Q3 2024 Satia Industries Ltd Earnings Call Transcript
Key Points
- Achieved a 17% sequential revenue growth, highlighting brand strength and operational capabilities.
- Gross margin improved to 55.2% during Q3 FY '24 compared to 52.9% in the same period last year.
- EBITDA margins remained healthy at 21.2% for the quarter and 25.4% for the six months of FY '24.
- Year-to-year PAT grew by 18% to INR1,717 million, with a 260 bps improvement in net profit margin.
- Successfully modernized all six digesters, completing the backward integration chain, expected to reduce steam consumption and increase wood pulping efficiency.
- Revenue declined by 10% year-on-year to INR4,357 million due to subdued demand, declining prices, and increased imports.
- The delay in the full implementation of the new education policy led to cautious inventory management by textbook vendors.
- The paper industry is under pressure from increased imports, with a 45% to 50% rise in overseas paper dumping.
- Current demand in the paper industry is dull, and prices are under pressure due to market conditions.
- Despite modernization efforts, the company is still facing challenges in achieving peak production levels for PM4.
On behalf of Satia Industries Limited, I welcome you to the Q3 and 9 months FY '24 Earnings Conference Call.
(Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Ms. Runjhun Jain from EY Investor Relations. Thank you, and over to you, ma'am.
Thank you, Manav. Good afternoon, everyone. We hope you would have got the chance to review the results, which are available on exchanges and on our company's website. To discuss the company's performance in the quarter gone by, we have with us Mr. R.K. Bhandari, Joint Managing Director; and Mr. Rachit Nagpal, Chief Financial Officer of the company.
Before we proceed with the call, a disclaimer, please do note that anything said on this call during the interaction and/or in our collaterals, which reflects the outlook towards the future, or which should be taken as a certain forward-looking statement must be viewed in condition with the risk the company faces and may not be updated from time to time. More details can be found on the
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