Satia Industries has a strong order book covering more than one month of revenues, despite a decline in revenues due to softness in pricing in FY24

Satia Industries has a strong order book covering more than one month of revenues, despite a decline in revenues due to softness in pricing in FY24

Key Highlights: 
- 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%. 
- Net profit stood at INR 2,112 Mn in FY24, up 10%. 
- Satia Industries successfully completed the commissioning of 75 TPH multi fuel boiler. 
- SIL has a strong order book covering more than one month of sales. 

The Pulp and Paper Times | 28 May 2024

Satia Industries Limited (SIL), is one of the largest Wood and Agro-based paper manufacturer in India. It surprisingly overtook many of its peers in production achieve, to 2,13,804 MT in FY24 implying a capacity utilization of 98%. SIL has successfully commissioned their PM 4 and has augmented its total installed capacity to 219,000 MTPA.

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 INR 17,208 Mn in FY24. For Q4FY24, the revenues were INR 4,306 Mn.

Commenting on the financial results for FY 23-24 and Q4, Executive Director Mr. 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 INR 17,208 Mn. 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.

He further said, 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.”
 

Web Title: Satia Industries has a strong order book covering more than one month of revenues, despite a decline in revenues due to softness in pricing in FY24