Savita Oil Technologies Ltd posts consolidated PAT of Rs. 67.4 crores in Q3 FY2024

Savita Oil Technologies Limited, a leading manufacturer of petroleum specialty products, announced its unaudited financial results for the quarter and nine months ended December 31st, 2023.

Steady Growth in Total Income:

Savita Oil Technologies reported a total income of Rs. 981.8 crores for the third quarter of FY24, marking a significant increase of 6.7% compared to the same period last year. This growth trajectory underscores the company's ability to adapt to changing market dynamics and capitalize on emerging opportunities within the specialty oils and lubricants segment.

Surge in EBITDA:

One of the most notable highlights of Savita Oil Technologies' financial performance is the remarkable surge in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company reported an EBITDA of Rs. 109.0 crores for Q3 FY24, representing a staggering growth of 105.5% year-on-year. This substantial improvement in EBITDA reflects the company's operational efficiency, cost management strategies, and prudent financial management practices.

Strong Profit After Tax Margin:

Savita Oil Technologies also witnessed a significant increase in its Profit After Tax (PAT) margin, reaching 6.9% for the third quarter of FY24 compared to 3.1% in the same period last year. This noteworthy expansion in PAT margin underscores the company's ability to generate higher profits while effectively managing its expenses and optimizing its resources.

Key Highlights

- EBITDA per KL/MT stood at Rs.8,809 for Q3FY24 and at Rs.6,895 for 9MFY24

- Savita GreenTec Limited (a subsidiary of Savita Oil Technologies Limited) is expected to commence construction of Greenfield Projects in plastic recycling in the coming quarter.

Commenting on the performance Mr. Gautam N. Mehra, Chairman and MD, said - "Total revenues registered a YoY increase in the Q3 & 9M FY'24 by 7% and 5%, respectively. Profit after Tax (PAT) for the Q3 FY'24 is Rs.67.4 crore as against Rs.28.7 crore of Q3 FY'23 and YTD Dec'23 is Rs.170 crore as against Rs.189.3 crore in previous year. This growth was largely driven by an improved product mix. Despite some headwinds, the company reported an improved performance, which can be attributed in part to a price increase on select finished goods that was implemented in the previous quarter amid the rising crude price trend during that period. Overall EBITDA for the quarter has improved as compared to previous year same quarter.

We have a large number of SKUs spanning product categories that service a wide range of applications, and our business mix and performance vary each quarter. Transformer oil and Lubricant division has grown steadily this year, while White oil has seen some headwinds. Lubricant division will grow at a healthy pace as we introduce a number of new high-performance fluids in our product range in the coming quarters."

Source : Equity Bulls

Keywords

SavitaOilTechnologies Q3FY24 9MFY24 ResultUpdate