Supreme Industries , a leading plastic products manufacturer in India, has made significant strides in expanding its technological capabilities and reported its financial results for the first quarter.

Technology License Agreement

Supreme Industries has entered into a technology license agreement with Wavin Netherlands, granting the company exclusive access to plastic piping technology in India and SAARC countries. This strategic partnership is expected to enhance Supreme Industries' technological prowess in the plastic piping segment across the specified regional markets.

Business Acquisition

The company has also signed Business Transfer Agreements (BTA) with Wavin Industries Limited and its two wholly-owned subsidiaries. The acquisition, valued at approximately ₹310.00 crore, is expected to be completed by July 31, 2025, subject to fulfillment of agreed terms and conditions.

Q1 Financial Performance

Supreme Industries has released its unaudited standalone financial results for the quarter ended June 30:

Despite a 5.73% increase in plastic goods sold, the company experienced a slight decline in total income and a more significant decrease in profitability compared to the same quarter last year.

Business Outlook

Mr. M. P. Taparia, Managing Director of Supreme Industries, commented on the business outlook:

• Polymer prices remain at affordable lower levels, with PVC prices in a downward trend, which is expected to support business growth.
• The early onset of monsoon affected the agricultural piping system business in the first quarter.
• The company anticipates good demand for housing and agriculture, supported by favorable rainfall in most parts of the country.
• With the government's commitment to boost infrastructure spending, demand from that sector is expected to revive.

Other Developments

• The company maintains a strong financial position with a net cash surplus of ₹856.00 crore as of June 30.
• Supreme Industries plans to set up a new unit for material handling products at Malanpur (M.P.) to expand its footprint in central India.
• The company has successfully executed its first order for PE pipe for gas applications and received DVGW Certification for Electrofusion (EF) Fittings from Germany.
• Construction for the Profile window project is nearing completion, with trial production expected to commence in the second quarter of the current fiscal year.

Supreme Industries continues to focus on expanding its product range and increasing the share of value-added products across all divisions. The company remains optimistic about its growth prospects, particularly in the plastic piping division and protective packaging products segment.

Supreme Industries , a leading plastics manufacturer, has released its financial results for the first quarter, revealing a mixed performance with notable declines in key metrics.

Financial Highlights

Performance Analysis

Supreme Industries faced challenges in the first quarter, with its consolidated net profit declining by 26% compared to the same period last year. The company's revenue also saw a marginal decrease of about 1%, indicating a tough operating environment.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) took a significant hit, dropping by 17.3% year-over-year. This decline in EBITDA, coupled with the revenue decrease, led to a compression in the EBITDA margin, which fell by 246 basis points to 12.22%.

Quarterly Comparison

Comparing the latest quarter to the previous one, there are some positive signs:

This quarter-on-quarter improvement suggests that while the company is facing year-over-year challenges, it may be on a path to recovery.

Market Position

Despite the year-over-year decline, Supreme Industries maintains its position as a significant player in the plastics industry. The company's ability to improve its performance sequentially in a challenging environment demonstrates its resilience and adaptability.

As market conditions evolve, investors and analysts will be closely watching Supreme Industries' strategies to navigate the current headwinds and return to year-over-year growth in the coming quarters.