The business fared poorly in the third quarter as PVC prices in open market were quite low compared to domestic producer prices
The Supreme Industries Limited, India’s leading Plastics product manufacturing company, has reported consolidated financial results for the period ended December 31, 2024.
Supreme Industries has reported total income of Rs. 2,518.78 crores during the period ended December 31, 2024 as compared to Rs. 2,288 crores during the period ended September 30, 2024. The company reported total income of Rs. 2,469.81 crores during the period ended December 31, 2023.
Supreme Industries has posted net profit of Rs. 186.97 crores for the period ended December 31, 2024 as against net profit of Rs. 206.60 crores for the period ended September 30, 2024. The company posted net profit of Rs. 256.17 crore for the period ended December 31, 2023.
For the 9 months period ended December 31, 2024, Supreme Industries has reported total income of Rs.7, 464.57 crores as compared to Rs. 7,173.97 crores during the 9 months period ended December 31, 2023.
The company has posted net profit of Rs. 666.94 crores for the 9 months period ended December 31, 2024 as against net profit of Rs. 714.90 crores for the 9 months period ended December 31, 2023.
The overall turnover of value-added products remained at Rs. 961 crore during Q3 FY25 of the current year against Rs. 853 crore in the corresponding quarter of the previous year achieving growth of about 13%.
The company Continues to be debt free and having a cash surplus of Rs. 290 crore as on 31st December, 2024.
M. P. Taparia, Managing Director, The Supreme Industries Limited said, Plastic Pipe Systems business growth continues to be adversely affected due to adverse PVC resin prices scenario and demand from infra spend not picking up as envisaged. Considering better demand in the second half of the year in the segments served by the Company, the Company had earlier envisaged 16-18% volume growth for the current year for the Plastic Piping System.
The business fared poorly in the third quarter as PVC prices in open market were quite low compared to domestic producer prices and due to extended winter rainfall in South India and some Eastern states.
The company expects good demand from Agri and Housing segments for the last quarter. The entire distribution pipeline has de-stocked seeing the continued fall in prices. As the prices have reached a low level, the company expects good demand going forward in the current quarter. The company also expects some improvement in infra sector demand, as this being the last quarter of the financial year.
The international PVC prices have stabilized at a low level. The local makers are adjusting their price close to import parity. However, there was a move from local producers to impose Anti-Dumping duty on import of PVC suspension grade resin. The decision from the Finance Ministry is awaited. Thus the PVC resin price trend remains in an uncertain arena. Thus, the company is not in a position to give specific volume growth guidance.
However, as several brownfield expansions of capacities are in place, the company with its large portfolio of SKUs in this system is expected to grow 3% to 4% more than the country's growth in plastic Pipe System during this year. All brownfield expansions at various locations of Plastic Piping Systems are progressing smoothly.
The company is well positioned to cater to increased demand of its product with increased available capacity. The company has reached an annual capacity of 8,20,000 M.T. as on 31st December 2024 and with completion of all the expansion plans undertaken in hand, total installed capacities of the Piping System Business Vertical shall reach 9,00,000 M.T. per annum by the end of FY 24-25.
Three new greenfield plants for Plastic piping division at Jammu, Bihar and Madhya Pradesh shall be taken up for execution in the coming financial year. Land at all the three places is in the company's possession and detailed plans for products and capacities are being worked out.
Equipment has arrived for the PP silent pipe system which shall be launched in technical collaboration with Poloplast Gmbh of Austria during 1st quarter of FY 25-26. The newly introduced PERT Piping System and PE single wall corrugated pipes are witnessing encouraging response. Plans to increase SKUs in the Bath fittings and sanitaryware segment are progressing well and till now the division has reached 629 SKUs, from 421SKUs at the beginning of the year. The company is servicing 40 different application based systems and continues to explore more value added systems.
The company continues to remain focused to invest and enlarge the product basket in its piping business and to increase the range of value-added products. The company now has a SKU basket of 14,234 numbers in Piping System Business Vertical.
The company has placed orders for all necessary equipment and the work on civil construction has started at its new site at Kanpur Dehat in UP for making Windows. In the first phase, the company has planned to put entire window making facilities at Kanpur and cater to customers in Uttar Pradesh, Uttarakhand and NCR. The company expects to launch and supply Windows in the first half of 2025-26.
Looking at the business outlook and opportunities, the company has planned and committed the highest capex (including carry forward commitments) of around Rs. 1,500 crores. Total cash outflow towards capex has been Rs. 718 crores during the first nine months and is likely to reach around Rs. 1,000 crores for the year. Entire Capex outflow shall be funded from internal accruals.”
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