{"id":176696,"date":"2026-01-22T14:27:01","date_gmt":"2026-01-22T19:27:01","guid":{"rendered":"https:\/\/alphastreet.com\/india\/the-supreme-industries-limited-supremeind-q2-2025-earnings-call-transcript\/"},"modified":"2026-01-22T14:27:01","modified_gmt":"2026-01-22T19:27:01","slug":"the-supreme-industries-limited-supremeind-q2-2025-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/the-supreme-industries-limited-supremeind-q2-2025-earnings-call-transcript\/","title":{"rendered":"The Supreme Industries Limited (SUPREMEIND) Q2 2025 Earnings Call Transcript"},"content":{"rendered":"

The Supreme Industries Limited (NSE: SUPREMEIND) Q2 2025 Earnings Call dated Oct. 22, 2024<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

M.P. Taparia<\/strong> \u2014 Managing Director<\/em><\/p>\n

P.C. Somani<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Aasim Bharde<\/strong> \u2014 Analyst<\/em><\/p>\n

Rahul Agarwal<\/strong> \u2014 Analyst<\/em><\/p>\n

Shravan Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Utkarsh Nopany<\/strong> \u2014 Analyst<\/em><\/p>\n

Ritesh Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Keshav Lahoti<\/strong> \u2014 Analyst<\/em><\/p>\n

Praveen Sahay<\/strong> \u2014 Analyst<\/em><\/p>\n

Sonali Salgaonkar<\/strong> \u2014 Analyst<\/em><\/p>\n

Srinath V.<\/strong> \u2014 Analyst<\/em><\/p>\n

Sneha Talreja<\/strong> \u2014 Analyst<\/em><\/p>\n

Nikhil Agrawal<\/strong> \u2014 Analyst<\/em><\/p>\n

Bhavin Pande<\/strong> \u2014 Analyst<\/em><\/p>\n

Abhishek Ghosh<\/strong> \u2014 Analyst<\/em><\/p>\n

Chirag Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day, and welcome to the Supreme Industries Q2 FY ’25 Earnings Conference Call hosted by DAM Capital Advisors. [Operator Instructions]<\/p>\n

I now hand the conference over to Mr. Aasim Bharde. Thank you. And over to you, Mr. Bharde.<\/p>\n

Aasim Bharde<\/strong> \u2014 Analyst<\/em><\/p>\n

Thank you, Ridhvi. Good evening all, and thanks for connecting to Supreme Industries Q2 ’25 results call. From the company’s side, we have the senior leadership team who will take us through the Q2 performance and give us a brief comment, following which we’ll open the call for questions.<\/p>\n

Thank you. And over to you, Mr. Taparia.<\/p>\n

M.P. Taparia<\/strong> \u2014 Managing Director<\/em><\/p>\n

Thank you, Aasim Bhai. Thank you very much. I’m M.P. Taparia, Managing Director of The Supreme Industries Limited. I along with my colleague, Shri P.C. Somani, CFO; and Shri R.J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September, 2024. The standalone results and the consolidated results are already with you. I’ll be brief on company, product, operating performance as a highlights.<\/p>\n

The company sold 1,38,077 tons of plastic goods and achieved net product turnover of INR2,236 crores during the second quarter of the current year against sale of 1,37,763 tons of plastic goods and achieved net product turnover of INR2,274 crores in the corresponding quarter of previous year, resulting volume growth at freight level and product value degrowth of around 2%. The company sold 3,11,912 tons of plastic goods and achieved net product turnover of INR4,848 crores during the first half of the current year against sale of 2,86,307 tons and net product turnover of INR4,614 crores in the corresponding half year of the previous year, achieving volume and product value growth of around 9% and 5% respectively.<\/p>\n

The consolidated operating profit and portfolio after-tax for the second quarter of the current year amounted to INR347 crores and INR207 crores as compared to INR380 crores and INR243 crores respectively for the corresponding quarter of the previous year, resulting decrease of 9% and 15% respectively. The consolidated operating profit and profit after-tax for the half year of the current year amounted to INR772 crores and INR480 crores as compared to INR723 crores and INR459 crores respectively for the corresponding period of previous year, recording increase of 7% and 5% respectively.<\/p>\n

The business scenario of all the product segments of the company for the second quarter ended the 30 September, 2024 as compared to the corresponding quarter of previous year has been aged under Plastic Piping System business degrew by 1% volume and 5% value term. Packaging Product Segment business grew by 11% in volume and 14% in value term. Industrial Product Segment business degrew by 2% in volume and grew by 1% in value term. Consumer Product Segment business degrew by 8% in volume and 1% in value term.<\/p>\n

The overall turnover of value-added product gone down to INR907 crores during the current quarter as compared to INR942 crores in the corresponding quarter of the previous year. The company has a total cash surplus of INR674 crores as on the 30 September, 2024 as against cash surplus of INR1,178 crores as on 31 March, 2024.<\/p>\n

Going forward, the business outlook. Plastic Pipe System business, growth was severely affected due to extreme volatility in PVC resin prices, lower spending on infrastructure in the first six months by governments and extended monsoon. Due to Red Sea shipment movement blockage, the container productivity went down extremely. It led to steep freight increase from Asian countries to India. 60% demand of PVC resin in India is met from imports. Out of that, 66% volume, more than 80% import, comes from Asian countries. This has led to increase in the cost of PVC resin between mid-April to 30 June by 19%.<\/p>\n

As the Fed rate started moving down, the prices took a deep cut between the 1 July to the 16 August. The prices then went down by 17.5%. This type of price volatility in a very short period led to deep destocking in the entire trade channel. As the rainy season got extended, the demand revival for agriculture pipe also remained subdued in the month of September. The government spending on infrastructure also has gone down in the first half of this fiscal year. Thus, the company is required to revise guidelines of 25% volume growth in Plastic Pipe System to be between 16% to 18% for the year.<\/p>\n

Now the price volatility has eased, price trend of PVC will sustain or go up marginally, business has started, monsoon has withdrawn, the government also announced an increase infra spending in second half of this financial year. The company is fully geared to cater to increased demand of its product with increased available capacity from various ongoing brownfield expansion at multiple locations.<\/p>\n

The new greenfield unit dedicated for production of varieties of industrial and ball valves at Malanpur has commenced commercial production with effects from the 1 September, 2024. The company has been allocated required land near Patna in Bihar and also purchased required private land at Kathua District in Jammu & Kashmir for putting up plastic product complex, including Plastic Pipe System. Execution of project at these locations shall be taken in hand during the next financial year.<\/p>\n

With completion of all the expansion plans undertaken in hand, total installed capacity of Piping System division shall reach 8,35,000 tons per annum by the end of March 2025. The business of Cross Laminated Film has started showing improved performance with improved demand for tarpaulins and penetrating newer export markets. The division expects about 15% volume growth in this business segment for the year with improved profitability. Trials have commenced for the newly developed Cross Plastic Film, which has good export potential. The commercial launch of the product is expected by December 2024.<\/p>\n

The company has expanded and introduced various new models of chair and cabinet in its Furniture segment. 10 new models have been introduced in the first half of fiscal year 2024-’25. The division continues to add showrooms to improve awareness of its range of premium products. Total strength of showrooms has reached 328 by end of September ’24 from 308 showrooms as on 31 March, ’24. Focus on strengthening distribution channel and adding more retail outlets continued.<\/p>\n

In the Industrial Component division, business conditions are improving and company expects demand scenario to further improve in sectors of home appliances, white goods which constitutes larger part of this business. The division is also working to expand its customer base and develop the business in new sectors and witnessing positive outcome. The Material Handling Division is continuously expanding its customer base, introducing new products and also investing in new machines and moulds. Orders have been placed for requisite equipment for Bubble Guard Board and capacity expansion of PP hollow sheets. The division would continue to strive to enlarge its customer base and product portfolio paving the way for moderate growth.<\/p>\n

Composite LPG Cylinder division continues to cater to existing overseas customers and also participates in various export enquiries. Supplies against new LOI received from Indian Oil Corporation Limited are taking place regularly and expects to receive orders for additional quantities also. Response to company’s efforts to engage with the distribution system of LPG cylinders with promotional activities are positive.<\/p>\n

The Protective Packaging division is doing good business and its focus on developing customized solutions is working well. The strategy to work more on fabricated products is yielding a positive outcome. The division is continuously increasing its fabrication capacities in various geographies to cater to increased demand. Expansion activities are undertaken at Jadcherla, Telangana, Malanpur in Madhya Pradesh and Kharagpur in West Bengal which shall be in place during the third and fourth quarter of this financial year. Negotiations for a suitable location for a new greenfield site near the port in the western region to cater to export opportunities and domestic demand are yet to be concluded.<\/p>\n

The Performance Packaging division continues to utilize its capacities optimally and work on improved product mix and post-extrusion value-added products. Export opportunities remain the focus area and the division is able to penetrate some new countries. The company has placed equipment orders and also awarded civil construction work for making Windows at its new site at Kanpur Dehat in U.P. In the first phase, company has now planned to put entire window making facilities at Kanpur and cater to customers in Uttar Pradesh, Uttarakhand and NCR area. The company expects to supply windows in the first half of 2025-2026.<\/p>\n

Looking at the business outlook and future growth opportunities, the company has made capex commitments, including carry forward commitments of around INR1,500 crores. Total cash outflow during the current year is not likely to exceed INR1,000 crores and shall be funded entirely from internal accruals.<\/p>\n

This is a brief and overall summary for the quarter and half year ending under reference. Thank you for your patience. Now I and my colleagues, Shri P.C. Somani and Shri R.J. Saboo are available to reply to various queries raised by all of you. Thank you very much.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much. [Operator Instructions] The first question is from the line of Rahul Agarwal from Ikigai Asset Management. Please go ahead, sir.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Yeah. Thank you. Good evening, sir.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Good evening, sir.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Sir, first question was, would you like to share the inventory loss for the quarter?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Maybe around INR35 crores to INR40 crores.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Okay. Secondly, on the — in the first quarter conference call, you had mentioned that the polyethylene gas piping systems will see some kind of launch in October. Could you share some progress report on that, please?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Polyethylene gas system?<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Yes, sir.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

No, it is under good progress. We anticipate that we will get order in this quarter.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Sir, how does the bidding pipeline look like? Could you share some kind of numbers in terms of what’s the pipeline overall for the industry?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Pipeline of what?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Gas pipeline.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Gas pipeline. The gas pipeline if you want — plastic pipeline are used below the ground. Now we have developed a pipe — composite pipe which can be also used above the ground. The market is around 100,000 tonnes annually, but we are still not participating at all. So I can’t say much about it. But as our product is now approved by so many inspecting agencies, we anticipate to get order from this quarter.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Got it, sir. And last question was on CPVC resins. Like on the TV interview you shared some numbers on PVC resins, import and domestic production. Could you share what is the CPVC resin local production? And how much is the import today?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

CPC resin local production, yes, we don’t know. We are getting from local also imported also. Local also, they have to import PVC. They don’t make PVC. The local supplier whoever are making are importing PVC and then coordinating and offering CPVC. Our materials to them also is being imported?<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Sure, sir. But how much would be CPVC compounds available in terms of tonnage in India, local currency?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I don’t buy compound, I buy only resin only. But overall, the market is around 220,000 tonnes annually.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Okay, sir. And lastly, sir, just on PVC resins. You mentioned that the import still remains like 65% of overall consumption. Let’s say, three, five years out, do you think the Indian — there are large business houses which have announced some new capacity. Do you think India can be self-sufficient in PVC resin production?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

No, that announced expansion will happen in 2026-2027. But when the capacity happens also India will still require to import minimum 200,000 — 2 million tonnes. India remains short of 2030 with the current forecast.<\/p>\n

Rahul Agarwal<\/strong><\/p>\n

Got it, sir. Perfect. Thank you so much, sir. All the best and wish you a very Happy Diwali.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Thank you. Thank you. Same to you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.<\/p>\n

Shravan Shah<\/strong><\/p>\n

Thank you, sir. Sir, just trying to further understand in terms of the — our lowering the volume guidance for FY ’25. So if I am just doing a math, the ask rate for second half is for Plastic Pipe segment is close to 20% to 22% kind of a growth required. That means that 92% kind of a utilization. So there are two questions trying to understand. In September, was our volume in Plastic Pipe segment was much better than the July-August? And in terms of the October, is it much better than the September? And if possible, how we can break this in terms of the overall third quarter? How much growth are we looking at?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I think the quarterly number in July was a very bad month. In July, our business has gone down from 34,710 to 27,700. Dropped by 20% in month of July. And I guess, there was marginally 3% growth. In September, it was more than 15% growth. And now onward, normally second half is always better. Our last year second half grew by 28% by volume. And ’22-’23 we grew by 38% by volume. Second half is always better than first half. And now a huge destocking took place in last four months, that is June, July, August, September. We anticipate good growth going forward compared to first half. So we are confident. When we are revising guidelines to 16% to 18%, we are quite confident unless some very untoward will take place.<\/p>\n

Shravan Shah<\/strong><\/p>\n

Got it. Got it. And second in terms of the going forward also, previously we talked about even from FY ’25 onwards, so FY ’26 onwards we were looking at broadly 12% to 15% kind of a volume growth. So that guidance remains intact…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

[Indecipherable]<\/p>\n

Shravan Shah<\/strong><\/p>\n

Got it. And sir on the realization front in Plastic Pipe segment on Q-o-Q basis, 6.1% there is a significant increase. So now how do we see third quarter in terms of the pricing? Will it — for us will it be of some decline will be there or it will be a flattish to some improvement?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

We don’t anticipate PVC price to go down now further. So when PVC price is not going to go down, we do not see any reason why the value will decline compared to the volume growth.<\/p>\n

Shravan Shah<\/strong><\/p>\n

Okay, okay. Got it. Got it. And is it possible, currently what’s the total capacity though we are mentioning that by FY ’25 we will be — for Plastic Pipe we will be eight like 8,35,000. But currently, how much it is?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

It maybe — currently, it maybe around 7,90,000.<\/p>\n

Shravan Shah<\/strong><\/p>\n

Okay, okay. Got it, sir. Thank you, and all the rest.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Utkarsh Nopany from BOB Capital Markets Limited. Please go ahead.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Yeah, hi. Good evening, sir. So first thing I wanted to understand like what would be the peak capacity utilization for our pipe facility during strong demand season?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

25%.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Okay. Sir, because you mentioned that our current pipe capacity is around 7,90,000. And if we do the math, then it looks like that we need to operate at close to around 90% utilization rate for the second half of FY ’25 to meet our guidance. So…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

It was quite large inventory now end of September.<\/p>\n

P.C. Somani<\/strong><\/p>\n

Plus capacity is also increasing in the second half further.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

And every month it was increasing. From 7,90,000 it grew to 8,75,000. Every month, we will go on adding capacity, but this is going on brownfield expansion not a new greenfield.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Yeah, got the point, sir. And sir, second thing like our pipe volume has grown at around 8% to 9% rate during pre-COVID period. And given the current economic scenario, just wanted to understand from you like what would be the sustainable pipe volume growth rate in your viewpoint say over the next two to three year period. I’m not asking for FY ’26 or ’27, but from medium-term perspective what kind of a volume growth we can look for?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I can say, normally I could talk country growth. Country growth should remain between 10% to 12% going forward next 10 year. Country growth.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

And sir, my last question is that like what would be the sustainable margin guidance for our Pipe and Packaging segment?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Piping segment will be between 14% to 16%.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

And sir, for Packaging segment?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Packaging is always better.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Sir, can you quantify, because our Packaging segment margin has remained pretty weak for the last few quarters. But what kind of a run rate we can look for going forward?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Between 16% to 18%.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Okay. Thanks a lot, sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. [Operator Instructions] The next question is from the line of Ritesh Shah from Investec. Please go ahead.<\/p>\n

Ritesh Shah<\/strong><\/p>\n

Hi, sir. Thanks for the opportunity. Couple of questions. Sir, first is, any update on the anti-dumping duty which is expected on PVC? And secondly, what we hear is the quality control order on PVC got postponed, likewise on EDC, ethylene and BCM. Sir, any updates from a regulatory side over here which can help on PVC pricing?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Actually I had a question first, I must tell you. So anti-dumping duty, the first people to reply will be Reliance Industries Limited. So in that, we are not involved parties. And on this BIS certification, we believe that BIS will require to extend it up to the — as of today, it’s up to 24 December. Up to 24 December, very few companies have been qualified. Country is dependent more than 3 million tonnes PVC import, they have qualified up till now only five suppliers. If they don’t extend it, then there is going to be huge crisis in the country in January and February. There is no PVC. PVC prices will go up 100% more and we have to close down the capacity also. So we don’t anticipate such a scenario. I don’t think any such thing — this is wrong decision undertaken. We are dependent on import. Today you can’t restrict all the people in the world not to supply to India. No way. PVC is very important material required for farming, required for housing.<\/p>\n

Ritesh Shah<\/strong><\/p>\n

Okay. Sir, that’s very useful. Sir, my second question is, we have downward revise our volume guidance. You indicated we are confident on second half volume growth of 21%, 24% the implied numbers. Sir, I was just trying to get a sense on how does the agri order book stand? Because I was just going through my notes, a couple of quarters back, we had indicated that we had INR480 crores of confirmed order book from the Maharashtra Government. Is it possible for you to provide some color on the agri order book? And when we say that lower spending by government in first half, what all states we are referring to over here? Just trying to get more comfort on the volume throughput into second half.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I’m not sure [Indecipherable] agriculture. It was only for infrastructure. They have two — we don’t mix two things. Agriculture is separate update and Maharashtra order was for infrastructure for providing water, Har Ghar Nal Se Jal. So that was to do with infrastructure. And they are hardly buying anything.<\/p>\n

Ritesh Shah<\/strong><\/p>\n

Okay. Sir, what I’m trying to understand is what is the current order book position which gives us confidence for volume growth for the guidance that we have given?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

We have got a huge trade channel. We have got more than 1,000 distributors who are marketing our product. We got huge network of retailers, huge network of plumbers and they require now for housing, they require the product. It’s a very important product for housing. In a house, a functional area is kitchen and bathroom. You cannot do anything without pipeline. House is essential product? Housing construction is going on properly. And government is also building 30 million houses. They require piping system.<\/p>\n

Ritesh Shah<\/strong><\/p>\n

Correct. Sir, if I — can I squeeze in one more question?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Yeah, please ask me what you want.<\/p>\n

Ritesh Shah<\/strong><\/p>\n

Yeah, yeah. So basically when we have given the guidance of 580,000, 590,000 for full year on piping side, sir, what part of it would be government-driven and what part of it would be agri? Would it be possible for you to give some broad ballpark numbers over here?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Very small government-driven. We don’t do more than 2,000, 3,000 tonnes business of government every month. We are a small player in government business. We don’t participate in many government business. Agriculture demand will be there definitely. Now next five months, you won’t see agriculture when the monsoon is withdrawn.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

Hi. Thank you for the opportunity. Sir, firstly, I just want to clarify the numbers which you have given is 20% degrowth in July, August de-growth is 3% year-on-year and September more than 15% growth. Have I heard it right?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

You are right.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

Okay. And how has been the same shaping up in October month?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

October, now actually only 20 days have passed.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

Yeah. So how are the emittents [Phonetic]? Are we doing double-digit kind of a growth?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I can’t work on day-to-day basis. As I told you already that we will be growing more than 40% in second half. We have grown 38% by ’22-’23. Last year, we have grown by 28%. Second half is normally a better business period for our Piping System. So at 16% growth, we must grow by 41% by volume. We are very confident.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

Understood. Sir, in last quarter you have guided your CPVC volume growth was 40%. How has been this number in Q2?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

CPVC volume growth, we are 33% for six months.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

33% for six months. Okay. That is very useful. And sir, what is your overall volume growth guidance? Pipe you said 16% to 18%, but overall?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Overall, we may grow between 14% to 15% for the company.<\/p>\n

Keshav Lahoti<\/strong><\/p>\n

Okay. And one last question, sir. What is the sense on the channel inventory? Is it picking up?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Channel inventory. It will pick-up. Channel inventory…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Channel inventory is huge. In channel, there so many distributors and so many retailers, but because they bought less, we are getting figures from the raw material makers also, their sale was poor now. So we definitely believe that there is a much empty — anywhere this is season time. So normally these are — there are people that demand will be better with no rain. So housing activity will also pick-up big way. And the big festival has gone, Navratri, Dussehra, Diwali, big festival will be gone after October. So November onwards business runs and the Kharif crop is going to be harvested and then fields are empty, they will require money to be invested in development work. And fortunately, this year, the water reservoir, the 155 is a big reservoir of the country, they are full 88%. So there is [Indecipherable] water for the farmer to invest money to lay pipeline.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Praveen Sahay from Prabhudas Lilladher Capital. Please go ahead.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

Yeah. Thank you for opportunity. So the first question is related to the margin. If I adjust your inventory loss, your margin is nearly around 15.5% or 15.6%. So with the normalization in the PVC resin prices, second half, are you expecting similar kind of a margin?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

We have given guidance today also which will be between 14.5% to 15.25%. Here it is simple. Now there’s always some uncertainty, but we are quite comfortable.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

So for the full year you are saying 14.5% to 15.2%?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

15.25%. What can happen? Nothing. Nobody knows now. The better to your safe side.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

Okay, fine. Sir, the second question is related to the realization especially. In that we had seen some correction as well in the realization in the Piping segment. So is that Y-o-Y side? Is that some element of a product mix also there?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I don’t follow your question.<\/p>\n

P.C. Somani<\/strong><\/p>\n

Can you just repeat your question? We did not understand.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

So the realization of the Plastic Pipe segment on the Y-o-Y side it’s a 4% of a down and Q-o-Q it’s a 6% of up. And if I look at the fluctuation in the PVC resin prices has been also there and you had also given some fluctuations in the quarter, some upside in the PVC resin prices as well. But is that the Q2 versus the last year Q2 there is a product mix change as well?<\/p>\n

P.C. Somani<\/strong><\/p>\n

There is so many changes in so many systems.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I can’t trade that way.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

So it’s not only because of a PVC resin prices, it’s also the product mix change which has led to the difference in the realization?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Value-added [Indecipherable] margin will have gone further down.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

And you are able to maintain this value-added mix, 40% of value-added expected to be maintained…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

[Indecipherable] better value addition in the month of August, September.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

Sorry, sir, repeat.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

[Indecipherable] better value addition share in the month of August and September because in the pipe prices, the margins have been completely eroded due to fall in the resin prices. So we could still sustain margin to a respectable number due to better share of value-added item in month of August and September.<\/p>\n

Praveen Sahay<\/strong><\/p>\n

Okay, okay. Got it, sir. Thank you. I’ll come back.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Sonali Salgaonkar from Jefferies. Please go ahead.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Sir, good evening. Thank you for the opportunity. Sir, first question will be regarding any segmental flavor you would like, by segmental I mean end user, you would like to highlight in terms of, A, in this quarter which segment did not perform well? And secondly, going forward, maybe in the second half, which segment do you expect to perform better?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Which segment, I think the Plastic Pipe System will work better in second half. Then Packaging Segment business will be better second half. Furniture segment — I think all the divisions will do better in second half. Normally, all divisions do better in second half.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Sorry, sir, I meant from the point of view of either housing or infrastructure or agri.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Infrastructure, we are not a big player, but a small player. That business was eroded in the first half. So that is — that business may grow again by 10,000 plus tonnes. But we are a small player in infrastructure. Our major business is housing and next is agriculture. Infrastructure is a poor third.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

So was it the case that housing was not doing well in July when we had this degrowth of about 20% volumes?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

July is a rainy season. July normally remains lower.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Sir, year-on-year drop.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

See, [Indecipherable] coming down. So the whole pipeline they were reducing their own stroke. They all lost money. When price is coming down by 17.5% then my distributors also who were stocking goods, they all lose money.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Understood, sir. So basically, how — is it a fair understanding that housing is doing well, but this was predominantly due to destocking?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

You are very correct.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Okay. Sir, just wanted to confirm, August 3% was it a growth or a degrowth in volumes?<\/p>\n

P.C. Somani<\/strong><\/p>\n

August was 3% degrowth.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I guess, overall growth was 3%.<\/p>\n

P.C. Somani<\/strong><\/p>\n

It was growth or degrowth? What is she asking?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

They were growth.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Okay. So July a drop of 20%, August took growth of 3% and September is…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

And September is roughly 15%.<\/p>\n

Sonali Salgaonkar<\/strong><\/p>\n

Understood, sir. Sir, thank you for this clarity and all the best.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Srinath V. from Bellwether Capital. Please go ahead.<\/p>\n

Srinath V.<\/strong><\/p>\n

Hi, sir. Wanted to find out how CPVC is growing. Is it growing faster than the Piping division? Also wanted to understand the anti-dumping duty on CPVC has come in? And are the prices stable as the channel started accepting inventory? Just wanted your views, sir.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

CPVC prices are stable. There is no drop, no increase. The anti-damping duties have come mostly on Chinese supplier and on some South Korean supplier. We are basically in India getting materials from USA, Europe, Japan and Thailand. There is no anti-dumpling duty imposition on those countries.<\/p>\n

Srinath V.<\/strong><\/p>\n

Got it. And growth, sir? In CPVC, how is it playing out in this demand environment?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

CPVC how much?<\/p>\n

P.C. Somani<\/strong><\/p>\n

How much the growth?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Growth, I don’t have, maybe 10% to 12%. Our company grew by 33%.<\/p>\n

Srinath V.<\/strong><\/p>\n

So in this quarter, we saw 33% growth in CPVC volumes?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Even half yearly. In this quarter also, we have grown better.<\/p>\n

Srinath V.<\/strong><\/p>\n

Okay, sir. So the CPVC market has been somewhat stable from a demand perspective. The demand weakness is largely in PVC. Is that a fair understanding, sir?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

CPVC in India used for plumbing. Plumbing is not affected by rainy season. Plumbing is done inside the bathroom. Demand doesn’t get affected. Housing was going on properly.<\/p>\n

Srinath V.<\/strong><\/p>\n

Got it. Got it. So CPVC business grew double-digit even in this quarter?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Our company has a good position in CPVC.<\/p>\n

Srinath V.<\/strong><\/p>\n

Perfect, perfect. Thank you, sir. Thanks a lot.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Sneha Talreja from Nuvama. Please go ahead.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Hi. Good evening, sir, and thanks a lot for the opportunity. Sir, just two questions from my end. One is related to, you have mentioned that you would be manufacturing the entire windows system at one of your plants. Could you elaborate on this? Because earlier you were looking to manufacture only windows profiles. How big is this opportunity? And what are the numbers you can see from this particular business?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

We will be selling — we will not sell-in profile. We will be giving customized window help with the requirement of any project. So we will be making ready-made window as per the size and supply to the customer’s house. We will be starting the window also. So with our 5,000 men capacity, we may be able to produce by overall average some 320,000 windows every year. And we will be restricting ourselves to market in UP, Uttarakhand and NCR area. And we are going to make window only in our Kanpur plant. So we are also wanting to learn the business.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

How big is this market currently and who are the players?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Market, there are many players. We are not centering. There are many players. Market maybe around 150,000 tonnes and we are putting capacity of 5,000 tonnes.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood, understood. Sir, lastly on the Plastic Pipe division. While most of the questions are answered, just related to inventory side of it. According to you, what must be the channel inventory? And has already channel started picking up inventory in October? Would that have normalized or is it yet to normalize?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I believe channel inventory must have been now normal — must have been normal because there’s no reason now with the whole price drop has happened in the middle of August. Thereafter, there was no big change in pricing. That’s why you see we have more than 15% growth in September. So channel inventory must become normal.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood. One last one if at all I can get in. On the government side of business, while you said that you can get back that growth of 10,000, 12,000, that is ideally on a Q-o-Q or H2 versus an H1 basis, but that number must already be there in your base. So you are talking about an acceleration in growth from 15 to 20 only on the back of housing, right?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Housing, agriculture.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Agriculture also which will see a faster growth versus last year?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Agriculture normally is demand. This is peak period of demand from November to May, a peak demand of agriculture. Because in June, July, August, September, June, July, August, demand goes wavered down. The demand is there normally in second half September, but this year’s September was wash-out with the monsoon extended up to end September. So we had very poor demand in the month of September for agriculture, which don’t happen normally.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood, sir. Thanks a lot, sir, and all the very best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Nikhil Agrawal from Kotak AMC NDPMS. Please go ahead.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Good afternoon, sir, and thank you for the opportunity. Sir, my question was on the PVC, on the plastic price realization. We’ve seen a quarter-on-quarter jump of about 6%. And like from the prices that I have, I see that average prices in quarter two were actually down for PVC. So like did we hold on to the higher prices and maybe it had an impact on our market share or something during the quarter?<\/p>\n

P.C. Somani<\/strong><\/p>\n

PVC quarter one is dominated by agriculture, April, May. Whereas the product we had different in the second quarter. That’s why you are finding better realization compared to quarter one. So this is the product mix.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Okay. But our market share has been stable on a quarterly basis. There’s no — there’s been no impact on that?<\/p>\n

P.C. Somani<\/strong><\/p>\n

We might have gained market share.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Okay, okay. Great. Could you quantify? I mean, could you — like what’s the market share right now? Could you mention that?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Market share unless the data comes from the old players, then only we’ll be able to make it out.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Okay.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Normally, the market of Plastic Piping is around 4.3 million or 4.4 million tonnes. And we are 65% by organized sector. In organized sector, we are the largest supplier.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Right.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Next is Finolex and then come Astral and Ashirwad.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Yeah. All right.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

By volume, we are the largest supplier in the country.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Right, right. Yes, sir. Sir, one more question. Like how has the government spending been till now? Like if I’m not wrong, government spending did start — did pick-up from July end or maybe from August. So like, did we not see any demand from that — from the government segment during the quarter or is it yet to play out?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Government already announced that first half their spending was low and then they will release money for second half. So second half will start only from October.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

Okay, okay.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

So we believe that October to March government will be requiring. But first half, they were all involved in election and new government would come in position, because after all, it is mostly driven by central government. But now central government is very much in position. And so second half demand is definitely going to be better.<\/p>\n

Nikhil Agrawal<\/strong><\/p>\n

All right. Understood, sir. That’s it from me. Thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Bhavin Pande from Athena Investments. Please go ahead.<\/p>\n

Bhavin Pande<\/strong><\/p>\n

Hi. Good evening and thank you for the opportunity. Sir, just first thing, we see an increase in the depreciation expense. So what is the — so what explains that?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Tell me again, what you’re asking?<\/p>\n

Bhavin Pande<\/strong><\/p>\n

Sorry. Yeah, am I audible now?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Yeah, please.<\/p>\n

Bhavin Pande<\/strong><\/p>\n

Yeah. We could see a jump in depreciation expense. So what do you think would explain that?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Yeah. You see, a lot of brownfield expansion is taking place, but for a lot of SKUs, we have to require the more for each and every SKU where the life of the asset is lower than the plant and machinery. So as we are developing more and more SKUs, the addition capex which are incurred or which is going into production, you have to provide proportionate depreciation based on the respective life of the asset. And this will be the year in which we will be having the highest capex. In the first half itself, we had a addition of more than INR260 crores.<\/p>\n

Bhavin Pande<\/strong><\/p>\n

Okay. So sir, I’m assuming for next few years — a few quarters at least you would be seeing higher depreciation expense on account of this. And once this tapers down, the flow towards PAT would be lower, right?<\/p>\n

P.C. Somani<\/strong><\/p>\n

You see, ultimately, depreciation, it’s a cycle. Something get added new, so depreciation will be higher, but the old asset will get fully depreciated faster also. But as we are moving towards capex plan, and this year we have committed close to INR1,500 crores capex, so definitely, yes, depreciation will be higher compared to previous years.<\/p>\n

Bhavin Pande<\/strong><\/p>\n

And sir, what kind of asset turns do we expect on the investment that we are doing over next three, four years?<\/p>\n

P.C. Somani<\/strong><\/p>\n

On a brownfield expansion, you can expect 1:2.5. On a greenfield, it’s 1:2.<\/p>\n

Bhavin Pande<\/strong><\/p>\n

Okay. So 2.5 times and 2 times respectively. And could you shed some light on the PVC prices, how they have behaved recently and how do we see them shaping in the quarters ahead?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Now the pressure is stable. We can’t forecast, but we believe the prices are stable at a lower level. So there is very less chance for prices to go down unless the crude price comes down or economy goes very bad. So all the government, as you are fully aware, China is doing big stimulus to their economy. The U.S. economy is also not doing so well, hence they started reducing interest rate. So this shows that they are comfortable now with the inflation level. So we believe worst may be behind, but that’s a big question I have to reply, big question. But we believe the rush might be over in the world economy, mostly U.S. and China. They are a big user of PVC.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. The next question is from the line of Abhishek Ghosh from DSP MF. Please go ahead.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Yeah. Hi, sir. Thanks for the opportunity. Sir, in terms of if you look through your operating cash flow, we see a large build-up in inventory. Is it related to raw material or finished products or is it anticipation of a very strong second half? Some color there would be useful.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

It is combined, raw material finished goods both.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay. So it is largely because…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

It will come down properly by end of March.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay. So it will come back to the normalized levels?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Yeah, yeah.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay, okay. And sir, just in terms of the first half, any expectation of what would have been the market growth for PVC pipes?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

As I have said, the market might have grown between 9% to 10%.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Sorry, I missed you on that, sir.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Market might have grown 9% to 10%.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay, okay. So you would have largely maintained your market shares as far as the first half is concerned?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

I think so.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay. Got it. Got it. And sir, the other thing is we see healthy growth coming back as far as the Packaging Product division is concerned coupled with a healthy margin profile as well. So any comments on that because packaging seems to be doing well as far as both growth and profitability?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

There are two divisions which are growing, [Indecipherable] one is Cross Film Laminate and secondly Protective Packaging Product. Cross Film Laminate business was there, shaping previous two years. Due to so many products were launched by various competition and the products failed in the market, so there is a strong revival of demand for our product. And in Protective Packaging Product, we have lost so many variety of fabricated products and we have lost to so many world market also. So that is growing by lifts and now. So combined, Protective Packaging Product and Cross Laminated Film, the packaging market — packaging demand for our company growing nicely.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay. So you think this is on a recovery path as far as your market shares and growth profile is concerned?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

You’re right.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay, okay. Sir, just one last thing, in terms of capacity expansion, some of the listed and the branded players, whoever is announcing capacity, you think beyond that also the 35% unorganized or the semi-organized players are also adding capacity or is it the three, four listed players whom we kind of listen to…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

So many player come new and so many players go away, so we are not taking unorganized players. They are mostly sharing in their own local market. We believe the organized sector market share will go on growing [Indecipherable].<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Okay, okay. So from the 65%, it should only inch-up from here is what you reckon from here on?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

It will grow further in a small way, 1%, 2%, it may go on growing.<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt, sir. But for a follow-up question, please rejoin the queue.<\/p>\n

Abhishek Ghosh<\/strong><\/p>\n

Sure, ma’am. Thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

The next question is from the line of Chirag from Valuequest. Please go ahead.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Yes, sir. Thank you for the opportunity. Sir, my first question is on gas piping system. So what is the capacity which we have created for this particular product? And what to expect, sir, in terms of volumes in next six to 12 months?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

There is a huge depreciation of making polyethylene pipes, 3,000 tonnes per month. The same capacity can produce by for water, they get produced for gas also. For gas, we require very different raw material and we require a very strong testing system. Today, we have got system in place only at one plant which is near Jalgaon [Phonetic] other polyethylene pipe plant, we have not created any capacity to make any testing facility for offering gas pipe. So we will be offering gas pipe today or we are offering gas pipe today only from our Karegaon plant which is close to Jalgaon and where we have got monthly capacity to produce 3,000 tonnes per month. We are testing the market. There are other players, we are testing the market and we are going to share I believe in this quarter.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Okay. And sir, who is the customer here? And who are the competitors?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Sorry?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Who are the customers…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

There are many players already in the business. There are many players.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Okay. And who would be the customer, sir?<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Customers like Mahanagar Gas Limited. There are so many gas — company were distributing gas. They are the customer.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Got it. Got it.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

And they are in the contract by Government of India who want to give more and more houses, get supply by pipeline instead of buying by composite shielded [Phonetic].<\/p>\n

Chirag Shah<\/strong><\/p>\n

Got it. Got it. And sir…<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Very niche market. And we’ll be not only supplying pipe, we will be supplying fitting also.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Very clear.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

There are many suppliers who only supply pipe, not fitting.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Sir, in the initial comments, you had mentioned that there was INR35 crores to INR40 crores inventory loss during the quarter. If I look at your gross margins, that have actually gone up by almost 100 basis points. What could be the reason for the same?<\/p>\n

P.C. Somani<\/strong><\/p>\n

Gross margins is, when we building up the inventory which has gone up then the overheads go into the overheads and the valuation goes into the finished goods. So that’s why your cost of goods sold may not be the correct depreciation.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Okay, okay. And just lastly on Pipe segment, you said sustainable margins is 14% to 16%. So you mean EBITDA or EBIT.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

EBITDA. 14.5% to 15.25% EBITDA.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Generally, what is the depreciation?<\/p>\n

P.C. Somani<\/strong><\/p>\n

About 3%.<\/p>\n

Chirag Shah<\/strong><\/p>\n

Okay, okay. Thank you, and all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much. Ladies and gentlemen, due to time constraints, that was the last question. I now hand over the conference over to the management for the closing comments. Thank you. And over to you, sir.<\/p>\n

M.P. Taparia<\/strong><\/p>\n

Thank you very much. Thank you all to all the friends who have raised questions. We are very thankful to them for asking very intelligent questions. Thank you very much. Thank you, all.<\/p>\n

Operator<\/strong><\/p>\n

[Operator Closing Remarks]<\/p>\n","protected":false},"excerpt":{"rendered":"

The Supreme Industries Limited (NSE: SUPREMEIND) Q2 2025 Earnings Call dated Oct. 22, 2024 Corporate Participants: M.P. Taparia \u2014 Managing Director P.C. Somani \u2014 Chief Financial Officer Analysts: Aasim Bharde \u2014 Analyst Rahul Agarwal \u2014 Analyst Shravan Shah \u2014 Analyst Utkarsh Nopany \u2014 Analyst Ritesh Shah \u2014 Analyst Keshav Lahoti \u2014 Analyst Praveen Sahay \u2014 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