Satia Industries Ltd · NSE:SATIA
Satia Industries — Q4 FY2021 Earnings Presentation
40 slides from Satia Industries's earnings presentation, Jun 24, 2021
Slide 1: Exchange filing cover letter for Investor Presentation Q4 & FY21
An ISO 9001, 14001 & OHSAS 18001 company Manufacturer of Quality ,. jc: A " Writing, Printing & Speciality am ae Paper with ECO man el = N LJ LIMITED CIN: - L21012PB1980PLC004329 .SIL/CS Date: 24.06.2021 The Manager, The Manager Listing Department, Listing Department BSE Limited, National Stock Exch
Slide 2: Investor Presentation June 2021
June 2021 Investor Presentation Satia Industries Limited
Slide 3: Safe Harbor
Safe Harbor Certain statements in this document may be forward looking statements. Such forward looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual
Slide 4: In-line with Government Initiatives
In-line with Government Initiatives…… In-line with the govt. initiative to eliminate all single-use plastic products by integrating the use of paper packaging in the country by 2022 Excellent effluent treatment, Eucalyptus plantations and zero water discharge into any water body makes SIL’s manufact
Slide 5: Chairman's Message
Chairman’s Message “Once you start building a business, it is like planting a tree; you feed it and work on it daily, so you grow to love it. This is like my first child – I like to call it that” Dr. Ajay Satia – Chairman and Managing Director 03
Slide 6: Chairman's Message (Contd.)
Chairman’s Message (Contd.) Dr. Ajay’s entry into business fired a passion that burns just as economy was already experiencing a growth slowdown, as SIL has been continuously working on enriching its product brightly today as it did all those years ago. He loves the business, reflected in lower disc
Slide 7: Message from Joint Managing Director Mr. R. K. Bhandari
Message from Joint Managing Director Mr. R. K. Bhandari “We operate in a non-cyclical industry mills have set up R&D centres to develop “SIL is demystifying the myths which produces a truly sustainable high-yielding, drought-tolerant and relating to the paper industry product. Paper is based on wood
Slide 8: Overview – Satia Industries Limited
Overview – Satia Industries Limited Satia Industries Limited (SIL), is one of the largest Wood and Agro-based paper manufacturers in India. SIL was incorporated by Dr. Ajay Satia in 1980 and commenced its operations in 1984 with a small capacity of 4,850 ton per year. 1 2 3 4 5 6 SIL has total capac
Slide 9: Our Ethos – Vision and Mission
Our Ethos – Vision and Mission Vision Mission ‘To become a leader in its own segment with ‘To sustain growth with technological excellence in all-round performance creating upgradation and innovation on a continuous value for all stakeholders of the company, basis for achieving cost competitiveness
Slide 10: Visionary Team – Our KMP's
Visionary Team – Our KMP’s Dr. Ajay Satia Mr. R. K. Bhandari Mr. Chirag Satia Chairman & MD Joint Managing Director Executive Director Dr. Satia is an MBBS, he has been the pioneer for setting Mr. Bhandari is an MBA, he has been instrumental in He has been driving force behind new initiatives since
Slide 11: The Journey & Key Milestones
The Journey & Key Milestones Incorporation Started production Second Production Paper Power co generation A. CRP/ 5andpower plant of Satia With Paper Paper Crossed Machine-3 plant (5 MW) 5MW TG Installed. Industries Machine-1; Machine-2 10,000 and 80 Installed/ B. 220 MT agro Limited capacity 4,950
Slide 12: SIL's Strategic and Sustainable Revenue Model
SIL’s Strategic and Sustainable Revenue Model Supplies to State boards: Open market supplies: ~40-50% of Revenues ~50-60% of Revenues • SIL supplies high quality watermark paper to various • SIL supplies to retail traders through its strong Pan-India state text-book boards distribution network of 70
Slide 13: SIL's Strategic and Sustainable Revenue Model (Contd.)
SIL’s Strategic and Sustainable Revenue Model (Contd.) New addition in the Revenue stream Paper Cups & Cutlery: SIL has introduced a new With aggressive SIL is also exploring product line of Virgin efforts, SIL has made a opportunities in based fibre cups. This strong foothold in manufacturing speci
Slide 14: SIL's Competitive Strength
SIL’s Competitive Strength Raw Material: • SIL has developed inbuilt flexibility and sufficient capacity to make pulp using all three types of raw materials; • Agricultural Residues (Wheat Straw and Sarkanda) • Wood chips/veneer waste • Waste paper and pulp substitutes • The plant facility is locate
Slide 15: SIL's Competitive Strength (Contd.)
SIL’s Competitive Strength (Contd.) Chemical Recovery Facility Benefits: by-products help save major costs • Reuse of recovered caustic soda to the tune of over • Use of caustic soda is ~16% and ~27% in cooking agro ` 800-900 mn p.a., thereby bringing down the cost that and wood chips respectively a
Slide 16: SIL's Competitive Strength (Contd.)
SIL’s Competitive Strength (Contd.) Power Generation Benefits: cost saving and income generation • Total power requirement for current operations is 20-21 MWs • Significant reduction in fuel costs: SIL’s power unit costs i.e. approx. 5,00,000 units per day. around ` 2 per unit. Whereas, withdrawing
Slide 17: SIL's Competitive Strength (Contd.)
SIL’s Competitive Strength (Contd.) Effluent Discharge Handling Water • SIL has planted Eucalyptus trees in over 540 acres (leased • SIL has approval from the Punjab State Irrigation and partly-owned). Department for fresh Canal water withdrawal of • This plantation gives multi-fold benefits as it n
Slide 18: Strong Dealers & Distributors Network
Strong Dealers & Distributors Network SIL has Pan India presence with 3 branch offices and a network of 70+ distributors. SIL also has a dedicated customer base due to long standing relationships with State Text-Book Boards across India. Region-wise sales for FY21 Region-wise sales for FY21 Jammu &
Slide 19: Marquee Clients with long-standing Relationship
Marquee Clients with long-standing Relationship Bal Bharti Assam State Text Book Production & Odisha State Bureau of Textbook Chhatttisgarh Pathya Pustak Nigam Rajasthan Rajya Pathyapustak Mandal Publication Corporation Ltd Burda Druck India Private Limited West Bengal Text Book Corporation Ltd Hima
Slide 20: SIL's Manufacturing Strength
SIL’s Manufacturing Strength Earlier Current After Brownfield expansion (on-going) Manufacturing Capacity: To aid volume expansion 1st Machine 15 TPD 100 TPD 100 TPD SIL currently has 3 machines with a total installed capacity of 1,05,000 MTPA. This is expected to double (2,00,000 TPA) by Q3 of FY22
Slide 21: Growth Strategy - CAPEX Plan
Growth Strategy - CAPEX Plan Plant to be commissioned by Q3 of FY22 Agro–Residue Wood chips Current capacity 200 MT per Current capacity of 150 MT day will be expanded to 250 per day will be expanded to MT per day 300 MT per day Waste Paper CRP In-house power generation Current capacity of 100 MT pe
Slide 22: Recent Development - Update on CAPEX plan
Recent Develpment - Update on CAPEX plan 1 3 5 The erection work of 4th Civil work of wood pulping SIL has installed two Table paper machine is almost plant is almost 85% complete, cutlery machines with an 80% complete, and balance and it is expected to commence annual capacity of plus 2,400 despatc
Slide 23: Updates on the Paper Cups & Cutlery Segment
Updates on the Paper Cups & Cutlery Segment SIL has entered into agreement with a SIL has installed two Table cutlery US-based global brand Zume, interested machines with an annual capacity of in sourcing of packaging products and plus 2,400 MTPA. The erection and is ready to share its patented prod
Slide 24: Offering wide range of products Product Portfolio
Offering wide range Product Portfolio of products SIL started with a single paper The products include: Super machine in the year 1984 and Snow White paper, Snow has over the years expanded White paper, Maplitho paper, its capacity to 1,05,000 MTPA Coloured paper, Ledger paper, Snow White Super Snow
Slide 25: Industry Dynamics – Overview of Indian Paper & Pulp Industry
Industry Dynamics – Overview of Indian Paper & Pulp Industry ‘Paper consumption is poised for a big leap forward in sync with the economic growth’ 1 2 3 4 5 6 India ranks as the 5th The size of the Indian The industry provides Futuristic view for paper The increasing demand The Indian paper largest
Slide 26: Indian Government aims to reduce Paper Import dependency
Indian Government aims to reduce Paper Import dependency…….. Rising Bill: In Dollar Terms India’s imports of paper & paperboard (excluding newsprint) India imported paper and paperboard (excluding (DGCL & S) newsprint) to the tune of ` 5,000 crore during the China ASAN S Korea 350 (figures in bracke
Slide 27: Key factors that are driving the growth of Indian Paper Industry
Key factors that are driving the growth of Indian Paper Industry Underpenetrated or Increasing no. of Schools, Growing Online Food Delivery National Education Policy (NEP) underdeveloped market Colleges and Literacy rate in India & E-Commerce business in India to boost the demand for text-book paper
Slide 28: Financial Statement Highlights for Q4 of FY2021 v/s Q3 of FY2021
Financial Statement Highlights for Q4 of FY2021 v/s Q3 of FY2021 Particulars (INR MN) Q4 FY 21 Q3 FY 21 Q4 FY20 Financial Performance Comparison - Q4 FY21 v/s Q3 FY21 Revenue from Operations 1,727.97 1,426.02 1,790.58 Other Income 35.83 2.01 11.91 EBITDA margins have increased Total Revenue 1,763.80
Slide 29: Financial Snapshot
Financial Snapshot Total Revenue (` in mn) EBITDA Margins (%) EPS (in `) ROE (%) ROCE* (%) 1000 25 10 35 30 23.7 23.1 23.13 30 22.6 9.18 25 30.8 8.78 26.5 800 20 8 26.0 823.83 28.6 25 752.85 26.12 20 672.33 600 15 6 19.80 20 595.16 15 4.95 15 400 10 4 10 10 11.79 9.70 200 5 2 5 5 0 0 0 0 0 FY18 FY19
Slide 30: Abridge Financial Highlights
Abridge Financial Highlights Profit & Loss Statement Particulars (` MN) FY21 FY20 Revenue from Operations 5884.40 8086.37 Other Income 67.16 151.98 Total Revenue 5951.56 8238.35 Total Expenses 5283.20 7085.55 EBITDA 1361.18 1749.18 EBITDA Margin (%) 23.13% 21.63% Depreciation & Amortization Expenses
Slide 31: Abridge Financial Highlights (Contd.)
Abridge Financial Highlights (Contd.) Consolidated Balance sheet Assets (` MN) FY21 FY20 Fixed Assets Tangible Assets 4,315.91 3,709.09 Capital Work in Progress 3,178.05 2,147.40 Total Fixed Assets 7,493.95 5,856.49 Non Current Investment & Other Financial Asset 48.59 42.97 Loans - - Deferred Tax &
Slide 32: Abridge Financial Highlights (Contd.)
Abridge Financial Highlights (Contd.) Consolidated Balance sheet Liabilities (` MN) FY21 FY20 Shareholders Fund Share Capital 100.00 100.00 Reserve and Surplus 4,353.45 3,854.81 Total Shareholders Fund 4,453.45 3,954.81 Non-Current Liabilities Long term Borrowing 2,279.06 1,587.67 Other Financial Li
Slide 33: Financial Comparison Summary of FY21 v/s FY20
Financial Comparison Summary of FY21 v/s FY20 Income from operation recorded a Average realizations for the year The EBITDA decreased by 22.18% Net profit stood at ` 495.49 mn in decline by 27.23% from ` 8,086.37 stood at ` 49,282 per tonne as from ` 1,749.18 mn in FY20 to FY21, compared to ` 918.38
Slide 34: Growth Outlook
Growth Outlook Capex – To double the capacity Increased exports – Tapping new The increase in Market Share is and move up the value chain geographies would absorb the expected with the State Boards The incremental capacity comes increased production Currently SIL commands equipped with a technology
Slide 35: Growth Outlook (Contd.)
Growth Outlook (Contd.) NEP to boost the demand for Change in product mix would Limited Covid -19 impact text-book paper stoke margins SIL claims limited net business impact The Union Cabinet approved a new Upon commencement of the new on account of CoVID-19, SIL losing only National Education Polic
Slide 36: Forward Guidance
Forward Guidance SIL is in process of commencing its planned capex of SIL expects an demand of 10 tons per day and it has installed capacity of 2,400 MTPA for paper cutlery segment, ` 5,000 mn which is halfway done as `3,250 mn has been spent and trial production is expected to at an avearge net rea
Slide 37: CSR Initiatives
CSR Initiatives SIL believes that the corporate sector are economic organs of the society and therefore endeavors to make a positive difference to the society by trying to build a better tomorrow. ` 10.8 million ` 11.2 million ` 12.2 Million Total amount spent on CSR Total amount spent on CSR Total
Slide 38: Capital Market Indicators
Capital Market Indicators Shareholding as on 31st March 2021 Market Indicators: Particulars No. of Shareholders Shareholding as a % of Listed on BSE/NSE Total Shares held Issued Shares 10,00,00,000 Promoters & Promoters group 7 51.79% Share Price (31-03-2021) 81.40 Public 4,185 48.21% Market Capital
Slide 39: Awards and Recognitions
Awards and Recognitions Certificate of % Registration Satia Industries Ltd. ISO 9001 : 2015 ‘Quality Management System Certificate of egistration Satia Industries Ltd. ISO 14001 : 2015 Environmental Management System Certificate of Registration Industries Ltd. OHSAS 18001:2007 ‘Occupational Health &
Slide 40: Thank you
Thank you Mr. Inderjeet Monga CFO, Satia Industries Ltd Email: indermonga.finance@satiagroup.com Contact: +91 98557 16521 Investor Relations Krunal Shah / Vinayak Shirodkar Captive IR Strategic Advisors (P) Ltd Email: krunal@cap-ir.com / vinayak@cap-ir.com Contact: +91 98922 88895