BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Supreme Industries Ltd.’s Q4 FY22 performance was below our expectations with blended volumes increasing 15.6% YoY and revenues increasing 22.8% YoY, driven by a recovery in agri demand for plastic pipes (pipes volume growth of 27% YoY on a tepid base) and higher YoY realisations.
Owing to a sharp decline in gross margins (down 412 basis points QoQ/down 10.7% YoY), operating margins stood at 15.3% (down 103 bps QoQ/down 916 bps YoY), resulting in Ebitda /profit after tax decline of 23.2%/28.1% YoY.
As per management, March 2022 saw historically high dispatches for plastic pipes aided by a pick-up in agri pipe segment.
Going ahead, Supreme Industries is optimistic of strong demand, backed by housing and agriculture segment. Management has guided for at least 15% plus volume growth in FY23 driven by the piping segment and a tepid base.
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