Strong revenue growth in Q4FY22 led by piping segment but EBITDA margin came in lower on account of higher raw material costs.
- The company reported revenue growth of ~23% YoY to Rs. 2557 crore led by ~16% volume growth YoY. Piping segment revenue grew 34% YoY
- Gross margins came in lower by 1097 bps YoY (down 412 bps QoQ) due to higher raw material cost. EBITDA margins declined 915 bps YoY to 15.3%
- PAT declined 28% YoY to ~Rs. 324 crore, tracking lower EBITDA
Key triggers for future price performance
- The government’s flagship ‘Nal Se Jal’ scheme (with an outlay of ~Rs. 3 lakh crore over the next five years) is a big booster for domestic plastic piping industry over the long term
- Rising contribution of value added product in overall topline (increased from 35% in FY18 to ~38% in FY22) to keep EBITDA margin elevated
- The company is planning a capex of Rs. 700 crore in FY23E to increase manufacturing facility by 11% YoY to ~8 lakh tonnes
- Model revenue CAGR of 11% led by piping segment revenue CAGR of 12%
For details, click on the link below: Link to the report
Shares of Supreme Industries Limited was last trading in BSE at Rs. 2011.45 as compared to the previous close of Rs. 1949.75. The total number of shares traded during the day was 14826 in over 2169 trades.
The stock hit an intraday high of Rs. 2033.00 and intraday low of 1912.05. The net turnover during the day was Rs. 29318574.00.