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What is the story about?
Shares of Supreme Industries Ltd.
fell as much as 3.5% on Monday, October 26, in response to its September quarter results, which saw the company refrain from giving full-year guidance on the volume growth front.
During the first half of the current financial year, Supreme Industries' Plastic Piping Division saw volume growth of just 2% compared to the same period in the previous fiscal. The management, during the June quarter, had reiterated for volume growth in this business to be between 15% to 17%, and overall volumes to be between 12% to 13% for the company.
In an interaction with CNBC-TV18, the company's Chairman & Managing Director MP Taparia said that the overall volume growth now for the full year will be 10%. For the plastic piping division, Taparia sees volume growth of 13%, compared to the 15% to 17% projected earlier.
"In such an uncertain geopolitical situation, precise growth forecast is not feasible, but encouraged by the 24% volume growth achieved in the second quarter, the company aims to continue to the momentum and achieve better growth in the full year," Supreme Industries said in its statement.
For the September quarter, Supreme Industries reported revenue growth of 40.4% from last year to ₹3,361.3 crore, compared to ₹2,394 crore last year. Expectations from analysts stood at ₹3,224 crore.
Net profit for the period increased by 58.8% on a year-on-year basis to ₹262 crore from ₹165 crore last year. However, a consensus estimate of analysts had pegged the figure to be ₹304 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹431 crore, lower than estimates of ₹482 crore and 44.6% higher than the same quarter last year.
EBITDA margin expanded by 40 basis points to 12.8% from 12.4% last year, but well below consensus expectations of 15%.
Shares of Supreme Industries are trading 3% lower after the results announcement at ₹3,290. The stock is down 6% so far this year.
During the first half of the current financial year, Supreme Industries' Plastic Piping Division saw volume growth of just 2% compared to the same period in the previous fiscal. The management, during the June quarter, had reiterated for volume growth in this business to be between 15% to 17%, and overall volumes to be between 12% to 13% for the company.
In an interaction with CNBC-TV18, the company's Chairman & Managing Director MP Taparia said that the overall volume growth now for the full year will be 10%. For the plastic piping division, Taparia sees volume growth of 13%, compared to the 15% to 17% projected earlier.
"In such an uncertain geopolitical situation, precise growth forecast is not feasible, but encouraged by the 24% volume growth achieved in the second quarter, the company aims to continue to the momentum and achieve better growth in the full year," Supreme Industries said in its statement.
For the September quarter, Supreme Industries reported revenue growth of 40.4% from last year to ₹3,361.3 crore, compared to ₹2,394 crore last year. Expectations from analysts stood at ₹3,224 crore.
Net profit for the period increased by 58.8% on a year-on-year basis to ₹262 crore from ₹165 crore last year. However, a consensus estimate of analysts had pegged the figure to be ₹304 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹431 crore, lower than estimates of ₹482 crore and 44.6% higher than the same quarter last year.
EBITDA margin expanded by 40 basis points to 12.8% from 12.4% last year, but well below consensus expectations of 15%.
Shares of Supreme Industries are trading 3% lower after the results announcement at ₹3,290. The stock is down 6% so far this year.
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