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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.”
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