- Net Product Turnover (Q4 FY24): INR2,979 crores
- Net Product Turnover (Q4 FY23): INR2,566 crores
- Volume Growth (Q4 FY24): 16%
- Product Value Growth (Q4 FY24): 37%
- Net Product Turnover (FY24): INR10,022 crores
- Net Product Turnover (FY23): INR9,066 crores
- Volume Growth (FY24): 26%
- Product Value Growth (FY24): 11%
- Consolidated Operating Profit (Q4 FY24): INR531 crores
- Profit After Tax (Q4 FY24): INR355 crores
- Consolidated Operating Profit (FY24): INR1,654 crores
- Profit After Tax (FY24): INR1,070 crores
- Plastic Piping System Business Growth (FY24): 34% in volume, 15% in value
- Packaging Product Segment Growth (FY24): 8% in volume, 7% in value
- Industrial Products Segment Growth (FY24): 5% in volume, -3% in value
- Consumer Product Segment Growth (FY24): Flat in volume, -1% in value
- Value-Added Product Turnover (FY24): INR3,737 crores
- Total Cash (March 31, 2024): INR1,178 crores
- CapEx Plan (FY25): INR1,500 crores
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Supreme Industries Ltd (BOM:509930, Financial) achieved a significant volume growth of 26% and product value growth of 11% year-over-year.
- The company reported a consolidated operating profit increase of 22% and profit after tax increase of 24% compared to the previous year.
- Plastic piping system business grew by 34% in volume and 15% in value terms, indicating strong demand in this segment.
- The company has a robust cash position with INR1,178 crores as of March 31, 2024, up from INR738 crores the previous year.
- Supreme Industries Ltd (BOM:509930) plans a substantial CapEx of around INR1,500 crores for the year, indicating future growth and expansion.
Negative Points
- The industrial products segment experienced a decline of 3% in value terms, indicating challenges in this area.
- Consumer product segment business remained flat in volume and decreased by 1% in value terms, showing stagnation in this segment.
- The company's furniture business did not show any growth in value terms and had negligible growth in volume terms.
- The composite cylinder division had a subdued year due to lower-than-expected purchases from Indian Oil Corporation.
- There was an inventory loss of around INR50 crores for the full year, impacting overall profitability.
Q & A Highlights
Q: How do you see the industry in the coming year, especially regarding overcapacity and margin improvements?
A: The plastic industry always has many players, but Supreme Industries has grown by 26% in volume. We are forecasting a 15.5% margin for the coming year. - M.P. Taparia, Managing Director
Q: Do you think focusing on the plastic piping systems business will help achieve greater cost optimization and higher market share?
A: Yes, our market share has increased, and we are investing more in segments with growth opportunities, particularly plastic piping, which has immense potential for the next five years. - M.P. Taparia, Managing Director
Q: What is your capacity as of FY24 end in each segment, and how will it look like in FY25 and FY26?
A: As of March 31, 2024, our total installed capacity is 950,000 metric tonnes. We plan to increase this to 1,050,000 metric tonnes by the end of FY25, with significant investments in plastic piping. - Unidentified Company Representative
Q: How much did the Nal Se Jal scheme contribute to your revenues in FY24, and what is the outlook for this segment?
A: The Nal Se Jal scheme contributed around 25,000 tonnes, translating to approximately INR400 crores. We expect this to continue as many states still need to connect households. - M.P. Taparia, Managing Director
Q: What is your outlook on PVC prices and the impact of the Red Sea conflict on logistics?
A: PVC prices are expected to remain stable due to the slow global economy. The Red Sea conflict has not significantly impacted our logistics, with only minor delays and cost increases. - M.P. Taparia, Managing Director
Q: Can you explain the PERT piping system and its market potential?
A: PERT is used for hot water applications, and we are introducing it alongside other systems like polypropylene acoustic pipes and polyethylene gas piping systems. These new systems will cater to growing market demands. - M.P. Taparia, Managing Director
Q: What is the expected growth in the plastic pipes segment for FY25, and what are the key drivers?
A: We expect a 25% volume growth in plastic pipes, driven by adding new systems, expanding capacities, and increasing our market presence through new distributors and retailers. - M.P. Taparia, Managing Director
Q: How do you see the future of the Jal Se Nal program and its impact on your business?
A: The Jal Se Nal program is expected to continue for the next two years, after which the focus will shift to gas pipe systems and other plastic systems, which also present significant growth opportunities. - M.P. Taparia, Managing Director
Q: What is your market share in the plastic piping industry, and how do you see it evolving?
A: Our market share is around 12% to 13%. We expect to grow at 25% next year, while the industry is expected to grow at around 12%. - M.P. Taparia, Managing Director
Q: What is the outlook for the OPVC segment and its capacity constraints?
A: We currently have limited capacity for OPVC, producing around 2,500 tonnes annually. No new capacity is expected this year due to equipment supply delays. - M.P. Taparia, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
