Q1FY22 Result Update - Supreme Industries - ICICI Direct

Operating performance was a miss as revenues came in lower than expected.

- Reported revenue growth of 27% YoY to Rs. 1342 crore (down ~36% QoQ) driven by higher realisation

- Gross margins up 704 bps YoY to 35.5%, drove EBITDA margins up 543 bps YoY to 16.5%

- PAT increased 4x YoY to Rs. 170 crore on a favourable base and better margin

Key triggers for future price performance

- 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 ~40% in FY21) to keep EBITDA margin at elevated level

- Overall manufacturing capacity to grow at a CAGR of 7% to 8 lakh tonnes with an investment of ~Rs. 850 crore in FY21-23E

- Model revenue CAGR of 12% led by piping segment revenue CAGR of 17%

For details, click on the link below: Link to the report

Shares of SUPREME INDUSTRIES LTD. was last trading in BSE at Rs. 2098.05 as compared to the previous close of Rs. 2104. The total number of shares traded during the day was 8275 in over 1815 trades.

The stock hit an intraday high of Rs. 2144 and intraday low of 2075.5. The net turnover during the day was Rs. 17504774.

Source : Equity Bulls

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