Supreme Industries March Quarter Profit Drops Over 17%

Supreme Industries Ltd. reported a muted performance for the March quarter, with consolidated net profit slipping over 17% on year to ₹2.94 billion, the sharpest decline in 10 quarters. This also marked the third straight quarter of on-year profit contraction. While the bottom line beat analyst estimates of ₹2.48 billion, revenue growth disappointed, rising only marginally to ₹30.27 billion;its slowest pace since December 2015 and below expectations of ₹30.89 billion.

The subdued results were attributed to a slowdown in government infrastructure spending, volatile PVC resin prices, and unseasonal rainfall impacting volumes and pricing, the company said in a statement.

2024-25 Performance

For the full year ended March 31, net profit fell over 10% to ₹9.61 billion, while revenue rose 3% to ₹104.46 billion. EBITDA for the January-March quarter dropped over 15% on year to ₹4.17 billion, though it came in above analysts’ forecast of ₹4.01 billion.

The company held a cash surplus of ₹9.44 billion at the end of March, lower than ₹11.78 billion a year ago.

Segment Highlights

• Plastic goods volume rose 2% in January - March to 199,865 tonnes; 2024-25 volumes were up 5% at 674,510 tonnes.
  

• Revenue from plastic goods in January - March was ₹29.59 billion, marginally down from ₹29.79 billion on year; 2024-25 revenue grew 3% to ₹102.95 billion.
  

• Piping products (around 69% of total January-March revenue) declined nearly 4% on year to ₹20.74 billion, with volumes at 162,227 tonnes.
  

• Industrial product revenue fell 1.5% to ₹3.46 billion.
  

• Packaging products rose over 13% to ₹4.26 billion; consumer products grew nearly 15% to ₹1.36 billion.
  
  

Capacity Expansion and Outlook

As of March-end, the installed capacity for the piping systems business stood at 870,000 tonnes per annum, up from 740,000 tonnes a year ago. The company targets reaching 1 million tonnes by 2025-26 end. Managing Director M.P. Taparia said Supreme Industries will invest ₹11 billion in capex for ongoing expansion and is optimistic about stronger volume growth in export markets amid global tariff disruptions.

The board declared a final dividend of ₹24 per share for 2024-25.