Revenue from operations rose 2.48% year on year (YoY) to Rs 2,509.88 crore in the quarter ended 31 December 2024.
Profit before tax stood at Rs 245.41 crore in the third quarter of FY25, registering a de-growth of 27.39%.
Operating profit declined 18.54% YoY to Rs 308.98 crore during the period under review. Operating profit margin reduced to 12.20% in Q3 FY25 compared to 15.29% in Q3 FY24.
The overall turnover of value-added products remained at Rs 961 crore during the December 2024 quarter, up 13% YoY.
The company continued to be debt-free, having a cash surplus of Rs 290 crore as of 31 December 2024.
M. P. Taparia, managing director, Supreme Industries, 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, it 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.
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 crore. Total cash outflow towards capex has been Rs 718 crore during first nine months and is likely to reach around Rs 1000 crore for the year. Entire Capex outflow shall be funded from internal accruals.
Supreme Industries is engaged mainly in production of plastic products and operate in various product categories like Plastic piping system, cross laminated films & products, protective packaging products, industrial molded components, molded furniture, storage & material handling products, performance packaging films and composite LPG cylinders.