Supreme Industries Ltd (SUPREMEIND) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (DAM Capital Advisors Limited): Ladies and gentlemen, good day and welcome to the Supreme Industries Q2 FY '27 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*", then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aseem. Thank you, and over to you, sir.
Aseem (DAM Capital Advisors Limited): Thank you. So, good evening and welcome everyone on Supreme Industries Q2 '27 earnings call. We have the senior management of the company who will take us to the quarter performance, post which we'll open it all for questions. Thank you, and over to Mr. Taparia for his opening remarks.
M. P. Taparia (Supreme Industries Ltd): Thank you, Mr. Aseem. And thank you all very much. I am M. P. Taparia, Chairman and Managing Director of Supreme Industries Limited. I, along with my colleague Shri
R. J. Saboo (Supreme Industries Ltd): I, R.J. Saboo, Vice President (Corporate Affairs) and Company Secretary, welcome the participant, were participating in the discussion of unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2026. The standalone results and consolidated results are already with you. I will brief on company product operating performance and other highlights. The company sold 341,991 ton of plastic goods and achieved a revenue from operation of Rs. 6,079 crore during the first half year of the current year against sales of 338,224 ton and net product turnover of Rs. 5,003 crore in the corresponding half year of the previous year, achieving a volume and product value growth of about 1% and 22% respectively. The standalone operating profit and profit after tax for the half year of the current year amounted to Rs. 829 crore and Rs. 487 crore as compared to Rs. 617 crore and Rs. 371 crore respectively for the corresponding period of the previous year, achieving an increase of 34% and 31% respectively. The business scenario of product segment of the company for the second quarter ended 30th September 2026 as compared to the corresponding quarter of previous year has been as under: Plastic Piping System business grew by 24% in volume and 42% in value terms. Packaging Product segment grew by 3% in volume and 22% in value terms. Industrial Product segment business grew 13% in volume and 49% in value terms. Consumer Product segment business degrew by 14% in volume and grew by 2% in value terms. The overall turnover of value-added product increased to Rs. 1,476 crore during the current second quarter as compared to Rs. 1,072 crore in the corresponding quarter of the previous year, achieving a growth of 38%. The operating environment stabilized in the second quarter after the unusual polymer price volatility of first quarter. Geopolitical developments in West Asia remain a source of uncertainty, while the minimum import price on suspension-grade PVC resin and withdrawal of custom duty exemption have reduced volatility. In Plastic Piping System, volume grew by 24% in second quarter, bringing first-half volume growth of about 2% year-on-year. We continue to standardise business through value-added product like fire piping system, gas piping system, electrofusion fittings, premium range of bath fittings, industrial valve, and silent pipe system made from polypropylene and wider market reach and integration of the former Wavin business. Our uPVC Windows and Door business is seeing increasing encouraging market acceptance and expanding dealer network. Capacity utilization in composite cylinder is improving gradually as procurement has begun on at all three oil marketing companies. Our industrial material handling and packaging business continue to perform satisfactorily, although consumer product segment remained under pressure due to polymer price upward march. Work on new units at Bihar, Jammu, Erode, Puducherry, and Malanpur along with brownfield expansion at various sites is progressing as planned. We'll continue to fund these investments through healthy cash flows and internal accruals while maintaining financial discipline. Looking ahead, the geopolitical environment making a precise forecast is quite difficult. Nevertheless, encouraged by second-quarter performance, we expect company-wide volume growth of around 10% for fiscal year '27 despite the big growth during big degrowth during first quarter. We remain focused on sustainable long-term growth through diversified product portfolio,
M. P. Taparia (Supreme Industries Ltd): strong brand, extensive distribution network and continuous focus on operational excellence. In a brief and overall summary for the quarter and half year ended under reference. Thank you for patience. Now, I and my colleague Shri P.C. Somani and Shri R.J. Saboo are available to reply to various queries which will be raised by all of you. Thank you very much.
Moderator (DAM Capital Advisors Limited): Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah (Dolat Capital): Hi, sir. Just a couple of things to understand. Sir, now particularly in the plastic piping where we are saying that and we have reduced the guidance from 15% to 17% to now 13%, but considering the muted growth in the 1H, even though to achieve this 13%, we need to do a kind of a 22% kind of a growth in the second half, which is kind of a 4,12,500 uni MT versus in 1H, we have done 270 3 2,74,00, lakh. so do we think that it is doable? Currently till in October, are we seeing such kind of a growth that are we are we confident or there is a a possibility that we can further downward revise our this volume growth 13% to maybe a lower number going forward?
M. P. Taparia (Supreme Industries Ltd): Going as the present situation, we do not expect any lower number to be announced again. Because in the month of October, in the first 25 days, we have maintained 23% volume growth. This this lower growth forecast from 15% to 13% is a result of the first quarter working, where we had a degrowth of around 13.5% in plastic piping system due to deep reduction in the price in the month of April, which was unprecedented. So, we do not see any such reason today because fortunately, our major share come from PVC and CPVC and they are not that much linked to the price volatility which are caused by the crude price. So, we are quite comfortable and fortunately, we've got capacity available and we've got properly coverage of raw material also. So, we don't see any constraint either from capacity or from availability of raw material.
Shravan Shah (Dolat Capital): Got it, sir. And sir, in this quarter Q2, have we seen any kind of a inventory loss? And related to that, currently in terms of that the channel level, the inventories are are at normal level and and at the same time, in terms of the another thing is on the pricing front, have we seen the price hike in the CPVC also in the month of October?
M. P. Taparia (Supreme Industries Ltd): Now, PVC price had gone up. Accordingly, CP price had gone up, but gone up to a reasonable level which can be easily affordable to our customer. So, we have no problem. And inventory level we cannot say, but we think the customers are are now remaining very cautious. They are keeping the inventory to minimum level and we are making sure that whatever order we receive, because of our huge capacity and so many site, we are able to deliver most of their order within 48 hours.
Shravan Shah (Dolat Capital): Okay. And there is no inventory gain or loss in the Q2?
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