Earnings Review
Supreme Ind Q1 PAT dn YoY on rise in input costs, inventory
This story was originally published at 14:28 IST on 24 July 2025
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--Supreme Ind Apr-Jun consol net profit INR 2.02 bln
--Analysts saw Supreme Ind Apr-Jun consol net profit at INR 2.45 bln
--Supreme Ind Apr-Jun consol revenue INR 26.09 bln vs INR 26.36 bln year ago
--Supreme Ind Apr-Jun consol net profit INR 2.02 bln vs INR 2.73 bln yr ago
--Supreme Ind Q1 consol plastic pipe sales INR 17.92 bln vs INR 18.58 bln
--Supreme Ind Q1 consol industrial pdts sales INR 3.02 bln vs INR 3.06 bln
--Supreme Ind Q1 consol packaging pdts revenue INR 4.02 bln vs INR 3.68 bln
--Supreme Ind Q1 consol consumer pdts revenue INR 983.9 mln vs INR 971.9 mln
--Supreme Ind sold 183,793 tn plastic goods in Apr-Jun, up 5.7% on year
--Supreme Ind Apr-Jun consol operating profit INR 3.44 bln vs INR 4.25 bln
--Supreme Ind Apr-Jun consol operating profit margin 13.10% vs 15.99% yr ago
--Supreme Ind cash surplus of INR 8.56 bln on Jun 30 vs INR 9.44 bln qtr ago
--Supreme Ind:FY26 cash outflow seen at INR 13.5 bln on existing capital needs
--Supreme Ind:Capacity expansion for plastic piping ops progressing smoothly
--Supreme Ind: Capacity expansion for protective packaging pdts progressing
--Supreme Ind: Polymer prices remain in affordable range at lower level
--Supreme Ind: PVC prices remain in downward range
--Supreme Ind: Apr-Jun plastic piping ops affected on early onset of monsoon
--Supreme Ind: Inventory loss affected profitability in Apr-Jun
--Supreme Ind: See protective packaging pdt FY26 sales to cross INR 10 bln
--Supreme Ind:Protective packaging pdt FY26 volume rise seen in double digits
--Supreme Ind: Capex for Wavin Ind buy to be funded via internal accruals
--Supreme Ind:Capex for capital commitments to be funded via internal accrual
By Akash Mandal
MUMBAI – Higher raw material cost, an early onset of monsoon, and the resultant inventory losses led to Supreme Industries Ltd.'s top line and bottom line to fall on year in the June quarter. The company's profits fell for the fourth straight quarter, while revenue fell for the first time in three quarters.
The Mumbai-based pipe maker reported a consolidated net profit of INR 2.02 billion for the June quarter, down 26% on year and lower than analysts' expectations of INR 2.45 billion. Sequentially, its bottom line declined over 31% from INR 2.94 billion. Its consolidated revenue fell 1% on year and 14% sequentially to INR 26.09 billion, below analysts' estimate of INR 28.03 billion.
Its consolidated operating profit fell 19% on year to INR 3.44 billion, while consolidated operating profit margin fell 289 basis points on year to 13.10% during the quarter.
While its earnings were weak, expenses surged on year. The company's total expenses rose 2% on year but fell 12% sequentially to INR 23.86 billion in the reporting quarter. The rise in cost was driven by higher raw material costs, which rose 8% both on year and sequentially to INR 19.20 billion. Its inventory losses surged to INR 1.67 billion during the quarter from gains of INR 23.20 million in the year-ago period.
For the June quarter, the company's sales of plastic pipes, by far its largest vertical, fell to INR 17.92 billion on a consolidated basis against INR 18.58 billion in the year-ago period. Consolidated sales of industrial products fell 1% on year to INR 3.02 billion. On other hand, consolidated packaging products and consumer products sales rose 9% and 1% to INR 4.02 billion and INR 983.90 million, rspectively. In total, the company sold 183,793 tonnes of plastic goods in the quarter, up nearly 6% on year.
The company said it will acquire two wholly-owned subsidiaries--Wavin India Pipes and Fittings Manufacturing Pvt. Ltd. and Wavin India Holdings Pvt. Ltd.--for an aggregate amount of INR 3.10 billion. This cost also includes net working capital requirements. "The acquisition as a going concern on a slump sale basis, is likely to be completed by 31st July 2025," the company said in its press release.
The pipe-maker said that it sees cash outflow of INR 13.50 billion in 2025-26 (Apr-Mar) due to existing capacity needs, acquisition of Wavin Business, and new commitments. The capital expenditure will be funded from internal accruals. The company said it has a cash surplus of INR 8.56 billion as of Jun. 30 against INR 9.44 billion a quarter ago.
The company also said it is entering into a master technology licence agreement with Wavin B.V. Netherlands to access on exclusive basis for India and other countries part of the South Asian Association for Regional Cooperation. As part of the agreement, effective from Aug. 1, Supreme Industries can access new technologies by the Dutch company for the Indian market for a timeline of seven years.
The company said capacity expansion for both its plastic pipes and protective packaging products businesses "are progressing smoothly." It will set up a new material handling products unit at Malanpur in Madhya Pradesh, the company said.
Speaking on raw material prices during the June quarter, the company said polymer prices remained affordable at a lower range and polyvinyl chloride prices remained in a downward range. The company said its protective packaging segment sales are expected to cross INR 10 billion and volumes are seen rising in double digits in FY26. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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