Paper & Paper Products company Satia Industries announced FY24 results: Marked by the industry headwinds w.r.t. to softness in pricing and challenging demand environment, the company saw a 9% decline in revenues to Rs 17,208 million in FY24. For Q4FY24, the revenues were Rs 4,306 million. Company’s healthy order book and lower raw material prices have helped the company in improving the gross margins at 57.1% in FY24 as compared to 52.7% in FY23. For Q4FY24, gross margins were 56.0%. EBITDA for FY24 was Rs 4,187 million as compared to Rs 4,118 million in FY23. Noteworthy is the improvement in margins from 21.9% in FY23 to 24.3% in FY24, up 247 bps. For Q4FY24, EBITDA margins were 21.1%. Net profit stood at Rs 2,112 million in FY24, up 10%. EPS for the year stands at Rs 21.12 as compared to Rs 19.22 in FY23. Commenting on the financial results, Executive Director Chirag Satia, said: “FY24 demonstrated our resilience. Despite facing industry headwinds, we are pleased to have improved our profitability this year. This success was driven by our strong relationships with state textbook boards and our stringent expense control. For FY24, our revenues were Rs 17,208 million. Although this represents a decline due to lower paper prices, it is noteworthy that our volumes remained steady. Currently, we have a strong order book covering more than one month of revenues. These orders provide a buffer against adverse industry impacts. During Q4 FY24, we observed a decline in both paper and raw material prices. Notably, the prices of wheat straw and agro pulp dropped significantly, positively impacting our profitability this quarter. We capitalized on this by increasing the use of agro pulp, further enhancing our savings and margins. While wood pulp prices rose, our existing inventory cushioned the impact on this quarter's performance. Satia Industries remains steadfast in its commitment to enhancing operational efficiencies and optimizing resource utilization. Our focus on continuous improvement across projects enables us to effectively address challenges. We are pleased to announce the successful commissioning of our 75 TPH muilti fuel boiler. Looking ahead, we are well positioned to leverage our synergies from our strategic initiatives and remain confident in our ability to navigate any external industry challenges. Our commitment to delivering shareholder value remains steadfast, achieved through stable revenue streams, strategic cost management, and targeted investments. We maintain optimism about the future despite current market conditions and are confident our focused efforts will propel us on a positive trajectory.” Result PDF
Paper & Paper Products company Satia Industries announced Q1FY24 results: Revenue from operations increased by 15% on YoY from Rs 4,170 million in Q1FY23 to Rs 4,812 million in Q1FY24, led by higher sales realization. During Q1FY24, our gross profit margins have improved to 59.1% from 47.7% in Q1FY23 and remain steady on sequential basis. It was 59.6% in Q4FY23. The EBITDA increased by 114% on YoY basis to Rs 1,493 million in Q1FY24 from Rs 699 million in Q1FY23 led by higher realizations and lower cost of materials consumed. EBITDA margin improved for the fourth consecutive quarter to 31.0% in Q1FY24. Net profit stood at Rs 841 million in Q1FY24, compared to Rs 302 million in Q1FY23, a growth of 178% YoY. EPS for Q1FY24 was Rs 8.4 as compared to Rs 3.0 in Q1FY23. During Q1FY24, the company has prepaid term loans of Rs 342.7 million. Commenting on the financial results, Executive Director Chirag Satia, said, “We are thrilled to unveil our company's exceptional performance in the face of a challenging external landscape. Despite these challenges, our dedication and strategic approach have yielded remarkable results. The Revenue from Operations has increased by 15% yoy in Q1FY24. Notably, our EBITDA also achieved significant progress as well, and increased by 114% YoY to reach Rs 1,493 million. This impressive growth can be attributed to a combination of factors, including a robust upswing in volume and the favourable effects of improved economies of scale. As a result, our EBITDA margins have soared to 31.0% during this quarter, representing the highest margin achievement in our company's history. These remarkable results are a direct outcome of our commitment to streamlining operations, optimizing resource allocation, and enhancing overall operational efficiency. These efforts have had a direct impact on our improved EBITDA margins, further reinforcing our ability to navigate challenges effectively. Looking ahead, we maintain a positive outlook for the coming year, as we expect to witness sustained healthy volume growth. Our strong partnerships with state boards, coupled with a promising demand outlook for the Printing & Writing Papers segment, provide a solid foundation for this anticipated growth trajectory. Furthermore, our company's commanding position in the state's textbook segment translates into substantial revenue visibility for the medium term. This robust order book underscores our stability and positions us favourably to capitalize on market opportunities.” Result PDF
Paper & Paper Products company Satia Industries announced Q4FY23 & FY23 results: Q4FY23: Revenue from operations increased by 75% on YoY from Rs 2,970 million in Q4FY22 to Rs 5,206 million in Q4FY23 During the quarter, our gross profits have improved to 59.6% from 52.9% in Q3FY23 and 50.3% in Q4FY22 EBITDA increased by 136% on a YoY basis from Rs 576 million in Q4FY22 to Rs 1,362 million in Q4FY23 EBITDA Margin improved for the third consecutive quarter to 26.16% Net profit stood at Rs 463 million in Q4FY23, compared to Rs 296 million in Q4FY22, a growth of 56% YoY Volume grew exponentially from 42,785.12 MT in Q4FY22 to 53,428.06 MT in Q4FY23 due to a rise in demand for premium products and the operationalization of PM4 EPS for the quarter was Rs 4.63 as compared to Rs 2.96 in Q4FY22 FY23: Revenue for FY23 were Rs 18,837 million, a growth of 111% YoY FY23 EBITDA Rs 4118 million with margins of 21.9%, an increase of 112 bps from FY22 Net Profit was Rs 1922 million, a growth of 91% over FY22 For the full year, EPS was Rs 19.22 vs Rs 10.07 in FY22 During FY23, the company repaid term loans of Rs 1,094.02 million, out of which the company has prepaid term loans of Rs 86.80 million. Further, the company has prepaid Rs 263.80 million in April’23 For FY23, Satia Industries has declared an equity dividend of 40% Commenting on the financial results, Executive Director Chirag Satia, said: “We are delighted to report that our company has had an outstanding quarter and fiscal year in terms of revenue. The Revenue from Operations has increased by 75% in Q4 of FY23 vis-à-vis Q4 FY22 and by 111% in FY23 as compared to FY22. We also saw a growth in EBITDA by 136% in the last quarter on a YoY basis. Our exceptional results were achieved through a combination of factors like strong customer demand resulting in increased sales volume, improved pricing, and lower cost of materials. We are anticipating a healthy volume growth in the coming year as well considering our strong relationships with state boards and healthy demand outlook for Printing & Writing Papers. The management anticipates a 5% to 10% increase in paper production on a year-over-year basis. The company's strong order book position in the state's textbook segment provides massive revenue visibility in the medium term. The paper and packaging industry in India is experiencing rapid expansion and is poised for significant future growth, particularly with the increasing literacy rate. Also, the successful implementation of the NEP will be critical for our segment. If fully implemented, it has the potential to generate an additional demand that is almost equivalent to the annual demand we currently experience.” Result PDF
Paper manufacturing company Satia Industries announced Q2FY23 results: Revenue from operations increased by 146% on a YoY basis from Rs.1,867.7 million in Q2FY22 to Rs.4,592.8 million in Q2FY23, mainly driven by better product mix and higher sales realization. The EBITDA increased by 160% on a YoY basis from Rs.355.5 million in Q2FY22 to Rs.924.7 million in Q2FY23 led by higher sales volume and higher realizations in the products. Net profit stood at Rs.508.2million in Q2FY23, compared to Rs.202.7million in Q2FY22 Volume grew exponentially from 33090 MT in Q2 FY22 to 52000 MT in Q2 FY23 due to a rise in demand of premium products and the operationalization of PM4. EPS grew by 151% from Rs.2.03 in Q2FY22 to Rs.5.08 in Q2FY23. Return On Capital Employed for H1FY23 is 23.2% Return On Equity for H1FY23 is 25.9%. Commenting on the financial results, Executive Director Mr. Chirag Satia, said: “We are pleased to deliver an excellent quarter and fiscal in terms of volume as well as increased profits. The Revenue from Operations has increased by 10.1% in Q2 FY23 vis-à-vis Q1 FY23 mainly on the back of robust demand leading to higher sales volume with better realization. With the commitment and persistent efforts of the management and better utilisation of resources, we have recorded a growth in EBITDA margins by 338 bps in the current quarter as compared to the EBITDA margins in Q1 FY23. The Educational sector along with increased exports leads to the demand for paper across the nation and our strong association with the various State Textbook corporations provides us with a competitive edge. The current order book in hand stands at 55 days with an attractive price realization. Despite key raw materials like agro, wood chips, and waste paper (Indian) witnessing a significant rise in H1 FY23, our locational advantage of being in India's wheat belt has given us an edge over other players. This, along with cheap fuel from rice straw & other biomass, and strong backward integration from power to chemical requirements, aid in limiting the impact of macro headwinds and retaining relatively healthy margins for H1FY23. We are glad to share that with the successful commissioning of PM4, we have added 100,000 TPA to our installed capacity, taking our total installed capacity to 205,000 TPA. We have imported this machinery from France, and it is one of the most advanced paper machinery in India. We estimate our revenues to grow by more than 90% with an increase in profits for FY23” Result PDF
Paper and Paper Products company Satia Industries announced Q3FY22 results: Revenue from operations reported at Rs 2162.99 MN in Q3FY22 and Rs 5939.77 MN for 9MFY22 EBITDA stands at Rs 390.96 MN in Q3 FY22 and Rs 1249.43 MN for 9M FY22 PAT at Rs 292.48 MN in Q3 FY22 and Rs 715.86 MN for 9M FY22 Revenue from operations increased by 51.68% from Rs 1426.02 MN in Q3 FY21 to Rs 2162.99 MN in Q3 FY22 mainly driven by higher realizations in our products across the board. Other Income includes Income from REC of Rs.81.00 MN and Rs.30.90 MN from Fair Value Gain, recognized through Profit and Loss Account in the biological assets. The EBITDA increased by 62.67% from Rs 240.34 MN in Q3 FY21 to Rs 390.96 MN in Q3 FY22 led by surge in sales of value added and high margin products. Cost of Materials Consumed increased by 12% mainly due to rise in prices of chemicals and raw material which was largely off-set by the tremendous increase in sales volume and price realizations. EBIDTA margins were 18.07% in Q3 FY22 as compared to 16.85% in Q3 FY21. Net profit stood at Rs 292.48 MN in Q3 FY22, compared to Rs 35.99 MN in Q3 FY21 PAT margins increased to 13.38% in Q3 FY22 from 2.58% in Q3 FY21 Volume grew from 32,125 tonnesin Q3 FY21 to 33,418.04 MT in Q3 FY22 due to rise in increased demand with economic activity sustaining normalcy. EPS for Q3 FY22 is Rs.2.89 versus Rs.0.37 in Q3 FY21. Commenting on the performance of Q3 FY22 and 9M FY22, Mr. Chirag Satia, Executive Director said: “We have delivered an excellent quarter in terms of volume as well as increased profits. The Revenue from Operations has increased by 51.68% in Q3 of FY22 mainly due to increase in demand of our products and our ability to deliver right product serving the need of the customers. With the commitment and persistent efforts of the management and better utilisation of resources, we have recorded a tremendous growth in EBITDA margins by 122 bps in the current quarter. Despite the Omicron wave; the 2nd half of the Financial Year 2022 has witnessed the opening up of the economy which has led to significant rise in demand for paper and we have a strong order book in hand of over two months at attractive price realization. Our new production has already commenced and we expect to get minimum one and a half month additional production from the new Paper machine in this financial year. We look forward to much better performance in the 4th Quarter and estimate our revenue to grow by more than ~1.6x with substantial increase in profit for FY23. We are very confident that with fructification of our capex plans for new capacity, venturing into new high growth potential green products and with adoption of latest technologies; we look forward to great benefits for all our stakeholders in the future.” Result PDF