Satia Industries maintains healthy order book despite soft demand and rising imports of paper

Satia Industries maintains healthy order book despite soft demand and rising imports of paper
Key Highlights
-Satia Industries reported a steady volume growth of 1.4% YoY for 9MFY25.
-Revenue grew 10% QoQ to INR 3,758 Mn during Q3FY25 as compared to INR 3,401 Mn during Q2FY25, while it contracted 14% YoY on account of pricing challenge due to increased imports and muted demand. For 9MFY25, revenue was INR 11,153 Mn. 
-Gross margins compressed from 55.2% in Q3FY24 to 49.2% in Q3FY25. Gross margins for 9MFY25 were 53.6%. The margins were impacted due to lower realisation in line with the industry. e 
-Net profit stood at INR 198 Mn in Q3FY25, vs INR 123 Mn in Q2FY25 and INR 396 Mn in Q3FY24. For 9MFY25, Net profit was INR 832 Mn. 
The Pulp and Paper Times:

Satia Industries Limited (SIL) one of the leading wood and agro-based paper manufacturer in India, announced its results for the third quarter ended December 31, 2024. Satia Industries reported a steady volume growth of 1.4% YoY for 9MFY25. SIL records INR 3,758 Mn Revenues in Q3FY25

Revenue grew 10% QoQ to INR 3,758 Mn during Q3FY25 as compared to INR 3,401 Mn during Q2FY25, while it contracted 14% YoY on account of pricing challenge due to increased imports and muted demand. For 9MFY25, revenue was INR 11,153 Mn. 

Commenting on the financial results, Executive Director Mr. Chirag Satia, said, “The Indian paper industry continued to face headwinds this quarter, with demand remaining soft and prices under pressure. Increased imports from China and other ASEAN countries have further intensified competition. Despite these challenges we are still carrying a healthy order book for over one month production.” 

Margins were negatively affected by lower prices though market has slightly started looking up with seasonal demand and with slight improvement in prices coupled with reduced fuel cost, we anticipate a sequential improvement in market conditions in Q4FY25. 

PM3 renovation project is progressing smoothly and is likely to be completed in the next financial year and is expected to increase production capacity once completed. New soda recovery boiler project is also underway to introduce latest technology and efficiency in the Soda recovery operations. 

Our cutlery business is going smooth and we plan to add 10 more Moulding machines in addition to existing 4 machines. New capacity is likely to be commissioned by the end this financial year. We hope to contribute towards environment protection by providing a viable alternative solution to use of plastic.
 

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