SUPREMEIND Q1 FY25 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,636 Cr
verified against source
Revenue YoY
12%
reported change
EBITDA
₹425 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Supreme Industries reported Q1 FY25 results with volume growth of 17% YoY to 173,875 tons and net product turnover of INR 2,612 crore (+12% YoY). Consolidated operating profit stood at INR 425 crore (+24% YoY) with EBITDA margin of 16%, expanding 157bps YoY. PAT of INR 276 crore grew 27% YoY. Despite this, June saw demand disruption due to sharp PVC price spike (+INR 8/kg in first half), causing dealer destocking. Management maintained full-year guidance of 25% volume growth for plastic piping and 20% overall, with EBITDA margin guidance of 15-15.5%. The company committed INR 1,500 crore CapEx (INR 1,000-1,200 crore cash outflow) to expand piping capacity to 835,000 tons by FY25-end from 740,000 tons. Value-added product sales reached INR 925 crore (+22% YoY). Risks include margin pressure from falling PVC prices, dealer destocking extending into July, and competitive intensity as rivals claim aggressive pricing by Supreme. FY25 revenue guidance of INR 12,000-12,500 crore implies 20%+ revenue growth.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained guidance despite June destocking, citing strong pipeline, new product launches (PE-RT, PE silent, gas piping), and capacity expansion. Industry expected to grow 12-15%.
- Management expects full-year margin to be in the 15-15.5% range despite Q1 margin being 16%, citing PVC price volatility and expected further declines in July.
- Revenue guidance implies ~20% YoY growth from ~INR 10,800 crore in FY24, based on volume growth and value-added product mix.
- Cash outflow for CapEx expected in the range of INR 1,000-1,200 crore out of total INR 1,500 crore committed, to be funded from internal accruals.
Risks flagged
- PVC resin prices spiked INR 8/kg in June causing dealer destocking; prices have since fallen INR 4/kg from mid-July with further decline expected. This creates demand uncertainty in Q2.
- Competitors allege Supreme is aggressively cutting prices and pulling down industry margins. Management dismissed this as 'market rumors' without providing data to counter the claim.
- Q1 EBITDA margin was 16% but guidance maintained at 15-15.5%. Analysts noted 120-150bps sequential margin compression in pipes segment adjusted for inventory impacts, attributed to higher agri pipe mix (lower margin) vs plumbing.
- Management acknowledged significant delays in obtaining PVC-O pipe manufacturing machines (30-month delivery for new lines). Current capacity of only 2,500 tons limits participation in this growing government-accepting segment replacing ductile iron pipes.
Key quotes
- We maintain 25% plastic piping growth. We are committing, not only committing by words, we are committing investment also. You have heard of my all investment plan in 10 new site, our HC site, we are expanding capacity. We are very confident market will grow.
- The increase was not considered sustainable. Due to artificial reason of the freight going up from Asia to India, majority of imports of PVC coming from Asia to India. As the majority, 80% PVC in the country come from Asia, and the freight rate due to rates, the prices went up suddenly big way.
- We believe should be between 40%-44%. The company has evolved between 38%-40%. That is not our ambition. So we are hovering around 35%, 36%, 37%. So going forward, we should inch up a bit more towards 38%+.
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