The Supreme Industries Limited (NSE: SUPREMEIND) Q3 2025 Earnings Call dated Jan. 20, 2025
Corporate Participants:
Aasim Bharde — Analyst
Mahaveer Taparia — Managing Director
Unidentified Speaker
Analysts:
Ritesh Shah — Analyst
Shravan Shah — Analyst
Sneha Talreja — Analyst
Rahul Agarwal — Analyst
Navid Virani — Analyst
Bhavin Pande — Analyst
Keshav Lahoti — Analyst
Sonali Salgaonkar — Analyst
Praveen Sahay — Analyst
Unidentified Participant
Swapnil Upadhyay — Analyst
Rishab Bothra — Analyst
Varun Jain — Analyst
Utkarsh Nopany — Analyst
Amit Purohit — Analyst
Vipul Kumar Shah — Analyst
Deepak Lalwani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Supreme Industries Q3 FY ’25 Earnings Conference Call hosted by DAM Capital Advisors. 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 star 10 0 on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Aasim from DAM Capital Advisors. Thank you, and over to you, Mr. Aasim.
Aasim Bharde — Analyst
Yeah. Thanks. Good evening. Welcome everyone to Supreme Industries Q2 Q3 ’25 results call. We have with us the senior leadership team of the company, who will take us through the quarter performance and post which we’ll open the call for questions. Thank you, and over to you.
Mahaveer Taparia — Managing Director
Thank you very much. I’m MP, Managing Director of the Supreme Industries Limited. I, along with my colleagues, CFO; and C. R.J. Sabu, Vice-President, Corporate Affairs and Company Secretary, Secretary welcome all the participants who are participating in the discussion of the unaudited chain alone and consolidated financial result for the quarter and nine-month period ended 31st December 2024. The extend our results — consolidated results are already with you. I will give brief on company product operating performance and other highlights.
The company sold 162,733 ton of plastic goods and achieved net product turnover of INR2,488 crores during the 3rd-quarter of the current year against sale of 158,025 ton of plastic goods has achieved net product turnover of INR2,429 crore in the corresponding quarter of previous year, achieving volume and revenue growth of around 3% and 2% respectively. The company sold over 74,645 ton of plastic goods achieved net product turnover of INR7,336 crores during nine months of the current year, against sales of 44,332 ton and net product turnover of INR7,043 crores in the corresponding nine months of previous year, achieving volume and product value growth of around 7% and 4% respectively.
Consolidated operating profit and profit-after-tax for the 3rd-quarter of the current year amounted to INR331 crore and INR187 crores as compared to INR400 crores and INR256 crores respectively, the corresponding quarter of the previous year, resulting in a decrease of 17% and 27% respectively. The consolidated operating profit and profit-after-tax for the nine months of the current year amounted to INR1,103 crore and INR665 crores as compared to INR1,123 crore and INR715 crores, crores respectively for the corresponding period of the previous year, resulting in a decrease of 2% and 7% respectively.
The business scenario of all the product segment of the company for the 3rd-quarter ended 31st December 2024 as compared to the corresponding quarter of previous year has been under Plastic piping system business grew 4% by volume and 1% in. Packaging Product segment business grew 9% in volume and 13% in. Industry product segment business degrew by 5% in volume and remained at flat level in value track. Products segment business degrew by 7% in volume and 5% in value truck.
The overall turnover of value-added product increased to INR961 crore during the 3rd-quarter of the current year against INR853 crore in the corresponding quarter of the previous year, achieving growth of around 13%. The company continued to remain gas-free and having a cash surplus of INR290 crores as on 31st December 2024. Business outlook. The plastic path system media growth continued to be adversely reflected due to adverse EVC price scenario and demand spend not picking-up as. Considering better demand in the second-half of the year in the segment served by the company, the company had earlier initial 16% to 18% volume growth for the current year for the plastic piping system.
The plastic pipe business was affected in the 3rd-quarter as PVC prices in the open-market were quite low compared to domestic prices and due to exchange winter rainfire in South India and some Eastern states. The company experienced good demand from agri and housing segment for the last quarter. The IT India distribution pipeline has destocked, seeing the continuous in PVC passage as the passenger reached a low-level, the company expects good demand going-forward in current quarter.
The company also expect some improvement in infrastructure demand as this being the last quarter of the financial year. International UC prices have stabilized at a low-level. Local makers are reducing their price to import territory. However, there was a move from local producers to import anti-WE duty on import of PVC suspense in aging. The decision from the finance minister — she. Just the PVC agent priced remains an uncertain area. That’s an area. This company not in a position to give specific volume growth guidance. However, as several brownfield expansion of capacities are in-place, the company with a large portfolio of SKU in-system is expected to grow 8% to 4% more than the country growth in plastic pipe system during the year.
Our brownfield expansion at various locations of plastic piping system are progressing smoothly. The company is well-positioned to capture to increased demand of the product, increased available capacity. The company has reached annual capacity of 850,000 ton as on December 2024 and with the completion of our expansion plan undertaken in-hand, total install capacity of the pilo system business vertical should reach 900,000 ton by end of fiscal year 2024 to 5. Five. Three new greenfield plants for plastic division at Jammu, Biyar and Pradesh shall be checking up our execution in the coming financial year.
Land and all the three in the company’s position and detailed plan for product and capacity are being worked out. Equipments have arrived for property silent system, which have a large in collaboration as of during first-quarter of fiscal year 25 — Video 25,. The newly introduced piping system and single valve pipe are witnessing encouraging response. Plans to increase SKU and in bar switching and wear segment are progressing well. Until now, the division to 629 SKU per from 421 SKU at the beginning of the year. The company’s plastic packaging system is servicing 40 different application-based system and continue to explore to add more value-added system. The company continues to remain focused, invest and enlarge a product basket business and to increase the range of value-added product. The company now has a SKU basket of 14,234 number in-system business vertical.
The company has orders for our equipment and the work on CV construction is going-in full string at a new site can’t put Dihad in UP for making windows. In the first phase, companies plan to put entire window making facility and cater to customers in Utte, Pradesh, and NCR area. The company expects to launch and supply window system windows in the first-half of fiscal year two — fiscal year ’26. The business across is showing improved performance with better capacity utilization.
The division has also participated in institutional business and orders which are under execution. Resultantly, the division expect about 20% volume growth in this business for the year with improved profitability. Price have been successfully carried out for the newly developed close plastic film and September thereof have been sent to laboratory for testing and certification that will as potential customer for their evaluation.
The company continued to expand its land and introduced various new model of and cabinet in its furniture segment. 12 new models have been introduced in the first-nine months of fiscal year ’22 fire. The division continues to add so room to improve awareness of the range of premium product. Total numbers of showroom at 337 by end of December to 308 as on 31st March 2024. Focus on scenery distribution channel and adding more retail outlet continues.
In the industry segment business, business conditions remain moderate. However, company expect demand scenario to further improve its sector of home appliance and white goods constitute large part of its business is also working to expand its customer-base and develop the business in new structure with a revival in the business scenario various appliance customers that division expect better prospect going-forward.
The material lending division remains focused on introducing new product and also investing in new machine and modes. Model players are seeing good growth and continues to add new product in its range of players the swing., the entire range of are being meant to be one located in Maharashtra. Going-forward, the dividend plan to increase period meant 15 location and likely to commence for March. Equipment for guard board shall arrive by end of first-quarter of fiscal year 2026 and likely to be in-production in July-September quarter.
The division continues to strive to enlarge a customer-base and product portfolio leaving the way for moderate growth. Composite LPG cylinder division continued to cater to existing overseas customers and asked to participate in various export inquiry, supply against new vector of issued for Ken KG cylinder from Indian Oil Corporate Limited are taking place regularly and shall be completed by February 20 of ’25.
The division expect to issue order for the quantity and continuous existing LOI. While design of 14.2 kg cylinder for all oil marketing companies is under progress and execute generate good business during fiscal year 2026 and thereafter commercialization of newly dual cylinder likely to happen during this quarter of the year. The particular packaging division has enhanced the capacity utilization and focus on developing customized solution and it is working well.
The division continuously engaging cervication capacity in various geographies to increase demand. Expansion activities undertaken are progressing well and shall be fully in-place by end of fiscal year 2025. Negotiation for a suitable location for a new greenfield site near the port in the Western region to capture to export opportunity and domestic demand has been initiated and likely to be calculated the first-quarter fiscal year 2026.
The Performance packaging division continued to utilize its capacity optimally and work on improved product mix and post activity value-added product with minimum investment. Export opportunity remains a focus area for better value addition. Looking at the business outlook and opportunity, the company’s plan has committed very-high capex including carry for commitment of around INR1,500 crores this year.
Total cash outflow towards capex has been up till now INR718 crore and likely to reach around INR1,000 crores for the year. Entire capex will be funded from interaccrual. This is a brief and overall summary for the quarter and nine months ended in your conference. Thanks to my questions. Now I and my colleagues and RJ Sabu are available to reply to various queries by all of you. Thank you very much.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone 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’ll wait for a moment while the question queue assembles. The first question comes from the line of Ritesh Shah with Investec. Please go-ahead. Mr. Shah, please go-ahead with your question.
Ritesh Shah
Yeah, hi, sir. Am I audible?
Mahaveer Taparia
Yeah. You’re audible.
Ritesh Shah
Yeah, hi, sir. Thanks for the opportunity. Sir, my first question was on window profiling business, what you indicated. What is the sort of capacity and the ramp-up that we are looking from this particular initiative of ours?
Mahaveer Taparia
First, I must clarify that we are not going to share profile we are going to supply completely window and our annual capacity is 5,000 ton of UC profile per annum.
Ritesh Shah
Correct. Sir, can this 5,000 go to 20,000, IN 30,000? Is the market size that big and do we aspire to be there?
Mahaveer Taparia
I can say today more than 120,000 ton. Thank you. We have a dream to be a big player.
Operator
Thank you. Mr. Shah, I would request you to rejoin the queue for more questions. Next question comes from the line of Shah with Dolat Capital. Please go-ahead, sir.
Shravan Shah
Hi, thank you, sir. Sir, just to correct me if I’m wrong. So now we are saying for volume growth for pipe segment is 15% to 16%. So nine months we have done just a 7.8%. So ask rate for the 4th-quarter is close to 30% to 34%, so and are we — are we seeing that kind of a traction in the month of January and confident that we can deliver this kind of a number?
Mahaveer Taparia
If the thing remain as they are remaining today, we are very confident. I can just recall you what I told last-time also that in the year ’22, ’23, we had 37% volume growth in second-half compared to first-half. This year, the 3rd-quarter of the second-half was lower. There is a huge destocking taking pitch in the entire value chain, be it is wholesaler, be it semi, wholesaler, be it is. And the demand where prices are so low, it is very much affordable product. And fortunately, we got capacity available, we’ve got so many new system operating and we got more than 14,000 SKU. We are very confident there will be no checks check, we are going to achieve the number what we are telling you.
Shravan Shah
Okay. Okay, got it. And sir, in terms of the capacity expansions that we are saying that 9 lakh tonne by this year and the three places, Jammu, Bihar and MP. So there, how much capacity are we looking at and how much will likely to come in FY ’26?
Mahaveer Taparia
And when we plan — when we come with our final accounting here on April, can, we will you the plan for the three new location. As on today, we are going to land in our position. The plan, what capacity, what product we are going to make gear will be announced only on 21st April, which is our meeting to close the account of the year.
Operator
Thank you. Mr. Shah, please rejoin the queue for more questions. Next question comes from the line of Sneha Talreja with Nuvama. Please go ahead.
Sneha Talreja
Good evening, sir, and thanks a lot for the opportunity. Just to clarify the last previous participant’s question, did we mention so our ask rate according to your interview is around 24% on quarter-four numbers. Are we confident on the base of 41% growth of last year that we can still do 24% plus?
Mahaveer Taparia
Yeah. And what your number even not the annual thing happens, we will be achieving what we attracted.
Sneha Talreja
So secondly, sir, just wanted to understand the inventory loss that you’ve mentioned on the interview, what is the quantum of the same?
Mahaveer Taparia
The right thing about inventory loss, we should talk in April, but as on first-nine months the inventory loss was not only in PVC, it was in policy also and which was in excess of INR100 crores in first-nine months. But correctly inventory lows or again, we will talk in a little bit bullish.
Operator
Thank you, Mr. Talreja. Please rejoin the queue for more questions. Next question comes from the line of Rahul Agarwal from Asset Management. Please go-ahead.
Rahul Agarwal
Sir, good evening. Two questions I had first. Sir, first question was, could you help us understand where-is the demand so weak? Is it housing, is it agri or is it infrastructure?
Mahaveer Taparia
Whereas demand is weak, was weak. And in 3rd-quarter demand was very weak. If a 3rd-quarter — first is that the demand was wiped out and demand was also not so robust because the demand was there, but it was all and infra demand is not to jump.
Rahul Agarwal
So that’s what I was asking, is it weaker in-housing or agri or infrastructure?
Mahaveer Taparia
Agri demand as I told you due to rainy, exchanges, any season, demand was very poor, housing was low, but not so low and infra demand definitely was non-existent. But we are playing infra.
Operator
Thank you, Mr. Agarwal, please rejoin the queue for more questions. Next question comes from the line of Navid Firani with Research. Please go-ahead.
Navid Virani
Hello, sir. Am I audible?
Mahaveer Taparia
I’m very audible.
Navid Virani
Yes, sir. So I had one question around the rapid cash depletion, which I’m witnessing. So we had almost INR1,180 crores worth of cash-in Q4 FY ’24 at the end. But currently we just have INR300 crores of cash with us. I understand that we are going through a capex phase, but I still feel there is some other place where the cash is getting sucked up. Is it fair to assume that we are sitting on large inventory pile right now, which is where the cash is?
Mahaveer Taparia
We have very huge inventory pipeline, very inventory with us.
Navid Virani
Okay. So we are confident that the upcoming demand will help us — us even in each quarter.
Operator
Thank you, Mr. Virani, please rejoin the queue for more questions. Next question comes from the line of Bhavin Pande with Investment. Please go-ahead.
Bhavin Pande
Hi, good evening. Am I audible?
Mahaveer Taparia
Yeah. Audible?
Bhavin Pande
Yeah. So what is — what is the outlook of PVC prices and revival of demand? Thank you.
Mahaveer Taparia
So demand is now — there is no issue of no demand of PVC pipe and PVC pipe, we don’t see already it come to a very low-level, which only trended now crude price going up, rupee going weak and the local makers are losing money at the current price, either duty may come or local America will find difficulty to go sharing at such a low-price.
Bhavin Pande
Okay. That’s helpful. Thanks a lot, sir.
Operator
Thank you. Next question comes from the line of Keshav Lahoti with HDFC Securities. Please go-ahead.
Keshav Lahoti
Hi, thank you for the opportunity. So what is the — how is the thing going on OPVC pipes and how are the expansion plan? Whatever we have earlier envisaged 30 KMT capacity by FY ’27 and is it running on?
Mahaveer Taparia
No, actually one-line now we were three line now and three line our capacity gone up now to annually around 9,000 tonne per year.
Keshav Lahoti
Okay. Got it. And last question, sir, any guidance on the margin side for this quarter for Q4?
Mahaveer Taparia
Operation market is margin quite good.
Keshav Lahoti
For the company.
Mahaveer Taparia
For the company, yes, company we anticipate this year’s margin may be between 13.5% to 14% overall.
Operator
Thank you, Mr. Lahoti, please rejoin the queue for more questions. Next question comes from the line of Sonali S with Jefferies Group. Please go-ahead.
Sonali Salgaonkar
Sir, thank you for the opportunity. Sir, my question remains on the demand. Have you seen or are you seeing the channels restocking again? And also how were the — how was the demand in the first 20 days of January across segments?
Mahaveer Taparia
Demand my infra demand should not come up.
Sonali Salgaonkar
So restocking, are you seeing that?
Mahaveer Taparia
Demand is there for — and demand is there for housing? Demand is now shorted.
Sonali Salgaonkar
Sir, could you share the month-on-month volume numbers for October, November, December, if that is possible?
Mahaveer Taparia
That is not possible.
Operator
Thank you, Mr. Sonali, please rejoin the queue for more questions. Next question comes from the line of Pravin Sahai with Prabhudas Lilladher Capital. Please go-ahead.
Praveen Sahay
Yeah. My question is again on the volume and what you are guiding for a 30% plus for a Q4. So one thing you had highlighted destocking is very-high at all the channels level. So can you give some color on the comparison at what level of inventory earlier versus now it is at?
Mahaveer Taparia
The machine, general inventory level at what level they are? Any inventories are high, we don’t know of our competition. We don’t know. We say we would more inventory. So we are confident that we will have adequate stock and it will be capacity. What do you want your…
Praveen Sahay
No sir. No, I am asking related to the channel. As you had mentioned have…
Mahaveer Taparia
So many distributor HLR, we don’t have right. We will the 100,000. I don’t know what is the inventory with them. But we know that they are buying quite low. They — whenever they orders, they are after us to supply as quickly as possible. We show that they are having very low inventory. And when the price trend is going down, no reason for them to keep inventory. We are available to make this supply. We told them now we are going to go down. We go down.
Praveen Sahay
Okay, okay. Okay, sir. Sir, last question related to ATD. As you had mentioned that the finance Ministry awaits a for the implementation of ATT. So what’s your take on when that’s going to happen in March when it’s going to happen?
Mahaveer Taparia
I don’t know. I think that is I’m too smart person. I have no idea, no clue. You only know that the General remedy have recommended some provisional duty on five countries various companies, which have been to them in beginning of November, now already more than 80 days past. Now when the Finance ministry will issue notification or they will not issue I have no idea.
Praveen Sahay
Thank you, sir.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Srinath V with Capital. Please go-ahead.
Unidentified Participant
So I want to understand how the CPVC business is growing — is it growing higher than the 4% volume growth we saw in the piping division? And also want to understand that there is already an anti-dumping duty on CPVC. Is that market a little more stable than PVC? Are you know retailers holding inventory and are we seeing primaries happening for us? Thank you, sir.
Mahaveer Taparia
Sir, CPVC JVJ, duty import only on China and company in Sal Korea, they were not a large supplier and they were not even large supplier to our company. The major supply coming from USA and Japan and Thailand and now they do quite a good capacity put in locally also. So we are no region of anything to do with the duty and CPE market definitely grown better. Our company grown also in excess of 20% of CPVC.
Unidentified Participant
Okay, sir and how you see given that the 4th-quarter is normally the construction heavy quarter from a residential real-estate, what is the broad outlook on CPVC now going into Q4 and next year, sir?
Mahaveer Taparia
Maybe Q4 will be further better.
Unidentified Participant
Okay, sir. Thank you. I’ll get back into the queue.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Ashish Kuranna with Ank Capital. Please go-ahead.
Unidentified Participant
Good evening, sir. Sir, I had a question on this announcement that we made last quarter about having a 60 cascade capacity on CNG type for cylinders. So you said that in the announcement, sorry, it was said that the targeted revenue can be INR60 crores. So just wanted to understand that it was a testing of what is kind of the thing or we see a big market opportunity there in terms of value.
Unidentified Speaker
So our cylinder is for cascade application, refilling the CNG stations at petrol pump. It can be supplied only in the cascade form since cascade of 30 cylinders we are now stage of building up the cascade and once we supply to any of the petroleum company then we will see success cylinder Percy has been duly approved all certification place but the commercialization will take place only by end of…
Unidentified Participant
Hello, audible, sir.
Mahaveer Taparia
The reply is complete. Can you ask any other question?
Unidentified Participant
Yes. So I just want to understand that in LPG cylinders, we haven’t seen that much traction. But in CNG cascades, do you expect it to be different that — because probably there could be some operating cost benefits for our end clients. So do you see that it probably will have a bigger market than LPG cylinders?
Unidentified Speaker
So nowadays, you see at every petrol pump, there is a CNG station. So those CNG stations are filling the fuel through CNG cascade replacement — replenishment. So our cylinder, which is a new reserve cylinder would be used in the CNG cascade only. It is more of the vehicles are moving either electrical or gas, there is a good market potential for the CNG cylinders.
Unidentified Participant
Got it, sir. This is helpful. Thanks a lot.
Operator
Thank you. Next question comes from the line of Swapnil Upadhyay with Motilal Oswal Financial Services Limited. Please go-ahead.
Swapnil Upadhyay
Thank you for the opportunity. Sir, what were the reasons for contraction in margins and what was the reason for increase in raw-material cost quarter-on-quarter? Can you please elaborate…
Mahaveer Taparia
Raw material costs are going down, no increase in revenue.
Swapnil Upadhyay
Raw material cost as a percentage of sales, sir?
Mahaveer Taparia
Because our margins have to go down because the open-market price of PVC lower than company price. So shareholder we started ignoring the open-market price which are produced locally and we were trying to make our selling price grow to import penalty. Our percentage of raw material will go up.
Swapnil Upadhyay
And what was the reason for contraction in EBITDA margin, especially in plastic pipe segment?
Mahaveer Taparia
Yeah, margin will come down now when I’m losing money on the local purchase. And local purchase, we don’t want to give up. We will go on buying local material. We can’t work our company based on imported materials and local production is available. Local producers are very important supply for us.
Swapnil Upadhyay
Okay. Thank you, sir.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Rishab Bothra with Anand Rathi Shares and Stock Brokers. Please go-ahead.
Rishab Bothra
Hello. Sir, just wanted to understand, we mentioned that our capacity will reach by 9 lakh tons by March ’25. How is the growth plan for FY ’26 and what kind of utilization can we expect?
Mahaveer Taparia
FY ’26 we will in upgrade.
Rishab Bothra
So this 9 lakh is only brownfield expansion. Greenfield will come up thereafter.
Mahaveer Taparia
Yes. 910 KPC will be available on first appeal to buy.
Rishab Bothra
Okay. Okay. Got it. Got it. And with respect to the LPG, I think Supreme and Time Techno are the two players currently. Are there any other players who are supplying to those composite?
Unidentified Speaker
As of no — as of now, no.
Mahaveer Taparia
Not to our knowledge.
Rishab Bothra
And lastly, what is the market size of this cylinder and how much market-share do we want to gain?
Mahaveer Taparia
More than 40 million cylinder, more than 40 million sir.
Rishab Bothra
Thank you, sir. I’ll come back-in queue.
Mahaveer Taparia
Our capacity is bought together not even 2 million cylinders.
Rishab Bothra
So we want to scale-up the capacity in also quickly to gain market share?
Mahaveer Taparia
Going on intention on the demand coming from the old marketing companies, yeah.
Rishab Bothra
Okay. I’ll come back-in queue, sir. Thank you.
Mahaveer Taparia
We decide how much they want to switch-over from the metal to plastic. Okay. Plastic material — sorry, yesterday in Kum Mela, the took place which was ceiling there. Got it. It would not have exploded. It would be burned out. The damage would have been minimal.
Rishab Bothra
So will lobbying help and consumer awareness for marketing campaigns help out?
Mahaveer Taparia
[Indecipherable].
Rishab Bothra
Okay. Fine. Thank you.
Operator
Thank you. Next question comes from the line of Navid Virani with Bastian Research. Please go-ahead.
Navid Virani
Hello. Thank you for the follow-up opportunity. I just had one more question. Sir, can you help us with the number as to out-of-the 100%, what percentage of PVC are we sourcing domestically versus imports?
Mahaveer Taparia
I think maybe 45%, 50%, more than 50%, 50%, definitely local.
Rishab Bothra
Okay, okay. That’s helpful. Thank you. Thank you so much.
Mahaveer Taparia
Yeah, we are there locally. I think we are maybe the number one customer of the Indian producers.
Rishab Bothra
Perfect. Thank you.
Operator
Thank you. Next question comes from the line of Rahul Agarwal with Ikigai Asset Management. Please go-ahead.
Rahul Agarwal
Yeah. Thank you for the follow-up opportunity. Sir, the question last-time I was asking was not — couldn’t get a proper answer. What I was trying to know was, infrastructure, the contribution to Supreme is very low and housing you said was okay and agri was bad because of extended rains. January, you’re saying housing agri both picked-up. So just wanted to know if infra contribution is so low, 3% volume growth is — was there any other reason of this demand not really picking-up?
Mahaveer Taparia
Now demand each quarter will be quite okay. No issue. The demand will be good from demand will good from housing. There’s no issue this quarter start stocking also and the demand will come from every segment. Now the crops are getting harvested, the demand will come for key also and from housing also. There are so many systems, so many SKUs, new distributor addition, we don’t see any problem in this quarter.
Rahul Agarwal
Maybe I’d put it differently. I think first-half the industry grew 8% to 9%. What was the number for nine months? Would you have that, sir?
Mahaveer Taparia
What do you government what I go from local, all combined together, all polymer combined together the growth was only 1% in plastic piping.
Rahul Agarwal
Okay. Okay. And you think for the full-year…
Mahaveer Taparia
Yes, combination of all the polymer. Any PVC, CPVC, polypropylene, hydrogen, linear low poly are together the market has grown by 1%. We don’t use linear low-density polygeny, we don’t make a dip system. So at LDP, we use mostly for infrastructure. So all combined there was 1%. Our company overall R2B was 7.5% and other than infrastructure, we have grown by 11.5% in nine months.
Rahul Agarwal
Got it, sir. This is really helpful. Thank you so much for taking my question. All the best.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Ashok Shah with Eklavya [Phonetic] Invesco. Please go-ahead.
Unidentified Participant
Thanks for taking my question. Sir, last quarter raw-material price was low and this quarter raw-material price would be probably something higher. So what would be expected out of this?
Mahaveer Taparia
I don’t think raw-material prices are now higher than last year…
Unidentified Participant
Is what I know these price are higher, but the effective price are not higher.
Mahaveer Taparia
Quite low, very, very competitive, very economical. Our product is very currently any pipe.
Unidentified Participant
Okay. Thank you.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Shah with Dolat Capital. Please go-ahead.
Shravan Shah
Sir, just to get a clarification, when we said a 1% growth just of previous participant reply, so 1% growth you are seeing for nine-month FY ’25 or for third-quarter FY ’25?
Mahaveer Taparia
FY ’25 for the nine-month ’28 around 1% of our polymer going into making plastic piping. All the polymer. Don’t do the polymer in our piping business because we are not in gift system.
Shravan Shah
Okay. But in terms of the broader level, in terms of the PVC level, will this be a 2%, 3% kind of a growth for nine months?
Mahaveer Taparia
PVC, leverage currently grow by 11%, we have grown by 11%. CPVC country has grown by 9%, we have grown in excess of 20%. The two places raw-material we need to make in our plastic piping system nine months.
Operator
Okay. So Mr. Shah, are you done with your question?
Shravan Shah
Yes, fair done. Thank you.
Operator
Thank you. Next question comes from the line of Varun Jain with Dolat Capital. Please go-ahead.
Varun Jain
Yeah, hi, sir. So my question was in the gas piping systems business, you had expected some orders in Q2 FY ’25. So has the order scale increased in Q3 and how is that going? You had told us that there is a very difficult testing procedure for these pipes.
Unidentified Speaker
Yes, yes, think. Yes, pipe going.
Mahaveer Taparia
No, we actually not going to any order. Equipped we have got certified also. We are waiting for some order to come in this quarter. As on today, we would know orders for gas piping.
Varun Jain
So any reason for that?
Mahaveer Taparia
Right., we qualified to supply gas piping system. We not only make pipe, we also make fitting, but as on — up till now, we have not issued any order. But some time to base you.
Varun Jain
Okay, sir, is there any specific reason why you didn’t get any order like some requirement does not matter.
Mahaveer Taparia
Any new supplier to qualify are we just some gear friend?
Varun Jain
Okay, okay. And sir, by when do you expect to ramping-up in this business?
Mahaveer Taparia
We may get it in this quarter also.
Varun Jain
Okay. Okay, sir. Okay. Thank you and all the best. You appreciate.
Operator
Thank you. Next question comes from the line of Utkarsh Nopany with BOB Capital Markets Limited. Please go-ahead.
Utkarsh Nopany
Yeah. Good evening, sir. Sir, my first question is regarding the industrial segment. So our industrial segment volume has degrown for the past two consecutive quarter. So wanted to understand what is the reason for the same and how this segment is expected to perform in the current March quarter.
Unidentified Speaker
See, in the industrial division, the volumes are really not important because they are the various OE customers, various parts which are not related to the volume that we. Pleasing is the last year in this same business segment, we had electronic to voting machine orders, which is not forming part of the current year business. And that’s why on a division level, you are looking at the degrowth, if you exclude that business, which was not a recurring basis, then definitely we had a moderate growth.
Utkarsh Nopany
Okay. And sir, my second question is like what would be our CPVC pipe volume growth for December quarter. And can you please specify once again our plastic pipe segment and volume and margin guidance for FY ’25.
Mahaveer Taparia
Now, we had a growth of 20% plus in the volume. System, our volume has grown 20% plus in nine months.
Utkarsh Nopany
Okay. And sir, can you please specify the plastic pipe volume and margin guidance for FY ’25?
Mahaveer Taparia
We were — we say we are tracking 3% to 4% more than the country growth. But specifically, number on plastic piping system, we maintain 15% to 16%. But in uncertain time, we are scared to give any number, but definitely, we are confident we will grow more than a country.
Utkarsh Nopany
Okay. And sir, on the margin side.
Mahaveer Taparia
Margin will reach to 14% or.
Utkarsh Nopany
For plastic pipe segment?
Mahaveer Taparia
For the company we can talk.
Utkarsh Nopany
Okay. Thanks a lot, sir.
Operator
Thank you. Next question comes from the line of Amit Purohit with Elara Capital. Please go-ahead.
Amit Purohit
Yeah, thank you for the opportunity. Sir, just on your comments that Q3 you saw slower-growth in the agri segment as well as infra and so plumbing would have done well housing side. And CPVC has grown probably faster than the rest of the portfolio. And what explains the realization lower for the quarter? And if the coming quarters, there is a likelihood that agri and housing will continue to do well, what is — assuming that PVC prices remain stable, should we see sequential improvement or stable kind of how do you say? These are the two questions, sir.
Mahaveer Taparia
We see prices and normally should we have slight upward bias, but we can’t say we are not clear about the entry dumping duty. So entry dumping duty comes in, there is no region of UC price to go up also. But what I say may not go down?
Amit Purohit
No, sir, I was referring to our performance. I’m not — I understand PVC prices difficult to predict. What I wanted to understand is that in Q3, our realization on plastic pipe was 131.6 piece of KG. And when I look at the reasons that you highlighted in terms of your performance, this is because agri was not doing well and infra was not doing well, which I presume that would have a lower realization than the housing and CPVC did 20% and still we saw a sequential reduction in realization. So I just wanted to know, is that the hypothesis correct that maybe the…
Mahaveer Taparia
Supply is your point in price, which prices are much higher than PVC.
Amit Purohit
Okay. Okay.
Mahaveer Taparia
You cannot go by the price per kilo basis in the way in our business, there is no price per kilo basis. Okay. And in these control, we are a little volume number, yes, which in coming quarters also one should expect a stable — assuming that PVC prices remain same. So it should be a stable number. Difficult to make a full guard, but yes, we are drop 3% to 4% more than a country growth. That part we are confident. So if it doesn’t go down, then we definitely will grow nicely in our plastic piping volume-wise more than two-digit better than a country.
Amit Purohit
Just wanted to know why I’m asking this is just to know that, is the competitive intensity so high that currently — I mean, there is too much of undercutting which is happening amongst the dealers and dealers are asking for significant discounts from companies. Is that the scenario right now, even in-housing.
Mahaveer Taparia
Nothing like this.
Amit Purohit
Okay. Okay, sir. Thank you, sir.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Rohan with Turtle Capital. Please go-ahead.
Unidentified Participant
Hello. Yeah. My question is regarding OPVC. So what is your total capacity at this moment?
Mahaveer Taparia
Yeah, yeah. Until 30, I mean yes. 9,000 ton annually.
Unidentified Participant
9,000 tonne annually with three lines that you have right now.
Mahaveer Taparia
Yes.
Unidentified Participant
And what is the timeline for rest 7 lines?
Mahaveer Taparia
7 lines, 2028.
Unidentified Participant
2028. Okay. And with this nine line — with this three lines that you already have, so what would be the revenue that will be generated at optimum utilization?
Mahaveer Taparia
And two lines have just gone into production. So once they are running properly, then we don’t — we have no idea. We have new markets. So we very difficult to do any forecast for that quantity. We should be able to sell at least more than 6,000, 7,000 tonne next year.
Unidentified Participant
Okay. So deem like that. Okay. It is all high value-added.
Mahaveer Taparia
High-value added, yes, but volume-wise, we may be able to say 6,000 to 7,000 tonne next year.
Unidentified Participant
Okay. And can you just explain me the action that is going on like replacement or supplementing the ductile iron pipe. So is there acceptance increased over by passing quarters?
Mahaveer Taparia
No, now the DI pipe, while a diameter, the OPC pipe is it at a very economical cost through the department up to 400 millimeter. We are playing 110, 160, 200, 250 is not a diameter. So definitely a department going for OPVC is much more advantages with them and of course wise and performance-wise. So we are confident as we go and getting qualified, we will go on getting order for the capacity what we have put in-place.
Unidentified Participant
Okay. So you mean to say that majority of our demand in OPVC is below 400 mm.
Mahaveer Taparia
As you are today, you see our impression.
Unidentified Participant
Okay. And there — and over there that — how is the traction going on like —
Mahaveer Taparia
Sorry.
Unidentified Participant
How is the traction going on? The acceptance by government projects, how…
Mahaveer Taparia
There is no issue. The government we are finding is better than lower in cost and do better performance, longer life also, okay. Better performance, water outflow is more in OPVC compared to DI pipe, you lives it longer also. So there is no issue.
Unidentified Participant
Okay. And how big this can be an opportunity for a company like Supreme and how big you want to be in this segment?
Mahaveer Taparia
Yeah, we want to be a segment where still go long way, long way still we have developed as openly [Indecipherable] properly in our country. We to use more capacity also. We see a very small capacity. Very small capacity. Today we are running small capacity. We have aimed to become much larger capacity. That part I can tell you. It will take some time.
Unidentified Participant
Okay. Okay, so this was from my side. Thank you for your explanation.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Vipul Kumar Anupchand Shah with Sumangal Investment. Please go-ahead.
Vipul Kumar Shah
Hi, sir. So my question is, what was the average price of PVC during last quarter and what are the prices ruling as on today, sir?
Mahaveer Taparia
And company cash cash company then they give you good discount also. But the price was at 3.5 company price but then they give so many discounts, they give so especially with customers no idea. No idea. You may know, see below actually rupees. Open-market price around INR72 rupees. I can give you open-market price. Okay, in BMD market, open-market price of is INR72 each and local company price is 78.5 but then completely huge discount based on the quantity okay so now the prices are not transparent the only chance for right now, their price and yield price are quite different.
Vipul Kumar Shah
So have they recovered now or they are still rolling at low levels only?
Mahaveer Taparia
Recover the import which cargo is arriving. There is no duty as on today. So they are quite low compared to local company price.
Vipul Kumar Shah
Okay. Okay. Okay. Thank you, sir.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Keshav Lahoti with HDFC Securities. Please go-ahead.
Keshav Lahoti
Hi, thank you for the follow-up opportunity. Sir, as you highlighted that CPVC demand is growing more than 20% and infra demand has been poor. Can you give some sense on what is the infra mix and CPVC mix this year?
Mahaveer Taparia
Sorry?
Keshav Lahoti
So as you highlighted, CPVC demand is growing very fast and infra has been very poor this year. Some sense on how much is the CPVC mix in the entire portfolio and infra mix for this year.
Mahaveer Taparia
[Indecipherable].
Keshav Lahoti
Okay. Thank you. That’s it.
Mahaveer Taparia
Thank you.
Operator
Thank you. Next question comes from the line of Rishab Bothra with Anand Shares and Stock Brokers. Please go-ahead.
Rishab Bothra
Yes, sir. Two, three questions. Our value of our share of value-added products have increased, but from 35% to 38%, but still I think margin have lowered. So to what extent the value-added products can increase and margin trajectory look better?
Mahaveer Taparia
Our plans go in engaging value-added share, we are investing more-and-more money. This year we will be investing more than INR900 crores in plastic pipeline. Correct? Many investments are taking place to increase our value-added share. Normally, we get 42% value-added share, which we want to go increase. Okay. Okay. Commodity pressure very low quarters. We want to improve our return on capital employed in one to improve our operating margin.
Rishab Bothra
Okay. And sir, looking at the EBIT per ton, if we want to compare, I think consumer product has the highest EBIT per ton followed by packaging product and industrial product. Plastic pipes comes the last. So however, when we look at the revenue contribution, plastic piping product has 65%, industrial and packaging 15% and consumer 5%. Will the expanded capacity change the revenue mix per se?
Mahaveer Taparia
We go by share on capital employed.
Rishab Bothra
Pardon me, sir.
Mahaveer Taparia
We go by on average capital employed in our company.
Rishab Bothra
And not on EBIT per ton.
Mahaveer Taparia
The last year return on every capital employed was second to furniture. Our return capital employed was quite good. As you’ve seen our balance sheet overall, we earned more than 40% money. So our criteria only we need to give us more return on our chemical.
Rishab Bothra
So better is to look at ROCE rather than EBIT margin, EBIT per ton.
Mahaveer Taparia
ROCE.
Rishab Bothra
Okay. Okay. Fine. Fine, sir. And lastly, on the margin front itself, we achieved 20% annualized margin in FY ’21 and we are around 16% or so. So what timeframe can we look to reach that margin level again, operating level margin.
Unidentified Speaker
Margins were not the normal margins from inventory gains. You see in those times, during COVID times, the PVC prices or the polymer prices went up so high, currently increasing prices, you tend to get inventory gains. Those are not the regular margins. So fiscal year the operating margin would be in the range of 14% to 15%.
Rishab Bothra
Okay, 14% to 15% regular margin. Okay.
Mahaveer Taparia
Again, I conclude, we work on your region on every project.
Rishab Bothra
Got it. Got it. Fine, sir. Thank you. Wishing you all the best.
Operator
Thank you. Next question comes from the line of Rohan with Turtle Capital. Please go-ahead.
Unidentified Participant
Hello. Yeah, thanks for the follow-up opportunity. I just wanted to know-how does the distribution of OPVC work? Is it distributor-led business, contractor-led business or it’s a tender-based business because there’s a lot of dealing with government.
Mahaveer Taparia
We supply some contracted supply to government.
Unidentified Participant
Okay. So it’s more of a contractor-based business. You supply to contractors.
Mahaveer Taparia
Order from government, we are the supply energy direct to government. We supply to contracted against payment who supply to government.
Unidentified Participant
Okay. Okay. Okay. That was from my side. Thank you, again.
Operator
Thank you. The next question comes from the line of Deepak Lalwani with Unifi Capital. Please go-ahead. Hello, sir. Thank you for the opportunity. Sir, my question was on the infra segment. What is the reason for the weakness? And as we speak, have things improved? And can you share your outlook for this segment?
Mahaveer Taparia
And you are aware in the first-six months, the government — central government spent only 29% of their budget on infra and we don’t think much expenses has been boosted in the 3rd-quarter also. I have no idea. Normally government has spent money in the last quarter. So coming only from central government budget or state government budget. I think that government spending is lower. We have seen that even the local producer who are supplying the hydrogen polyethylene get a GBOs of 28% by volume in first-nine months. We saw that across all the application for infra, do you see hydrogen polyethylene dramatically used in infra, one of the raw-material and there is a device of 28% by volume in the country first-nine months. We have no idea.
Deepak Lalwani
Got it. Thanks.
Operator
Thank you. Next question comes from the line of Aasim with DAM Capital Advisors Limited. Please go-ahead.
Aasim Bharde
Yeah. Hi. So I just wanted to understand on your pipes volume growth guidance. So when you say Q4 will be 24% 25% growth, so that you can meet your annual guidance expectation, is it actual ground level demand that has suddenly improved that is giving us the confidence? Because as of late December and early Jan, our channel change did not pick-up any robust demand indicators. Your own Q3 volume also suggest the same and we have 20 days done in January. So as demand actually picked up materially.
Mahaveer Taparia
We believe this partner we will sell more than 200,000 ton. This is what our distribute had given us from. They have given us their revised target and industry adverse happens, this is happen also. If nothing adverse happens, suppose the — there is unfortunate some cyclone or some land, big land happens. Also, any good thing happens. We are normally actively see January — now January to 10 June, the demand will remain better on the plastic system. We are normal experience. Beginning January or more so after the 14th January. After this, Vishu, Lori, all the festival over, the demand up to 10 middle of June demand is going to be better for plastic pipe which establishing normal every year. So there is nothing annual this year. If anything happens, I cannot say.
Aasim Bharde
Sure, I can understand what’s not in our hand is not in our hands, but to get the 200,000 tons metric tons sales in Q4, you will have to run at capacity utilization almost 100% in Q4 itself.
Mahaveer Taparia
I can surprise in the issue. I would capacity in-line with me. I can give 25,000 ton from my stock also. Material available material.
Aasim Bharde
Okay. And because the other thing is there is a gap between international PVC prices and domestic prices, domestic being higher. So that also is a factor, right? So when you say 200,000 metric ton clarity from your channel, it is eventually going into basically end consumers are still consuming. That’s the level of clarity we have, right, not inventory stocking.
Mahaveer Taparia
We will share distributed already. Distributor will be passing to the market. Yeah, normal experience. Okay. Our sales are quite good in last quarter.
Aasim Bharde
So that’s it. Thank you.
Mahaveer Taparia
Thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Mahaveer Taparia
Thank you very much. Thank you all.
Unidentified Speaker
Thank you, and thank you, all the analysts.
Unidentified Speaker
Thank you. Thank you. Thank you, DAM.
Operator
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.