Supreme Industries Ltd. (SIL), a leading company in India's plastic products sector, experienced a 2% decline in revenue compared to the previous year. This was primarily due to stagnant volumes in the piping segment and overall weak performance in other areas.

The pipe business saw a notable 5% drop in realization, and factors such as volatility in input prices and reduced government spending contributed to the downturn. Despite these challenges, gross margins improved by 100 basis points to 34.5% due to lower PVC prices. However, EBITDA margins fell by 140 basis points to 14.0% due to rising employee costs and other expenses, resulting in a 15% decrease in net profit.

Looking ahead, it is expected that the normalization of input prices and lower inventory levels will drive volume growth. This will be supported by anticipated increases in government spending in the second half of FY25 and strong demand from the real estate and construction sectors. Projections indicate a 13.3% CAGR in volume and a 13.6% CAGR in revenue from FY24 to FY27, with profitability expected to grow at a 16% CAGR.