Satia Industries Limited has informed the Exchange regarding Investor Presentation
·?4SATIA
LIMITED
? ?
INDUSTRIES
An
ISO 9001,
14001
& OHSAS
18001
company
Manufacturer
of Quality
15
_
1848
CIN:
- L21012PB1980PLC004329
Writing, Printing & Speciality [B)r(?
ECO
MARK
?
with
Paper
Sil/CS
Date:
15.11.2019
The Manager Listing Department BSE
Limited
Phiroze
Jeejeebhoy
Towers
Dalal
Street
Mumbai-400001
Scrip Code:
.
539201
Dear
Sir/Madam,
The Manager, Listing Department, National Ltd, Exchange Plaza, G- Block, Bandra Bandra
Symbol:
SATIA
Stock Exchange of
India
Plot No. C/1, Kurla Complex,
(East), Mumbai-400051
Sub:
Submission
of Analyst/
Investor
Presentation
Pursuant Requirements) /Q2-FY20
to Regulation
30
of
the
SEBI
Regulation
,2015 please find
(Listing Obligation Earnings
enclosed
and
Disclosure
Presentation
Hl
Thanking you
Yours
For Satia
faithfully, Industries
Limited
1'Qt1? CJ Dhuria)
(Rakesh Kumar Company Secretary
Registered Office & Mill : VillageRupana, Sri Muktsar Sahib-152 032, Punjab, India. Ph.: 2p2001,262215,263585
Fax : 01633-263499
.
email: satiapaper@gmail.com
I
Branch:
Branch:
Branch
613-615, Naurang House, 21, K.G. Marg,Connaught Place, New Delhi-110001 8. C, Madhya Marg, Chandigarh -160018 S.C.O. No. 90. 92, Sector : 304, Navjeevan Complex, 29, Station Road, Jaipur-302006, Rajasthan Ph.: 2371055, 2379554
Ph.: 0172-2780022/23, 4618377
Ph.: 23710351/52/53
Fax:
23718191
e-mail:
Fax: 0172-4648600,
Fax:
0141-2374433
e-mail:
satiapaper@rediffmail.com satiaindustriesltd@gmail.com satiapaper.jpr@gmail.com
SIL·
005180
SATIA INDUSTRIES LIMITED
EARNINGS PRESENTATION H1 / Q2-FY20
?SATIAINDUS RIES LIMITED ?AN
1•oo&OHSAS
COMPANY
S0900
18001
,
1
Executive Summary
Company Overview
Key Clientele
• Incorporated in 1980, Satia Industries Limited (SIL), is one of the biggest and completely integrated Wood and Agro based paper manufacturers. • SIL’s products are extensively used in the printing of books, directories, envelopes, diaries, calendars, computer stationery, copy manufacture annual reports, etc.
• SIL has long standing relationship with State Text book Corporations and around 40% of revenue comes from these organisations.
• The remaining revenue attributes to the Public and Sector Companies.
Private
Manufacturing and Distribution Network
FY19 Financial Snapshot
• Manufacturing
of plant Muktsar with capacity to manufacture over 1,05,000 MT per annum.
based
out
• Completely
integrated manufacturing operations with 3 paper machines, 100% in-house power generation and effluent treatment.
• Strong Distribution Network: 70 dealers
and 3 branch offices.
Operational Revenue INR 7,384 Mn
EBITDA INR 1,641 Mn
EBITDA Margin 22.22%
PAT INR 878 Mn
PAT Margin 11.89%
ROE 29%
ROCE 26%
2
About The Company
• Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its
commercial production of printing and writing paper at Muktsar, Punjab in 1984.
• SIL is one of the biggest Wood and Agro based paper plants in India manufacturing
paper using wood chips, veneer waste, wheat straw, sarkanda, etc.
• The Company has a fully integrated manufacturing facility, which includes paper
machines, pulping machinery, chemical recovery plant and power generation plant.
• Fully integrated production facility gives superior advantage in terms of cost efficiency and environmental compliance, ultimately leading to superior margin profile compared to peers.
• With a view to improve the quality of pulp and also to save on cooking chemicals, a
Continuous Digester has been installed by the Company.
• The product profile includes Super Snow White, Snow White, Photocopier paper, Map litho, Colored paper, Ledger paper, Cartridge paper, Duplicating, bond paper - with and without watermarks and Chromo (Art) paper from GSM range 42 to 200 GSM.
• Satia Industries Limited market its product through dealer network located all over
India and through Branches at Jaipur, Delhi & Chandigarh.
Operational Revenue (INR Mn) & EBITDA Margin (%)
7,384
6,421
5,708
4,336
12%
16%
19%
22%
21%
4,283
FY16
FY17
FY18
FY19
H1-FY20
Revenue (INR Mn)
EBITDA Margins %
Raw Materials Used of Total Volumes
Waste Paper Based 5%
Wood Based 30%
Agro Based 65%
3
Capex Plan
Agro – Residue
Wood chips
Waste Paper
CRP
In-house power generation
Current Capacity 1,05,000 MT of Paper
Capex of INR 500 Cr
Capacity Expansion of 1,00,000 MT of Paper
Updates • Additional land has already been
purchased
• Set of Equipments & Machinery
has already been ordered
• Final Hearing for environmental compliance is expected to take place with the Ministry of Environment & Forests, Delhi • Finances have been tied up for
the project
Plant to be commissioned by the end of Q4-FY21
Funding
Internal Accrual 35%
Debt 65%
A similar greenfield capacity expansion of 300 TPD would cost around INR 1,000 Cr and would take a timeline of around 40 months to be operational.
4
Paper Cutlery Segment
• Prime Minister Sh. Narendra Modi gave an ambitious call to eliminate all single-use plastic products in the country by 2022 and SIL plans to make most of this opportunity in the national movement to replace plastic and styro foam from food delivery packaging with sustainable packaged products
• The company has already entered into Virgin fibre based Cup stock segment and plans to venture into the paper cutlery segment with an initial capital outlay of INR 15-18 Cr
• To establish this segment SIL has plans to enter into a partnership with an MNC
which is one of the world’s largest leading food brands
• SIL will be producing the finishing products of sustainable packaging and the marketing operations will be handled by the proposed Associate in India and abroad
• Target for commencement of production is Q1-FY21
Initial Production Capacity of 8 TPD
To be enhanced to 32 TPD
Online food delivery is fuelling substantial acceleration in food packaging demand. We expect this segment to gain traction by FY21.
5
H1 / Q2-FY20 Financial Overview
?SATIAINDUS RIES LIMITED ?AN
1•oo&OHSAS
COMPANY
S0900
18001
,
6
H1 / Q2-FY20 Financial & Operational Highlights
Q2-FY20 Financial Highlights
H1-FY20 Financial Highlights
Operational Revenue
INR 2,039 Mn
Operational Revenue
INR 4,283 Mn
EBITDA
EBITDA Margin
Net Profit
PAT Margin
Diluted EPS
Operational Highlights:
INR 435 Mn
EBITDA
21.33%
EBITDA Margin
INR 250 Mn
Net Profit
12.26%
INR 25.04
PAT Margin
Diluted EPS
INR 914 Mn
21.34%
INR 515 Mn
12.02%
INR 51.50
•
•
•
Since the company generates Renewable Energy Certificates, the company encashed around INR 6.9 Cr of REC certificate in H1-FY20.
The current order book stands executable for the next 2 months through our strong dealer network.
SIL in an effort to stay ahead of the curve had already started the production of Virgin fibre based cup stock and to continue in this endeavor SIL plans to introduce a Paper Cutlery segment with an effort to contribute to the national movement of Single Use Plastic ban. The company plans to initiate this segment with a 8 TPD production capacity and plan to enhance it to 32 TPD.
7
Quarterly Financial Trends
Operational Revenue (INR Mn)
1,866
2,245
2,039
EBITDA (INR Mn) EBITDA Margin (%) 478
436
435
23.4%
21.3%
21.3%
PAT (INR Mn) PAT Margin (%) 264
250
241
12.9%
11.8%
12.3%
18. 00%
16. 00%
14. 00%
12. 00%
10. 00%
8.0 0%
6.0 0%
4.0 0%
2.0 0%
0.0 0%
30. 00%
25. 00%
20. 00%
15. 00%
10. 00%
Q2-FY19
Q1-FY20
Q2-FY20
Q2-FY19
Q1-FY20
Q2-FY20
Q2-FY19
Q1-FY20
Q2-FY20
Interest Coverage Ratio
Gearing Ratio
Gross Current Assets Days
8.4
8.0
8.5
0.8
0.7
0.7
90
79
108
Q2-FY19
Q1-FY20
Q2-FY20
Q2-FY19
Q1-FY20
Q2-FY20
Q2-FY19
Q1-FY20
Q2-FY20
8
Q2-FY20 Income Statement (IND-AS)
PARTICULARS (INR Mn)
Operational Income
Total Expenses
EBITDA
EBITDA Margin
Other Income
Depreciation
Finance Cost
PBT
Tax
Profit After Tax
PAT Margin
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR ) (Not Annualised)
Q2-FY20
Q2-FY19
2,039
1,604
435
1,866
1,430
436
Y-O-Y
9.3%
12.2%
(0.2)%
Q1-FY20
2,245
1,767
478
21.33%
23.36%
(203) Bps
21.29%
67
132
51
319
69
250
33
112
52
305
64
241
NA
17.9%
(1.9)%
4.6%
7.8%
3.7%
50
131
60
337
73
264
12.26%
12.92%
(66) Bps
11.76%
1
251
25.04
(2)
239
24.06
NA
5.0%
4.1%
1
265
26.45
Q-o-Q
(9.2)%
(9.2)%
(9.0)%
4 Bps
34.0%
0.8%
(15.0)%
(5.3)%
(5.5)%
(5.3)%
50 Bps
NA
(5.3)%
(5.3)%
9