Satia Industries Limited has informed the Exchange regarding Investor Presentation/earning presentation for the 9 M/Q3 FY20
An ISO 9001,14001
& OHSAS 18001 company
ClN: - L21012PB1980PLC004329
Manufacturer
Writing, Printing & Speciality (B)rer
of Quality
IS .1848
Paper with
ECO MARK
~
SIljCS
Date: 12.02.2020
The Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400001 Scrip Code: 539201
Dear SirjMadam,
The Manager, Listing Department, National Stock Exchange of India Ltd, Exchange Plaza, Plot No. Cf1, G- Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 Symbol: SATIA
Sub: Submission of Earnings Presentation 9MJ Q3-FY20.
Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulation ,2015 please find enclosed Earnings Presentation 9MJ Q3-FY20.
Thanking you
Yours faithfully, For Satia Industries Limited
'LIVI/~cr (Rakesh Kumar Dhuria) Company Secretary
Registered Office & Mill: Village Rupana, Sri Muktsar Sahib-152 032, Punjab,
India. Ph.: 262001, 262215, 263585 Fax: 01633·263499 email: satiapaper@gmail.com
613-615, Naurang House, 21, K.G. Marg, Connaught Place, New Delhi-110001 Ph.: 23710351/52153 Fax: 23718191 e-mail:
Branch: Branch: S.C.C. No. 90 - 92, Sector 8 - C, Madhya Marg, Chandigarh -160018 Ph.: 0172-2780022123, 46183n Fax: 0172-4648600, Branch:
304, Navjeevan Complex, 29, Station Road, Jaipur-302006, Rajasthan Ph. : 2371055, 2379554 Fax: 0141-2374433 e-mail:
satiapaper@rediffmail.com satiaindustriesltd@gmail.com satiapaper.jpr@gmail.com
SIL·006154
SATIA INDUSTRIES LIMITED
EARNINGS PRESENTATION 9M / Q3-FY20
~SATIA ~AN
INDUSTRIES LIMITED
SO«lOII400&Clt<SASleoo,cOM_V
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, annual copy manufacture reports, etc.
• SIL has long standing relationship with State Text book Corporations around 40% of and revenue from these organisations. • The remaining revenue attributes to the Public and Sector Companies.
Private
comes
Manufacturing and Distribution Network:
FY19 Financial Snapshot
• Manufacturing plant based out of Muktsar with capacity to manufacture over 1,25,000 MT per annum. • 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
16%
19%
12%
22%
22% 6,296
FY16
FY17
FY18
FY19
9M-FY20
Revenue (INR Mn)
EBITDA Margins %
Raw Materials Used of Total Volumes
Waste Paper Based 5%
Wood Based 30%
Agro Based 65%
3
9M / Q3-FY20 Financial Overview
~SATIA ~AN
INDUSTRIES LIMITED
SO«lOII400&Clt<SASleoo,cOM_V
4
Q3-FY20 Financial Highlights
Q3-FY20 Financial Highlights
9M-FY20 Financial Highlights
Operational Revenue
EBITDA
EBITDA Margin
Net Profit
PAT Margin
Diluted EPS
2,012
463
23.02%
243
12.08%
2.43
Operational Revenue
EBITDA
EBITDA Margin
Net Profit
PAT Margin
Diluted EPS
6,296
1,377
21.87%
758
12.04%
7.58
5
Q3-FY20 Operational Highlights
• During the quarter, SIL got the environmental clearance for its proposed expansion of paper production from 300 TPD to 600 TPD
along with CPP of 14 MW located at Village Rupana, District Muktsar, Punjab.
• Satia has successfully done the financial closure of the proposed expansion plan. With this, the company is now fully confident of moving ahead at full pace and have plans to complete the civil work, plant erection and commissioning and trial run before the end of the financial year 2021.
• Achieved over 11% increase in both production and sales of paper on YoY basis • Company has a strong order book of over 20,000 MT paper – almost two months order book • New orders from Telgu Academy, Hyderabad; Jharkand and UP basic education paper for books expected in this quarter • Company has successfully increased its price realisation in the market by INR 3,000 / MT • Company has shortlisted supplier for table cutlery segment and shall finalise machinery order once corona virus problem ends
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Quarterly Financial Trends
Operational Revenue (INR Mn)
EBITDA (INR Mn) EBITDA Margin (%)
PAT (INR Mn) PAT Margin (%)
1,732
2,039
2,012
406
23.4%
435
463
30. 00%
25. 00%
21.3%
23.0%
20. 00%
15. 00%
10. 00%
165
9.5%
250
12.3%
243
18. 00%
16. 00%
14. 00%
12.1%
12. 00%
10. 00%
8.0 0%
6.0 0%
4.0 0%
2.0 0%
0.0 0%
Q3-FY19
Q2-FY20
Q3-FY20
Q3-FY19
Q2-FY20
Q3-FY20
Q3-FY19
Q2-FY20
Q3-FY20
Interest Coverage Ratio
8.4
8.5
9.9
0.8
Gearing Ratio
0.7
0.7
Gross Current Assets Days 108
99
88
Q3-FY19
Q2-FY20
Q3-FY20
Q3-FY19
Q2-FY20
Q3-FY20
Q3-FY19
Q2-FY20
Q3-FY20
7
Q3-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)
Q3-FY20
Q3-FY19
Y-O-Y
Q2-FY20
2,012
1,549
463
1,732
1,326
406
23.02%
23.44%
24
131
47
309
66
243
26
126
58
248
83
165
12.08%
9.52%
1
244
2.43
(2)
163
1.65
16.17%
16.82%
14.04%
(42) bps
(7.69)%
3.97%
(18.97)%
24.60%
(20.48)%
47.27%
256 bps
NA
49.69%
47.27%
2,039
1,604
435
21.33%
67
132
51
319
69
250
12.26%
1
251
2.50
Q-o-Q
(1.32)%
(3.43)%
6.44%
169 bps
(64.18)%
(0.76)%
(7.84)%
(3.13)%
(4.35)%
(2.80)%
(1.47)%
NA
(2.79)%
(2.80)%
8
9M-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)
9M-FY20
9M-FY19
6,296
4,919
1,377
21.87%
140
394
158
965
207
758
5,399
4,209
1,190
22.04%
117
349
165
793
200
593
12.04%
10.98%
2
760
7.58
(6)
587
5.93
Y-O-Y
16.61%
16.87%
15.71%
(17)Bps
19.66%
12.89%
(4.24)%
21.69%
3.5%
27.82%
106 bps
NA
29.47%
27.82%
9
~SATIA
I~z:!l"~ 508001
INDUSTRIES LIMITED 1100' cOO.PANV
14olO"0HSIIS
Historical Financial Overview
10
Income Statement
PARTICULARS (INR Mn)
Operational Revenue
Total Expenses
EBITDA
EBITDA Margin
Other Income
Depreciation
Finance Cost
Extraordinary Items
PBT
Tax
Profit After Tax
PAT Margin
Other Comprehensive Income
Total Comprehensive Income
EPS (INR per share)
*As per IND-AS
FY16
4,336
3,801
535
FY17*
5,708
4,799
909
FY18*
6,421
5,203
1,218
FY19*
7,384
5,743
1,641
9M-FY20*
6,296
4,919
1,377
12.34%
15.93%
18.97%
22.22%
21.87%
165
332
251
(16)
101
(30)
131
211
400
245
-
475
20
455
303
451
237
-
833
146
687
145
477
208
-
1,101
223
878
140
394
158
-
965
207
758
3.02%
7.98%
10.70%
11.89%
12.04%
-
131
1.31
(2)
453
4.55
(8)
679
6.86
2
880
8.77
2
760
7.58
11
Balance Sheet (IND-AS)
H1-FY20 PARTICULARS (INR Mn)
PARTICULARS (INR Mn) Equity Equity Share Capital Other Equity
Non-Current Liabilities a) Financial Liabilities (i) Borrowings (ii) Other Financial liabilities b) Other Non-Current Liabilities c) Provisions
Current Liabilities
a) Financial Liabilities (i) Borrowings (ii) Trade Payables
(iii) Other Financial Liabilities
b) Current tax liabilities (net) c) Other Current Liabilities d) Provisions GRAND TOTAL - EQUITIES & LIABILITES
FY18 2,226 100 2,126
FY19 3,076 100 2,976
3574 100 3474
1,819
1,957
2072
910 837 3 69
1,054 823 3 77
1109 876 3 84
1,773
1,571
2256
676 447
468
- 164 18 5,818
537 454
516
13 44 7 6,604
783 630
662
58 116 7 7902
Non-Current Assets a) Property, Plant and Equipment b) Capital Work In Progress c) Financial Assets (i) Investments (ii) Loans (iii) Other financial assets d) Deferred Tax Asset (Net) e) Other Non-Current Assets
Current Assets a) Inventories b) Biological Assets other than bearer plants c) Financial Assets (i) Trade Receivables (ii) Cash and Cash Equivalents (iii) Bank balances other than above (iv) Other financial assets d) Current Tax Assets (Net) e) Other Current Assets GRAND TOTAL – ASSETS
FY18 3,540 3,119 295
29 35 10 48 4
2,278 526
295
1,179 13
64
23 21 157 5,818
FY19 4,505 3,827 561
H1-FY20 5012 3624 1301
31 17 10 59 -
2,099 599
303
1,057 5
35
26 - 74 6,604
31 18 10 29 -
2890 586
329
1762 10
35
52 - 115 7902
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Financial Highlights
Operational Revenue (INR Mn)
7,384
6,421
5,708
3,931
4,336
EBITDA (INR Mn) & EBITDA Margin (%)
PAT (INR Mn) & PAT Margin (%)
10.70% 11.89%
22.22%
18.97%
16.37%
15.93%
12.34%
643
535
909
1,218
1,641
7.98%
3.02%
131
455
687
878
1.99% 78
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
ROE (%) and ROCE (%)
29%
31%
29%
26%
26%
21%
9%
6% FY15
12%
12%
FY16
Debt to Equity 1.67
1.76
1.00
Net Worth (INR Mn)
3,076
2,226
1,583
0.68
0.50
913
1,130
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
ROE (%)
ROCE (%)
Note: FY17, FY18 and FY19 numbers are as per IND-AS
13
Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Satia Industries Limited (“Company” or “SIL” or “Satia Industries Ltd.”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
For further information please contact our Investor Relations Representatives: Mr. Inderjeet Monga AGM – Accounts and Finance Tel: +91 9855716521 Email: agm.finance@satiagroup.com
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~SATIA
I~z:!l"~ 508001
INDUSTRIES LIMITED 1100' cOO.PANV
14olO"0HSIIS
Thank You
15