Supreme Industries Ltd — Financial Report

Company Overview Founded in 1942 and headquartered in Mumbai, Supreme Industries is a leading Indian plastics manufacturer producing piping systems, molded furniture, packaging films, and industrial components. It also makes automotive parts and LPG composite cylinders. Market Snapshot & Valuation • Market Capitalisation: ~₹54,770 Cr • P/E (TTM): ~57×, above the sector average (~44.5×) • ROE: ~15.6%, ROCE: ~21% • Book Value per Share: ₹445.61; P/B Ratio: ~9.7× • EPS (TTM): ₹75.64 • Dividend Yield: ~0.8% • EBITDA Margin: ~14.6% Q4 FY25 Performance • Net Profit fell 17% YoY to ₹294 Cr from ₹355 Cr • Revenue rose marginally ~0.6% YoY to ₹3,027 Cr • PBT declined ~21% to ₹367 Cr • Operating Profit dropped ~15.5% to ₹449 Cr; margin fell from 17.6% to 14.8% Cash Position & Capex • Cash surplus: ₹944 Cr (down from ₹1,178 Cr last year) • Approved capex: ₹1,100 Cr for capacity expansion, acquisitions, and new product launches Segmental Insights & Strategy • Value-added products grew 8% YoY to ₹4,060 Cr, partially offsetting weakness in pipe volumes • Facing challenges from volatile PVC resin prices, muted infrastructure demand, and excess rainfall • Expanding HDPE capacity, adding over 75 new SKUs in electrofusion fittings, and targeting product applications increase from 45 to 50 Strengths • Market leader in diversified plastic products • Strong ROE/ROCE and liquidity position • Strategic focus on higher-margin, value-added products Risks • Margin pressure from raw material volatility and weak core demand • High valuation may limit upside potential • Execution risks tied to large capex and product launches Conclusion Q4 FY25 saw steady revenue but a notable drop in profit and margins. Despite headwinds, Supreme Industries’ healthy returns, liquidity, and growth-focused investments suggest long-term resilience, especially if raw material costs stabilize and value-added segments expand.