Satia Industries Reports Significant Q2 Revenue Decline and Net Loss
Satia Industries Limited experienced a significant downturn in Q2 financial performance. Revenue decreased by 8.5% to ₹3,111.26 crore, while EBITDA fell to ₹66.00 crore from ₹451.00 crore year-over-year. The company reported a net loss of ₹245.17 crore, contrasting with a profit of ₹123.31 crore in the previous year. The Paper segment saw an 8.82% revenue decline, while Co-Generation and Agriculture segments showed growth. Cash and cash equivalents decreased to ₹58.74 crore from ₹358.07 crore at the end of the previous fiscal year.
*this image is generated using AI for illustrative purposes only.
Satia Industries Limited , a key player in the paper and pulp industry, has reported a substantial decline in its financial performance for the second quarter. The company's results highlight the challenges faced in the current economic environment.
Revenue and Profitability
Satia Industries witnessed a notable decrease in its revenue for Q2, reporting ₹3,111.26 crore compared to ₹3,401.20 crore in the same quarter of the previous year. This represents a year-over-year decline of approximately 8.5%.
The company's profitability took a severe hit, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) plummeting to ₹66.00 crore from ₹451.00 crore in the corresponding quarter last year. This resulted in a significant contraction of the EBITDA margin from 13.25% to 2.11%.
Most notably, Satia Industries reported a net loss of ₹245.17 crore for the quarter, a stark contrast to the profit of ₹123.31 crore recorded in the same period last year.
Segment Performance
The company's financial results reveal varying performances across its business segments:
| Segment | Q2 Revenue (₹ crore) | Previous Q2 Revenue (₹ crore) | YoY Change |
|---|---|---|---|
| Paper | 3,099.58 | 3,399.50 | -8.82% |
| Co-Generation | 908.13 | 766.37 | +18.50% |
| Agriculture | 11.48 | 1.71 | +571.35% |
The Paper segment, which is the company's primary revenue generator, experienced a decline of 8.82% year-over-year. However, the Co-Generation division showed growth, and the Agriculture segment, although small, displayed significant expansion.
Balance Sheet Highlights
As of the end of the quarter, Satia Industries reported:
- Total assets of ₹1,50,518.10 crore
- Total equity of ₹1,05,315.33 crore
- Total liabilities of ₹45,202.77 crore
Cash Flow and Liquidity
The company's cash and cash equivalents stood at ₹58.74 crore at the end of the quarter, compared to ₹358.07 crore at the end of the previous fiscal year. This decrease in cash reserves may be attributed to various factors, including operational challenges and investment activities.
Outlook
While Satia Industries faces significant headwinds in its core paper business, the growth in its Co-Generation and Agriculture segments may provide some diversification benefits. The company's ability to navigate the current challenges and potentially return to profitability will likely depend on market conditions, operational efficiency improvements, and strategic decisions in the coming quarters.
Historical Stock Returns for Satia Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.75% | -6.33% | -10.70% | -7.49% | -26.59% | -26.75% |
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