Shares of Supreme Industries fell over 4 percent on January 20 after the company reported a year-on-year decline in net profit, EBITDA, and EBITDA margins for the third quarter.
At 2:33 PM, the stock was trading over 3 percent lower at Rs 4,070. On a year-to-date basis, Supreme Industries has declined more than 13 percent, underperforming the Nifty 50, which has fallen nearly 2 percent during the same period.
For Q3FY25, Supreme Industries reported a consolidated Profit After Tax (PAT) of Rs 187 crore, down 27 percent year-on-year. Revenue from operations rose marginally by over 2 percent to Rs 2,510 crore.
The company's EBITDA fell 18.5 percent year-on-year to Rs 309 crore, with the EBITDA margin contracting to 12.3 percent from 15.5 percent in the corresponding quarter last year.
"Plastic Pipe Systems business growth continues to be adversely affected due to the adverse PVC resin price scenario and demand from infrastructure spending not picking up as envisaged," said MP Taparia, Managing Director of Supreme Industries.
Follow our live blog for all the market action
"The business fared poorly in the third quarter as PVC prices in the open market were significantly lower compared to domestic producer prices, coupled with extended winter rainfall in South India and some Eastern states," Taparia added.
Supreme Industries noted that international PVC prices have stabilised at lower levels, and local producers are adjusting their prices closer to import parity. "However, there was a move from local producers to impose Anti-Dumping duty on import of PVC suspension grade resin. The decision from the Finance Ministry is awaited. Thus the PVC resin price trend remains in uncertain arena. Thus, company is not in a position to give specific volume growth guidance." the company said.
Supreme Industries is a plastics product manufacturer, operating across various segments, including plastic piping systems, cross-laminated films & products, protective packaging products, industrial moulded components, moulded furniture, storage & material handling products, performance packaging films, and composite LPG cylinders.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
