Savita Oil Technologies Limited has informed the Exchange about Investor Presentation
Savita Oil Technologies Ltd.
Investor Presentation – February 2023
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Savita Oil Technologies Limited (the “Company”),
have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of
the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes
no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and
reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you
may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which
are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The
risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our
ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly
skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions
regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case
any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by
or on behalf of the Company.
2
Q3 & 9M FY23 Financial Highlights
Q3 & 9M FY23 Performance Highlights
Revenue* (Rs. Cr)
EBITDA (Rs. Cr) EBITDA (Rs. Cr) EBITDA (Rs. Cr) EBITDA (Rs. Cr)
PAT (Rs. Cr) PAT (Rs. Cr) PAT (Rs. Cr) PAT (Rs. Cr)
10.8%
5.8%
7.5%
3.1%
Margin
777
920
84
59
53
29
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Revenue* (Rs. Cr) Revenue* (Rs. Cr)
EBITDA (Rs. Cr) EBITDA (Rs. Cr)
PAT (Rs. Cr) PAT (Rs. Cr) PAT (Rs. Cr)
13.6%
11.1%
9.3%
7.0%
2,691
291
297
198
189
2,139
“Despite a challenging business environment for our industry, during nine months period ending Dec-22 we delivered a 25.8% YoY increase in the total income at Rs. 2,691 crores. EBITDA for the period is at Rs. 297 Cr with a 2.1% improvement.
During the quarter under review, two critical components - Base Oils and the Exchange Rate have witnessed major volatility and both of these impacted us adversely. Base Oils Prices have fallen about 25% since June 2022 and the Indian rupee also depreciated significantly in the Quarter ending December, 2022. This resulted in inventory and foreign exchange losses which have impacted our margins. In this quarter we delivered, a total income of Rs. 920 crores with a growth of 18% on YoY basis.
In the past few quarters, we have focused on building an independent distribution network for our industrial lubricants and with this now in place we hope to rapidly scale up our industrial lubricant volumes in the next financial year. Also, we are excited about the new products developed by our R&D team that are being readied for commercial launch and this will open up new markets and a new customer base for us in the years ahead."
Mr. Gautam N. Mehra Chairman and MD
Key Highlights
› EBITDA per KL/MT at Rs. 4,342 for Q3 FY23 and at Rs. 9,225 for
9M FY23
9M FY22
9M FY23
9M FY22
9M FY23
9M FY22
9M FY23
On Consolidated Basis
*Includes other income
4
Consolidated Profit & Loss Statement
Profit and Loss (in Rs. Crs)
Revenue from Operations
Other Income
Total Income
Cost of Goods Sold
Employee Cost
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Finance Cost
Exceptional Item Gain / (Loss)
Profit before Tax
Tax
Profit After Tax
Profit After Tax Margin (%)
EPS (in Rs)
On Consolidated Basis
Q3 FY23
Q3 FY22
YoY
9M FY23
9M FY22
YoY
908.6
11.4
920.0
782.4
18.7
65.9
53.0
5.8%
5.1
47.9
10.9
0.0
37.0
8.3
28.7
3.1%
4.15
767.2
9.7
776.9
613.9
16.6
62.4
84.0
10.8%
5.4
78.6
3.9
0.0
74.7
16.2
58.5
7.5%
8.22
18.4%
-36.9%
-50.9%
2,674.8
2,110.0
16.6
2,691.4
2,105.1
59.9
229.0
297.4
11.1%
14.8
282.6
28.9
0.0
253.7
64.3
189.4
7.0%
27.39
29.0
2,139.1
1,630.0
55.6
162.1
291.4
13.6%
15.7
275.7
13.2
0.0
262.5
65.0
197.5
9.3%
28.28
25.8%
2.1%
-4.1%
5
Company Overview
SAVITA: A Leading Manufacturer of Petroleum Specialty Products…
Leading Manufacturer
in India across the product portfolio
Legacy of 60+ years
4
State of the Art, ISO Certified Manufacturing Plants
NABL Certified R&D Laboratory
Product Portfolio
Transformer Oils
Wide Reach
Petroleum Specialty Oils 76%
of Sales
White & Mineral Oils
Formulated Formulated Specialty Products Specialty Products
Lubricating Oils 22%
of sales
Automotive Oils
Industrial Oils
Rest 2% of Sales are contributed by others
Robust Financials
75+
countries
41
400
Stock points
Distributors
1,500
Franchisee Dealers
FY22 (Rs. Cr, unless mentioned otherwise)
2,969 Revenues
389 (13.1%) EBITDA
260 (8.8%) PAT
Rs. 9,091 EBITDA per KL/MT
Rs.25 Dividend per share
Uninterrupted record of dividend distribution since listing in 1994
Focus on Sustainability
53 MW
Installed renewable capacity
On Consolidated Basis
7
… with well insulated product portfolio catering to multiple industries
76%
Others
2%
FY22 Revenue Breakup
› Passenger Car Motor Oils
› Heavy Duty Diesel Engine Oils
› Motorcycle Engine Oils
› Other Specialty Products
› Hydraulic Oils
› Quenching Oils
› Metal Working Fluids
› Thermic & Heat Exchange Oils
› Refrigeration Compressor Oils
Automotive Oils
22%
Industrial Oils
Petroleum Specialty Oils
Transformer Oils
› Power & Distribution Transformers
› Switch Gears & Circuit Brakers
White & Mineral Oils
› Cosmetics
› Agriculture
› Personal Care
› Food Lubricants
› Plastics
› Packaging
› Pharmaceutical
› Paper
Formulated Specialty Products
› Optic Fibre Cables
› Textile & Leather
› Auto Components
› Polymers
› Refrigeration Compressors
› Construction Compounds
Lubricating Oils
On Consolidated Basis
8
Legacy of 60+ years
1961
1976
1994
2007
Incorporation by Late Mr. Nandkishore Mehra. Set up 1st manufacturing unit at Sakinaka, Mumbai to manufacture liquid paraffin as an import substitute
Set up first-of its- kind R&D Centre in the private sector oil industry.
Public issue and listing of SAVITA on the BSE and NSE
Associated with Idemitsu Kosan for Branded Lubricants
Launched SAVSOL, SAVITA’S own brand of lubricating oils
2015
Launched bioTransol
2020
Launched SAVSOL Bio Boost, one of India’s most biodegradable engine oils
Established manufacturing unit at Turbhe on the outskirts of Mumbai for the manufacture of petroleum specialties
Set up another manufacturing plant at Mahad in Maharashtra
Expanded manufacturing of petroleum specialties by setting up 4th manufacturing unit at Kharadpada, Silvassa
Re-launched SAVSOL in a new green avtaar
Set-up a fully automated, state-of-the-art manufacturing unit at Silli, Silvassa for the manufacture of entire range of petroleum specialty oils
1969
1989
1998
2013
2018
2021
9
Product Portfolio
1. Transformer Oils
Only global manufacturer of mineral, natural and synthetic ester-based transformer oils
› These oils are used as an insulating and cooling medium in distribution transformers, power transformers and
instrumentation transformers
› Offer a full range of Transformer Oils under “TRANSOL” brand
› Products delivered and tailor made to meet specifications for domestic and global customers
End User Industries
Key Customers
Key Growth Drivers
› Transformer
Manufacturers
› Electricity Boards
› Power Plant Operators
› Rising Investments over the next
decade in transmission segment to support higher generation capacity and rural electrification
› Rising demand for modernization of
aging grid infrastructure coupled with large scale capacity addition will boost the market
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
11
2. White & Mineral Oils
Amongst Top 2 Suppliers of White & Minerals Oils in India
› Offer wide range of highly refined specialty mineral oil based products under the “TECHNOL” and “SAVONOL” brand
› Also manufacture petroleum jellies like Ultima White, Snow White, Yellow Petroleum Jelly and other specific industrial
grade petrolatum's under the brand “Savogel”
› Key properties of this fluids are good lubricity, smoothness, softness and resistance to moisture in the formulations
End User Industries
Key Customers
Key Growth Drivers
› Personal Care
› Pharmaceutical
› Plastics
› Elastomers
› Rubber Compound
› The Indian personal care industry is witnessing a boom due to changing perceptions, growing awareness, and the rise of direct-to-consumer (D2C) companies making waves in the online retail space
› Growing demand of cosmetic and
pharma products from urban & rural India
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
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3. Formulated & Specialty Products
Leading supplier of Formulated & Specialty Products in India
› Specialized waxes and emulsions including paraffin wax emulsions, microcrystalline wax, Polyethylene wax, oxidized PE
wax and a range of wax emulsions. Wax Emulsion protect coating and ink surfaces for diverse applications
› Cable filling and flooding compounds for copper cables as well as Optic Fiber Cables under “Savofil”, “Savoflod” and
“Vitagel” brand names. This compound helps moisture tolerance, softness and stability at an extreme temperature
End User Industries
Key Customers
Key Growth Drivers
› Optic Fibre Cables
› Textile & Leather
› Auto components
› Polymers
› Refrigeration Compressors
› Construction Compounds
› The 5G Telecom spectrum auction held in 2022 and subsequent rollout of the network is expected to generate healthy demand for this product
› Growing demand from end user
market
› Government Linked PLI Scheme
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
13
4. Automotive Oils – B2C Segment (1/2)
Apart from a sizable B2B business, we market our popular SAVSOL range of lubricants, greases and coolants to retail customers
› The lubricant brand SAVSOL manufactures and markets high performance lubricants, fluids, coolants & greases and is
amongst the fastest growing lubricant brand of India
›
It has a comprehensive range of automotive lubricants meeting the growing demand for sustainable products in
various categories, i.e., Passenger Car Oils, Motorcycle Oils, Commercial Vehicle Oils, and Other Specialty Products
› SAVSOL portfolio has products which successfully meets the latest & stringent BS VI emission norms for automobiles
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
14
4. Automotive Oils – B2B Segment (2/2)
Leading supplier of Automotive Oils in India
› Savita Oil Technologies known for its high quality lubricant manufacturing with state-of-the-art plants and technology
centre has been amongst preferred supplier to automotive OEMs for a wide range of lubricant applications
› Trusted partner for leading automotive OEMs. Some of our OEM associations are existing for over two decades
› A fully equipped technical and quality control lab ensures high quality standards
End User Industries
Key Customers
Key Growth Drivers
› Two Wheelers
› Four Wheelers
› Commercial Vehicles
› Farm Equipment
Partnership for last
25+ Years
22+ Years
11+ Years
3+ Years
›
›
Low vehicle density - all global players focused on India story
Increase in per capita income and improved infrastructure leading to rise in vehicle ownership
› Expansion of OEM franchise workshop
network
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
15
5. Industrials Oils
Leading supplier of Industrial Oils in India
› Savita Oil Technologies has been a trusted partner to Industrial OEMs for a wide range of lubricant application needs.
›
It has an elaborate product portfolio under Brand “SAVSOL” catering to various Industrial applications and provides
excellent lubrication, performance and protection to different types of Machines and Industrial Equipment
› The exhaustive portfolio includes wide range of Hydraulic Oils, Turbine Oils, Thermic Fluids, Heavy Duty Industrial Gear
Oils, Transmission Oils, Greases, Heat Treatment (Quenching Oils), Metal Working Oils and other Specialty Oils
End User Industries
›
Industrial Machines & Equipment
Key Customers
Key Growth Drivers
› Maintenance of existing and new industrial machines & equipment
› Make in India – Increased manufacturing activity
› Enhanced infrastructure development
Partnership for last
25+ Years
7+ Years
1+ Years
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
16
Wide Distribution Reach
Extensive network of distributors & dealers PAN India
Global clientele across 75+ Countries
41 Stock points
12
400 Distributors
Domestic Presence
20,000 Retailers
1,500 Franchise Dealers
Exports
20%
FY22 Revenue Breakup
80%
Domestic
Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness.
On Consolidated Basis
17
State of the Art, ISO Certified Plants
Our facilities meet the growing demand for sustainable products and services. The multipurpose facilities help in delivering Competitively Priced Products with Highest Quality Standards
Unit I –Navi Mumbai
Unit II –Mahad, Savita Polymers
Unit III –Kharadpada, Silvassa
Unit IV –Silli, Silvassa
Setup
› 1969
› 1989
› 1998
› 2013
› Transformer Oils
› Formulated & Specialty Products
› Lubricating Oils
› Transformer Oils
Major Products
› White Oils
› Optic Fibre Compounds
› Specialty Oil Products
› White Oils
Zero Liquid Discharge
✓
› Compressor Oils and Chain
Lubricants
Discharge treated through common ETP
✓
✓
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Focused on Product Innovation - Geared for Tomorrow
Future Ready Products
bioTransol
Launched in 2015, making SAVITA, first company offering both Mineral and Ester based insulation solutions.
Heavy Duty Diesel Engine Oil meeting API CK-4 & Cummins 20086 spec for the new generation BS VI vehicles
Engine oil meeting TREM Stage-IV Emission norms for Tractors which have come in force from October 2021
Engine Oil meeting CEV-IV Emission norms for Construction Equipment Vehicles effective from April 2021
Synthetic Ester
Type tested in international and domestic laboratories, to be commercialised in 2023
Developed Jellies based on Natural Ingredients
Natural Petrolatums
range
Customized Petrolatum products crafted from plant based and natural ingredients
Launched DEF, which is mandated for all new diesel based BS VI vehicles, allowing them to reduce air pollution
Bio-degradable and Oleochemical solutions
19
Strategic Priorities
1. 1
Widen Distribution Network
› Accelerate expansion of Industrial distribution network in identified segments is a key
pillar for Savsol Growth Strategy
Innovation for Sustainable Products
Launched Synthetic Ester in FY22
› › This fluid is amongst the most robust fluids for Transformers and will allow SAVITA to offer
the entire range of Transformer Fluid Solutions unlike any other company
› Expand Product Portfolio with environment friendly products
Augment Value Added Product Portfolio
Initiatives to support governments vision of circular economy
› › Adding higher value products in chemical sphere through organic or inorganic ventures
20
Well Positioned to Capture Growth
Optimum Business Mix
Well positioned across product portfolio - Transformer, Industrial, Auto and Non Auto Segments
Innovative Products
Launching new product innovations across different categories e.g. Synthetic Esters
Distribution
Accelerate expansion of Industrial distribution network is a key pillar for Savsol Growth Strategy
Capacity Expansion
Continued investments in increasing capacity to compete effectively with a comprehensive, balanced product portfolio
Premium & Mid-Premium Offerings
Continued focus to increase share in Mid-Tier and Top-Tier product categories
Branding
Striving to become a sustainable, trustworthy brand. Poised to grow faster than category growth
21
Board of Directors
Gautam Mehra, Chairman & Managing Director
Suhas Dixit, CFO & Whole time-Director
Siddharth Mehra, Whole Time Director
Three decades of Experience B.E. (Chem), M.B.A. from University of California (Berkeley)
› › › Under his leadership and guidance, the Company has successfully led the core business of Petroleum Specialties to new heights year after year
›
›
40 years of experience in the fields of Accounting, Finance and Taxation Chartered Accountant & Cost Accountant
› More than 7 years of experience › Holds a B. Sc in Technical Systems Management from University of Illinois (USA) & Master’s degree of Science in Management from London School of Economics and Political Science › Actively involved in the field of Business Development &
Marketing
Meghana Dalal, Independent Director
Ravindra Pisharody, Independent Director
Hariharan Sunder, Independent Director
›
›
Three decades of experience and has specialized in Management of Corporate Emoluments across various Industries Commerce graduate and fellow member of Institute of Chartered Accountants of India
› Director of Chetan Dalal Investigation and Management Services
Private Limited
› 35 year of executive experience › B. Tech from IIT, Kharagpur and PGDM from IIM, Calcutta › National, Regional and Global leadership roles in Sales &
Marketing, Strategy Development
›
35 years of experience in finance, taxation, accounts, legal, secretarial, international business B.COM & Chartered Accountant
› › General corporate management including stints with Raymond Limited and Jost’s Engineering Company Limited among others
22
Key Certificates
23
Responsible Corporate
› High Focus on Energy Saving
›
›
Installed and commissioned Roof Top Solar Units at the 4 plants with combined capacity in excess of 650 KWp
Investing in renewable energy installations since 1999 with over 53 MW of installed capacity
Partnered with Bhaktivedanta Hospital & Research Institute for the construction of General Operation Theatres and purchase of X-Ray and Diagnostic Machines & Equipments in the New Hospital Building at Mira Road, Thane, Maharashtra
Sponsored Akshaya Patra Foundation’s activities, which provided mid-day meals to 10,000+ children in Silvassa
Supported Akshay Patra Foundation with five food delivery vehicles to reach out to more malnourished and food-deprived children
E
S
› The company’s internal control systems are in line with size, scale and complexity of its operations
› Have suitable Risk Management Framework
› Promotes ethical behaviour in all its
business activities and has Whistle Blower Policy
› The Company is a member of:
− Confederation of Indian Industry (CII)
− Bombay Chamber of Commerce and Industry
(BCCI)
− Indian Merchant Chamber (IMC)
− Indian Electrical & Electronics Manufacturers’
Association (IEEMA)
− Indian Transformer Manufacturers Association
(ITMA)
− Electrical Research and Development Association
(ERDA)
− CHEMEXCIL
− Manufacturers of Petroleum Specialties
Association (MOPSA)
G
24
Historical Highlights
Standalone Historical Financial Highlights
Revenue* (Rs. In Crs)
EBITDA (Rs. In Mn) EBITDA (Rs. In Crs) EBITDA (Rs. In Crs)
PAT (Rs. In Mn) PAT (Rs. In Crs) PAT (Rs. In Crs)
10.9%
9.4%
8.1%
17.1%
13.1%
7.0%
5.0%
4.6%
11.5%
8.8%
2,281
1,792
+12%
2,058
1,944
2,853
+18%
332
374
+19%
224
250
196
215
167
126
114
96
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
ROE(%)
ROCE (%)
18%
14%
11%
23%
21%
34%
32%
27%
27%
19%
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
On Standalone Basis
*Includes other income
26
Standalone Historical Financial Highlights (Petroleum Products)
Petroleum Products Revenue (Rs. In Crs)
1,769
Petroleum Specialty
1,238
Lubricating Oils
531
FY18
2,204
1,605
599
FY19
1,990
1,869
1,446
1,376
544
FY20
494
FY21
2,773
2,118
656
FY22
1,769
Domestic
84%
Exports
16% FY18
2,204
85%
15% FY19
1,990
1,869
85%
15% FY20
86%
14% FY21
2,773
81%
19%
FY22
Petroleum Products Volumes (KL/MT)
Realization (Rs. Per KL/MT)
EBITDA (Rs. Per KL/MT)
3,00,304
3,46,235
3,39,162
3,18,971
3,79,484
58,892
63,668
58,662
58,605
73,084
9,598
9,016
5,273
5,060
4,011
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
On Standalone Basis
The above data excludes trading income, other income and wind power business
27
Consolidated Historical Financial Highlights (Petroleum Products)
Petroleum Products Revenue (Rs. In Crs)
1,970
Petroleum Specialty
1,477
Lubricating Oils
494
FY21
2,895
2,239
656
FY22
1,970
Domestic
84%
Exports
16% FY21
2,895
80%
20%
FY22
Petroleum Products Volumes (KL/MT)
Realization (Rs. Per KL/MT)
EBITDA (Rs. Per KL/MT)
3,92,706
3,32,135
57,023
44,467
9,766
9,091
FY21
FY22
FY21
FY22
FY21
FY22
On Consolidated Basis
The above data excludes trading income, other income and wind power business
28
Consistent Record of Dividends Since Listing in 1994
Dividend Per Share (Rs.)
135%
2.7
FY17
25%
0.5 FY15
50%
1.0
FY16
No. of shares
Value (Rs. Cr)
25%
0.5 FY19
25%
0.5 FY18 Buyback of Shares
14,00,000
Rs 44.94
250%
5.0
FY22
Dividend Per Share
200%
4.0
150%
3.0
FY20 Buyback of Shares
FY21 Buyback of Shares
12,55,000
12,55,000
Rs 40.28
Rs 35.10
On Standalone Basis
Above data are adjusted to stock spilt of 1:5 shares
29
Track record of consistent performance
Consistent record of Dividends since listing in 1994
Healthy cash generation over the years
Debt free balance sheet
₹
₹
₹
Consistent track of profitability despite market volatility
Longstanding relationships with customers and vendors
₹
₹
₹
Robust manufacturing capabilities
30
Thank You
Company:
Savita Oil Technologies Ltd. CIN- L24100MH1961PLC012066 Mr. Uday Rege - Company Secretary & Executive VP - Legal Email - legal@savita.com www.savita.com
Investor relations advisor:
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Ms. Shikha Puri / Mr. Shrikant Sangani Email - shikha.puri@sgapl.net/ shrikant.sangani@sgapl.net +91 9819282743 / +91 9619595686 www.sgapl.net