PL First Cut – Supreme Industries Ltd Q2FY24

PL First Cut – Supreme Industries Ltd Q2FY24 – Praveen Sahay – Research Analyst, Prabhudas Lilladher Pvt Ltd

Supreme Industries Ltd. | Q2FY24 Result First Cut

CMP: Rs4,268| Mcap: Rs542bn | Accumulate

• Revenues increased by 10.6% YoY to Rs23.1bn (PLe: Rs21.1bn, 9.3% above) vs cons. est.: Rs23.0bn. overall volume increased by 23.2% YoY to 138kMT (vs Astral/Apollo Pipe/Finolex up 28%/28%/6.2 YoY) and realization decline by 10.2% YoY.
• Gross margins expanded by 1030bps YoY to 33.5%. (PLe:28.3%)
• EBITDA grew by 142% YoY to Rs3.6bn (PLe: Rs2.3bn) vs 8.8% above cons. est.: Rs3.3bn. EBITDA margins expanded by 840bps YoY to 15.4% (PLe: 10.6% & Cons. est. 14.2%)
• EBITDA per Kg reached to Rs 25.9/Kg (vs Astral of Rs 34.7/Kg up 22.6% YoY)
• PBT grew by 241% YoY to Rs3.0bn (PLe: Rs1.6bn) vs cons. est.: Rs2.8bn
• PAT reported Rs2.4bn (PLe: Rs1.2bn) vs cons. est.: Rs2.2bn
• Plastic Pipe segment reported a revenue of Rs15.1bn up 16.6% YoY. EBIT stood at Rs2.0bn with a margin of 13.3%.
• Packaging Product segment reported a revenue of Rs3.5bn up 7.4% YoY. EBIT stood at Rs478mn with a margin of 13.6%.
• Industrial Product segment reported a revenue of Rs3.3bn down 2.7% YoY. EBIT stood at Rs252mn down 15.4% YoY with a margin of 7.7%.
• Consumer Product segment reported a revenue of Rs1.05bn down 5.8% YoY. EBIT stood at Rs175mn up 13% YoY with a margin of 16.6%.