. The company also plans to spend about INR 11 billion as capital expenditure on various expansion activities.
Going forward, the company also expects to have better volume growth in the export market for its product portfolio, given the tariff issues affecting other countries severely, Taparia said. Along with the Jan-Mar earnings, the company also announced an INR 24 per share final dividend for FY25. End
Edited by Tanima Banerjee
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