Paper & Paper Products company Satia Industries announced Q1FY24 results:
- Revenue from operations increased by 15% on YoY from Rs 4,170 million in Q1FY23 to Rs 4,812 million in Q1FY24, led by higher sales realization.
- During Q1FY24, our gross profit margins have improved to 59.1% from 47.7% in Q1FY23 and remain steady on sequential basis. It was 59.6% in Q4FY23.
- The EBITDA increased by 114% on YoY basis to Rs 1,493 million in Q1FY24 from Rs 699 million in Q1FY23 led by higher realizations and lower cost of materials consumed. EBITDA margin improved for the fourth consecutive quarter to 31.0% in Q1FY24.
- Net profit stood at Rs 841 million in Q1FY24, compared to Rs 302 million in Q1FY23, a growth of 178% YoY.
- EPS for Q1FY24 was Rs 8.4 as compared to Rs 3.0 in Q1FY23.
- During Q1FY24, the company has prepaid term loans of Rs 342.7 million.
Commenting on the financial results, Executive Director Chirag Satia, said, “We are thrilled to unveil our company's exceptional performance in the face of a challenging external landscape. Despite these challenges, our dedication and strategic approach have yielded remarkable results. The Revenue from Operations has increased by 15% yoy in Q1FY24.
Notably, our EBITDA also achieved significant progress as well, and increased by 114% YoY to reach Rs 1,493 million. This impressive growth can be attributed to a combination of factors, including a robust upswing in volume and the favourable effects of improved economies of scale. As a result, our EBITDA margins have soared to 31.0% during this quarter, representing the highest margin achievement in our company's history.
These remarkable results are a direct outcome of our commitment to streamlining operations, optimizing resource allocation, and enhancing overall operational efficiency. These efforts have had a direct impact on our improved EBITDA margins, further reinforcing our ability to navigate challenges effectively.
Looking ahead, we maintain a positive outlook for the coming year, as we expect to witness sustained healthy volume growth. Our strong partnerships with state boards, coupled with a promising demand outlook for the Printing & Writing Papers segment, provide a solid foundation for this anticipated growth trajectory.
Furthermore, our company's commanding position in the state's textbook segment translates into substantial revenue visibility for the medium term. This robust order book underscores our stability and positions us favourably to capitalize on market opportunities.”