Q3 FY25 Supreme Industries Ltd. 📊

Q3 FY25 Supreme Industries Ltd. 📊

1. Financial Performance Overview:

• Revenue Growth: 💹 Revenue from operations increased from ₹2,449.10 crores in Q3 FY24 to ₹2,509.88 crores in Q3 FY25, marking a 2.48% year-over-year increase. The total income rose slightly by 1.98% from ₹2,469.81 crores in Q3 FY24 to ₹2,518.78 crores in Q3 FY25.

• Profitability: 💸 Profit after tax (PAT) decreased by 26.99% year-over-year from ₹256.17 crores in Q3 FY24 to ₹186.97 crores in Q3 FY25. This decline is reflected in a lower profit margin for the quarter.

• Earnings per Share (EPS): 📉 There was a decrease in EPS from ₹20.17 in Q3 FY24 to ₹14.72 in Q3 FY25.

2. Volume and Sales Growth:

• The company reported a 3% volume growth 📈 and a 2% value growth in plastic goods during the quarter, showing modest growth in its core business activities.

3. Segmental Performance:

• Plastics Piping Products: 🚰 Revenue increased from ₹1,643.65 crores in Q3 FY24 to ₹1,664.93 crores in Q3 FY25.

• Industrial Products: 🏭 Slight increase from ₹331.95 crores in Q3 FY24 to ₹332.36 crores in Q3 FY25.

• Packaging Products and Consumer Products: 📦 Also showed growth, indicating resilience across diversified product lines.

4. Expense Analysis:

• Cost of Materials Consumed: 📈 Increased significantly from ₹1,705.22 crores in Q3 FY24 to ₹1,826.92 crores in Q3 FY25, impacting the overall profit margins.

5. Key Performance Indicators (KPIs) for Investors:

• Profit Margin: 💰 The net profit margin decreased, as noted from the profit after tax figures.

• Valuation Ratios: 💸 At a current market price (CMP) of ₹4,038, and considering the Trail EPS of ₹80.4, the Trail Price to Earnings (Trail P/E) ratio is approximately 50.7, which is high. 

6. Near Term and Long Term Outlook:

• Near Term: 🕒 The near-term outlook might be cautious due to decreased profitability in the current quarter and increasing costs. Investors might look for management commentary on cost control and market expansion strategies.

• Long Term: 🚀 The company’s ability to maintain a diverse product range and slight growth in volumes suggests resilience. Long-term growth will depend on continued innovation and market expansion, especially in emerging market segments.

Investor Perspective:

• Investors should monitor the company’s expense management and segmental growth closely, especially the plastics piping segment which is a significant revenue contributor. The valuation at current levels suggests high expectations while growth is lower, which requires sustained performance improvements to justify.

This analysis provides a snapshot of Supreme Industries' performance with implications for both short-term and long-term investment perspectives, taking into account current market conditions and internal financial metrics.