Wallfort Financial
Supreme Ind (Accumulate)
CMP: ₹590.10
Target: ₹648
Supreme Industries has posted Q2FY15 revenue below our expectation. The company has reported top-line growth of 8.95 per cent y-o-y to ₹1,019.8 crore in Q2FY15 against ₹936.1 crore in Q2FY14. The company registered 10.14 per cent volume growth in Q2FY15 and 5.04 per cent for H1FY15.
Management expects volume growth of 12-15 per cent and value growth of 8-10 per cent for FY15E and Ebidta margin at 12.5-13.5 per cent. During Q2FY15, Ebidta decreased by 18.74 per cent y-o-y to ₹99 crore and corresponding margin declined by 331 bps y-o-y on account of inventory loss to the tune of ₹50 crore due to sharp fall in various polymer prices. The company has realised ₹46 crore from sale of 29,511 sq.ft. of commercial premises and earned profit of ₹20.4 crore at net level. Net profit has decreased by 20.61 per cent to ₹52.9 crore in Q2FY15 and correspondingly margin declined by 193 bps.
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