Supreme Petrochem · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
Critical production equipment failure in December has suspended ABS operations indefinitely. Collaborators and equipment suppliers arrived on-site but no restart timeline provided. Capital cost covered under warranty and insurance, but loss of production and market penetration opportunity represents significant setback.
SM prices declined ~20% YoY averaging $810/MT in Q3, compressing PS margins. While prices have stabilized with upward bias, global supply-demand dynamics and benzene/ethylene costs could exert further pressure on margins.
Average gross spreads previously around ₹15,200/tonne have compressed significantly due to falling SM prices and weak demand. European demand remains erratic and domestic OEM lifting was subdued in H1 due to extended monsoons.
Analyst raised concern about credit cycles in ABS business (40-45 days vs leaner PS cycle). Management acknowledged managing credit carefully but deflected on specifics, noting willingness to reduce credit periods industry-wide.
