SUPREMEIND Q4 FY24 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,979 Cr
verified against source
Revenue YoY
16.1%
reported change
EBITDA
₹531 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Supreme Industries delivered mixed Q4 FY24 results with 16% volume growth and INR 2,979 crore revenue (+16% YoY), though PAT declined 1.1% to INR 355 crore due to unfavorable product mix and inventory losses of INR 50 crore for the full year. The EBITDA margin contracted 130bps YoY to 17.8% as lower-margin commodity pipes (SDP, PVC) comprised a larger share of sales. Despite this, FY24 consolidated PAT grew 24% to INR 1,070 crore on robust annual performance. Management targets 25% volume growth in plastic piping for FY25, driven by 5 new piping systems, geographic expansion (Bihar, Andhra Pradesh, JNPT), and INR 1,500 crore CapEx (INR 1,000 crore for piping). The company is gaining market share (12-13% vs industry growth of 13.79%), with gas piping (200,000 ton annual market) identified as a key future growth lever. Jal Jeevan Mission contributed INR 400 crore (25,000 tons) and remains supportive. Risk: margin pressure from CPVC oversupply and declining EBITDA per kg signals competitive pricing strategy.
Colored figures show movement against the previous available record.
Guidance to track
- Company targets 25% volume growth in plastic piping segment specifically, with overall company volume growth of 20% for FY25, driven by 5 new piping systems, expanded distribution network, and new plant commissions in Bihar and Andhra Pradesh operational by Q3-Q4 FY25.
- Total installed capacity to increase from 950,000 MT to 1,050,000 MT by end of FY25, with plastic piping capacity rising from 739,000 MT to 835,000 MT. Brownfield expansion accounts for 60-70% of capacity additions.
- Adding acoustic polypropylene pipe system (Poloplast Austria collaboration), polyethylene gas piping system, PERT piping system, polyethylene single-wall corrugated pipe, and rainwater harvesting systems to expand addressable market.
- Management forecasts annual EBITDA margin of 15.5% for FY25 despite Q4 FY24 margin of 17.8%, implying margin compression as lower-margin commodity pipes become a larger share of sales mix.
Risks flagged
- EBITDA per kg has fallen from INR 27/kg in FY23 to INR 22.8/kg in Q4 FY24. Dealers report Supreme Industries cutting prices to gain volumes. This conscious trade-off of margins for market share could pressure profitability if competition intensifies further.
- Management explicitly stated Jal Jeelan Mission will be 'over in the next two years' with current run-rate of INR 400 crore revenue from this scheme. While gas piping identified as replacement, the transition may cause volume volatility.
- CPVC prices have declined 4-6 per kg with too many players and excess capacity in the market. While Supreme has no supply constraint, realization growth in this segment has stalled. Management acknowledged margin pressure in plumbing applications.
- Full year FY24 inventory loss of INR 50 crore (INR 51 crore loss on stock valuation vs prior year) created INR 1 per kg headwind. If raw material prices remain volatile, similar losses could recur in FY25, pressuring margins.
Key quotes
- Industry has grown by volume around 13.79% in plastic piping system, and our company grew by 33%.
- Gas system... maybe 200,000 tons annual, overall in the country. We are still not a player. If we are now getting approval in various locations, then we can talk more intelligently.
- We are forecasting this year also 15.5%.
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