Supreme Industries Ltd has announced securing a substantial repeat order from Bharat Petroleum Corporation Ltd (BPCL) for the supply of composite LPG cylinders. The company disclosed this development through a regulatory filing under SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Order Details and Specifications

Supreme Industries has received a Letter of Acceptance (LOA) from BPCL for the supply of approximately 2,00,000 units of 10.0 kg capacity composite LPG cylinders. This repeat order stems from Supreme Industries' original offer through a tender process initiated by BPCL.

Contract Terms and Timeline

The contract establishes a 6-month execution period from the date of LOA placement. BPCL retains the discretion to extend this timeline for an additional 6 months if required. This flexibility provides both parties with operational adaptability while ensuring timely delivery of the cylinders.

Market Performance and Financial Context

Ahead of the announcement, shares of Supreme Industries closed 0.69% lower at ₹3,327.90 on the NSE. The company has demonstrated strong operational performance with 8% growth in overall volumes during the first six months of the financial year and expects full-year volume growth in the range of 12-14%.

For the July-September quarter, net profit declined 20% year-on-year to ₹165.00 crore, while revenue rose 5% to ₹2,273.00 crore. The company has revised its guidance, raising Plastic & Furniture volume growth to 15-17% and overall volume growth to 14-15%, while maintaining its EBITDA margin guidance at 14.5-15.5%.

Regulatory Compliance and Business Impact

Supreme Industries confirmed that this order falls outside the purview of related party transactions. The company has no promoter, promoter group, or group company interests in BPCL. This ensures the transaction maintains arm's length principles and regulatory compliance.

This repeat order reinforces Supreme Industries' established relationship with BPCL and validates the quality of its composite LPG cylinder manufacturing capabilities. The ₹54.00 crore contract value represents a significant addition to the company's order book in the plastic products segment.

Supreme Industries , a prominent player in the Indian manufacturing sector, has recently undergone search and inspection proceedings conducted by Maharashtra GST officials. The company, known for its diverse range of plastic products, is currently cooperating with the authorities as they examine various aspects of its operations.

Details of the Inspection

The GST officials from Maharashtra conducted their search and inspection at three key locations of Supreme Industries:

1. Registered Office: 612, Raheja Chambers, Nariman Point, Mumbai - 400021
2. Corporate Office: 1132, 11th Floor, Solitaire Corporate Park, 167, Andheri - Ghatkopar Road, Chakala, Andheri (East), Mumbai - 400093
3. Khopoli Unit: Honad, Khalapur, Khopoli - 410203

The inspection, which commenced on November 19 at approximately 12:05 PM, is being carried out under the authority of the Commissioner of State Tax, Maharashtra State, Mumbai.

Scope of the Inquiry

According to the information provided by Supreme Industries, the GST officials are conducting inquiries into various aspects of the company's operations, including:

1. Various details from Accounts
2. Information regarding Tax payments
3. Insurance-related information

Company's Response

Supreme Industries has stated that its officials are fully cooperating with the GST authorities and have been responsive to all clarifications and details sought. The company has expressed its commitment to providing any additional documents that may be required as the inspection proceeds.

Impact on Operations

Despite the ongoing inspection, Supreme Industries has assured that its regular business activities continue unaffected. The company's initial assessment suggests that the outcome of these proceedings is not expected to have any material impact on its operations.

Conclusion

While regulatory inspections can often raise concerns among investors and stakeholders, Supreme Industries' proactive approach in cooperating with the authorities and its assurance of minimal operational impact demonstrate the company's commitment to transparency and compliance. As the inspection is still ongoing, further developments may provide more clarity on the situation.

Investors and stakeholders are advised to stay informed about any updates the company may provide regarding the outcome of these proceedings.