SUPREMEIND - Supreme Industries Ltd. Share Price

Q1: "So, this quarter Wavin volume was how much?"

A1: Wavin is part of our overall sales, but we cannot isolate their volume specifically. Post-acquisition, we have integrated over 180 of their customers. They produce similar products, so the growth of about 16% we reported includes contributions from the Wavin acquisition as well.

Q2: "Given that we are maintaining the piping volume growth of 15% to 17%, how confident are we about this?"

A2: We are confident in our guidance because demand typically surges post-harvest in agriculture, with March marking the start of this cycle. Given the early signs of demand, we believe we can meet or even exceed our growth targets in the fourth quarter.

Q3: "What are the expectations for margins, especially in FY'26-"˜27?"

A3: For FY'26, we have revised our margin guidance to 13.5% to 14%. As for the fourth quarter, we're aiming for a margin in the range of 15%-16%, driven by volume increases and stabilized input costs, while also accounting for some improvements in gross margins.

Q4: "Can you share the capacity numbers for all three verticals?"

A4: For FY'27, our total capacity for the plastic piping segment will reach 1 million tons. The capacity for our other segments is around 12.2 million tons, although there haven't been significant additions in those areas recently.

Q5: "Can you quantify the inventory loss due to PVC price fluctuations?"

A5: Over the first nine months, we estimate that we've faced an inventory loss in the range of Rs. 100-120 crores due to declining PVC prices, which has impacted our operating margins, guiding us to lower revenue expectations for the year.

Q6: "How do you expect the demand for piping segments to evolve?"

A6: The demand is returning to normal levels, with January seeing improvements compared to December. We're entering a season where demand typically rises significantly for our plastic piping products. Overall, we expect a solid demand trajectory.

Q7: "What can you share about your financing costs and other income for future quarters?"

A7: Our finance costs have risen temporarily due to short-term borrowings for capex. Moving forward, we expect them to normalize as these debts are settled, and we anticipate higher other income as we deploy surplus funds more effectively starting next fiscal year.

Q8: "What do you expect the topline to be for FY'26 now?"

A8: We are now guiding for a topline of Rs. 11,000 to 11,500 crores, reduced from our earlier estimate, due to lower polymer prices, impacting our overall sales. The decline in raw material costs which affect revenue is driving this revision.

Q9: "Can you elaborate on the growth expectations in the industrial products segment?"

A9: The industrial component supplier remains impacted due to a challenging market, particularly in the appliance sector. However, segments like material handling and composite cylinders are seeing better demand, helping to offset challenges in the overall industrial division.

Q10: "What's the long-term outlook for PVC margins?"

A10: Under stable PVC prices, our goal remains to maintain operating margins in the long-term range of 14% to 15%. The increasing share of value-added products will also play a crucial role in driving margin improvements going forward.