Supreme Petroch. Q4 FY25 Earnings Analysis

- Volume growth guidance for full financial year FY25 is around 7-8%, expecting to achieve approximately 350,000 to 355,000 tonnes, up from 325,000 tonnes last year (~8% growth). - For Q4 FY25, volume is expected to be consistent with Q3, with some export volatility but stable overall. - Mass ABS facility (70,000 tonnes capacity) commissioning expected Q1 FY26, with strong customer interest and anticipated smooth marketing of product, aiding revenue growth. - SPC (compounding) business expected to double volumes within 2 years, boosted by the new ABS product line. - New Haryana plant expansion underway with planned capacity including polystyrene (100,000 tonnes), EPS (50,000 tonnes), XPS (100,000 sqm), and downstream 3D panels (~1 million sqm); CapEx ~INR 800 crore; downstream units starting FY26. - Expansion into value-added downstream products expected to improve margins and asset turns to around 2.5-3x. - Overall outlook is positive with volume growth across all segments (PS, EPS, XPS) and margin improvement expected over next 2-3 years.

- Volume growth guidance for the full financial year is around 7-8%, with expected volumes of ~350,000 tonnes compared to 325,000 tonnes last year, implying ~8% growth. - The Mass ABS project commissioning is expected in Q1 FY26, with product sales poised to start promptly, supporting growth. - The new Haryana plant complex will have diversified products including polystyrene (100,000 tonnes), EPS (50,000 tonnes), XPS (100,000 sqm), and 3D panels (1 million sqm), leading to value-added segment growth with better margins. - Asset turn for the Haryana plant is expected at 2.5-3x with improved margin profile due to downstream value-added products. - SPC (specialty compounds) business volume expected to double over next 2 years due to ABS addition. - EBITDA margins expected to improve from high single digits to double digits as Mass ABS volumes ramp up. - Net profit grew 5.5% QoQ with PAT margin at 5.08%; 9M PAT margin stood at 6.32% with a 32% YoY increase in profit. Overall, profitability and EPS are expected to improve sustainably with volume growth, new product launches, and value-added downstream integration.

- Supreme Petrochem is investing approx. INR 800 crore in a new plant in Haryana. - The Haryana complex will manufacture polystyrene, expandable polystyrene (EPS), downstream styrenics including 3D boards from EPS, sheeting of polystyrene and ABS, and XPS insulation boards. - Pre-project activities for the Haryana site are ongoing with downstream units expected to start by FY26. - Capacity planned: polystyrene 100,000 tonnes, EPS 50,000 tonnes, and XPS 100,000 square meters; 3D panels capacity 1 million square meters. - The Mass ABS project phase 1 (70,000 tonnes capacity) is progressing well, mechanical completion expected by March 2025, commissioning in Q1 FY26. - Phase 2 of Mass ABS and expansion of Haryana plant expected to begin in the coming years. - Total capex phased over FY26 and beyond to support expansion into value-added products and downstream units.

- The company is debt-free as of December 2024, with an investible surplus of INR 680 crore. - All ongoing capital expenditure and investment programs, including the Phase-1 Mass ABS Project and Haryana plant expansion, are being funded through internal accruals and reserves. - There is no mention of any new plans for fundraising through debt or equity in the current or upcoming periods. - The company indicates no need to raise external debt or equity at present, relying instead on internal funds for growth and expansion activities.

- The company expects to start marketing the Mass ABS product comfortably once launched in Q1 FY26. - Discussions with prospective customers for Mass ABS are already ongoing, assisted by collaborators. - Customers are enthusiastic about the Mass ABS product based on known benefits such as better consistency, color efficiency, UV and thermal stability, lower gel content, reduced odor, and improved thermoforming properties. - The order book or specific pending orders details for Mass ABS are not explicitly given in the transcript. - Focus is on ramping up production and marketing of Mass ABS, with the anticipation of capturing a significant part of the import market currently existing in India. - No exact figures or formal order backlog numbers are mentioned within the provided transcript pages.