Satia Industries Ltd · NSE:SATIA
Satia Industries — Investor Presentation (August 2020)
39 slides from Satia Industries's investor presentation, August 2020
Slide 1: Satia Industries Limited Investor Presentation August 2020
SATIA INDUSTRIES LIMITED INVESTOR PRESENTATION August 2020 ~SATIA INDUSTRIES LIMITED ~AN S09Ol), '''''&OHSAS'400'COMPANY 1
Slide 2: Executive Summary
Executive Summary Company Overview Key Clientele • Incorporated in 1980, Satia • SIL has long standing Industries Limited (SIL), is one of relationship with State the biggest and completely Text book Corporations integrated Wood and Agro and around 40% of based paper manufacturers. revenue comes fro
Slide 3: Company Overview
~SATIA INDUSTRIES LIMITED ~A.' 1$08001 14olO"OHSAS 1Il001 COt-IPANY Company Overview 3
Slide 4: About The Company
About The Company Operational Revenue (INR Mn) & EBITDA Margin (%) 7,384 8,086 6,421 5,708 4,336 22% 22% 19% • Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its commercial 16% 12% production of printing and writing paper at Muktsar, Punjab in 1984. • SIL is one of th
Slide 5: 3M / Q1-FY21 Financial Overview
3M / Q1-FY21 Financial Overview ~SATIA INDUSTRIES LIMITED ~AN S09Ol), '''''&OHSAS'400'COMPANY 5
Slide 6: Results for Q1-FY21
Results for Q1-FY21 Q1-FY21 Financial Highlights Operational Revenue (INR Million) 1,251* EBITDA 278* EBITDA Margin 22.24% Net Profit 116* PAT Margin 9.27% EPS (INR per Share) 1.16 * Figures expressed in INR Millions 6
Slide 7: Operational Highlights for Q1-FY21
Operational Highlights for Q1-FY21 • Company proved its strength and agility despite the extraordinary adverse circumstances and headwinds arising on account of COVID 19 and a complete shutdown of over a month by the Govt, labor problem and slack demand. • The operational resiliency was demonstrated
Slide 8: Key Management Personnel
Key Management Personnel R.K. Bhandari (MBA) - Joint Managing Director : An Industry Veteran by himself, he looks after marketing and administrative responsibilities since the last 32 years. His excellent leadership qualities has enabled the Company to grow at an immense pace thus enabling it to be
Slide 9: Key Milestones
Key Milestones Started production using Production Power Increased Additional Power generation Achieved a a single paper machine crossed cogeneratio capacity of the capacity of 10.45 MW and significant with the capacity of 10,000 n plant power plant to New Solar plant with production 4,950 MTPA MTPA
Slide 10: Geographical Presence
Geographical Presence Region-wise sales for FY20 Region-wise sales for FY20 Jammu & Kashmir Delhi 0.83% 10.07% Punjab Uttar Pradesh 8.93% 12.29% Haryana Assam 3.5% 10.9% Rajasthan West Bengal 9.57% 4.17% Gujarat Bihar 3.28% 1.46% Maharashtra Madhya Pradesh 13% 3.9% Telangana Distributors (70) Chhatt
Slide 11: Manufacturing Facilities
Manufacturing Facilities Segment Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Description • Continuous Digester for • Capacity of paper machines • Installed two Chemical • Installed three turbine cooking pulp, oxygen varies with operating speed Recovery boilers with a c
Slide 12: Capex Plan
Capex Plan Agro – Residue Updates: • Most of the parts of the New European Paper Manufacturing Machine has reached the site. Wood chips • The development of the New Block is almost complete. Capacity • Final Environmental Clearance Current Capacity Capex of Expansion of already received from the Was
Slide 13: Paper Cutlery Segment
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
Slide 14: Paper Making Process
Paper Making Process Stage 1 Continuous Cooking Cooked Elemental Pulp & Unbleached Stage 2 with caustic Black Chlorine Cleaned Pulp Agro soda which Liquor Free Stock Preparation Wet Raw Washing, Brown passes Bleaching Stage 3 Residue Washing Material through (Sodium Refining, Pulp (Environ- Lignate)
Slide 15: Effluent Treatment
Effluent Treatment Recovery Boiler Calcium Carbonate Organic matter burns and Inorganic matter (Limestone) acts as fuel Treated with Sold in markets Black Liquor becomes Calcium (Sodium Sodium Carbonate Hydroxide Sodium Hydroxide (Caustic Soda) Lignate) Reused after 90 -95% recovery rate Wheat straw
Slide 16: Top Clients
Top Clients Assam State Text Book Production & Bal Bharti Odisha State Bureau of Textbook Publication Corporation Ltd. BurdaDruck Burda Druck India Privato Limited Chhattisgarh Pathya Pustak Nigam Rajasthan Rajya Pathyapustak Mandal Burda Druck India Private Limited . . • .. West Bengal Text Book Co
Slide 17: Myths Vs Realities of the Paper Industry
Myths Vs Realities of the Paper Industry Myth Reality Paper industry in India is also agro and rural based. Industry led agro/farm forestry in collaboration Denuding forests with farmers have brought over 125,000 hectares under pulp wood plantations. It is wood positive. The industry grows more tree
Slide 18: Certifications
Certifications Certificate of Certificate of Certificate of r...,;,-"q: ... rq..., R egistra tion .....,;J....f.'{... rq..., R egistration .., R egistra tion r...,r'-f.q: ... rq..., This is to certify that This is 10 ccrtifythat This is to crrtify that Satia Industries Ltd. Satia Industries Ltd. Sat
Slide 19: Key Strengths
Key Strengths $ Wheat Straw is cheap and easily available locally Low cost raw materials 27.95 MW capacity run on Biomass and process intermediate- Black Liquor Co-power generation to reduce cost No other paper mill in a 100 Km radius Secure access to raw materials 3 Branch Offices and 70 Distributo
Slide 20: Business Overview
~SATIA INDUSTRIES LIMITED ~A.' 1$08001 14olO"OHSAS 1Il001 COt-IPANY Business Overview 20
Slide 21: Writing and Printing paper: Products
Writing and Printing paper : Products Snow White Super Snow White Ultra White Ultra Shine Ultra Print Features: Features: Features: Features: Features: Brightness: 85% Brightness: 89% Brightness: 85% Brightness: 88% Brightness: 90% Whiteness: 133% Whiteness: 142% Whiteness:133 % Whiteness: 142 % Whi
Slide 22: Writing and Printing paper: Products
Writing and Printing paper : Products Coloured Paper Cover Paper Natural Shade \1 Photo Copier Ledger Features: Features: Features: Features: Features: Brightness- NA Brightness- 85% Brightness- 82% Brightness- 90% Brightness- 58% Whiteness- NA Whiteness- 133% Whiteness- 70% Whiteness- 142% Whitenes
Slide 23: Operating Efficiency
Operating Efficiency 2,50,000 Production, Revenue and Profit Trend 2,12,858 2,29,321 9,000 2,06,400 8,086 8,000 1,94,204 2,00,000 7,384 7,000 1,60,631 1,43,440 1,44,429 6,421 6,000 1,50,000 5,708 5,000 3,978 4,336 4,000 1,00,000 3,931 3,000 50,000 2,000 1,578 1,699 1,284 1,000 875 372 531 449 - - FY
Slide 24: Strategic Advantage
Strategic Advantage • SIL has the capability and flexibility to use all three kinds of pulp made from agro residue, wood and waste paper. Raw • It procures raw materials like wheat straw, sarkanda and wood chips from the area adjacent to Material Security the manufacturing plant in Punjab. • No othe
Slide 25: Future Growth Strategy
Future Growth Strategy With a strong raw material base, doubled production capacity to over 2.0 lac tons paper every year, a flexibility to make high grade surface sized maplitho, 03 a copier paper along with our traditional stronghold in Government textbook paper market, we plan to expand our custo
Slide 26: Environmental Compliance
Environmental Compliance Environment Compliance though a legal necessity; SIL considers this as its moral responsibility and has undertaken many steps to ensure that no harm is done to the environment: • Eucalyptus Plantation : SIL uses the natural quality of Eucalyptus Plant for natural pumping and
Slide 27: Karnal Technology
Karnal Technology Process Low Cost • The expenditure of adopting this technology involves • The Karnal Technology involves growing cost of making ridges, plantation and their care. trees on ridges 1m wide and 50cm high • The implementation does not involve skilled labour wand disposing of the untrea
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility 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. • Total amount spent in FY20: INR 10.8 Mn • Total amount spent during FY19: INR 11.2 Mn
Slide 29: Industry Overview
~SATIA INDUSTRIES LIMITED ~A.' 1$08001 14olO"OHSAS 1Il001 COt-IPANY Industry Overview 29
Slide 30: Paper Industry Overview
Paper Industry Overview • The Indian paper & paper products market is projected to grow from $ 8.6 billion in 2018 to $ 13.4 billion by 2024, exhibiting a CAGR of 7.8% during 2019-2024. It is also poised to grow and touch 25 million tons in 2019-20 from 20.37 million tons in 2017-18. • According to
Slide 31: Paper Industry Overview
Paper Industry Overview • India is the fastest growing major paper market in the world. Pape.· and Pape.·boa.-d P.·oduction-Global lVla.·ket 600 • The demand drivers and growth triggers have come from a 500 490E combination of factors such as rising income levels, growing per 400 362 369 383 393 391
Slide 32: Challenges of Environmental Compliance
Challenges of Environmental Compliance • The pulp and paper industry is among the world’s largest generators of air and water pollutants, waste products and gases that cause climate change. Thus, heavy investment is required by companies to be environmentally compliant. Multiple norms have been intr
Slide 33: Indian Paper Industry is Ripe for Consolidation
Indian Paper Industry is Ripe for Consolidation High Capital Intensity - Investment in land and machinery, repairs and maintenance of mills, technology, cost of environmental compliance, growing wood plantations and establishing a distribution network all make manufacturing paper a capital intensive
Slide 34: Financial Overview
~SATIA INDUSTRIES LIMITED ~A.' 1$08001 14olO"OHSAS 1Il001 COt-IPANY Financial Overview 34
Slide 35: Income Statement
Income Statement PARTICULARS (INR Mn) FY16 FY17* FY18* FY19* FY20* Q1 FY21 Operational Revenue 4,336 5,708 6,421 7,384 8,086 1,251 Total Expenses 3,801 4,799 5,203 5,743 6,337 973 EBITDA 535 909 1,218 1,641 1,749 278 EBITDA Margin 12.34% 15.93% 18.97% 22.22% 21.63% 22.24% Other Income 165 211 303 14
Slide 36: Balance Sheet (IND-AS)
Balance Sheet (IND-AS) PARTICULARS (INR Mn) FY18 FY19 FY20 PARTICULARS (INR Mn) FY18 FY19 FY20 Equity 2,226 3,076 3,955 Non-Current Assets 3,540 4,505 5,983 Equity Share Capital 100 100 100 a) Property, Plant and Equipment 3,119 3,827 3,709 Other Equity 2,126 2,976 3,855 b) Capital Work In Progress
Slide 37: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 11.89% 11.36% 10.70% 7,384 8,086 22.22% 21.63% 7.98% 6,421 5,708 18.97% 4,336 15.93% 12.34% 3.02% 535 909 1,218 1,641 1,749 131 455 687 878 918 FY16 FY17 FY18 FY19 FY 20 FY16 FY17 FY18
Slide 38: Disclaimer
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 d
Slide 39: Thank You
~SATIA INDUSTRIES LIMITED ~A.' 1$08001 14olO"OHSAS 1Il001 COt-IPANY Thank You 39
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