Savita Oil Technologies (SOTL) Q1 24/25 earnings summary

Executive summary

• Achieved Q1 FY25 total income of Rs.973 crore, up 4% year-over-year, with steady sales volumes and double-digit QoQ growth in Transformer and Lubricating Oil divisions.

• Approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024, with statutory auditor review confirming compliance and no material misstatements.

• Profitability impacted by higher freight costs, international market challenges, and increased brand investments.

• Positive market response to new ester-based lubricant series, with continued investment in product and brand development.

• Board approved buyback of up to 540,000 shares at Rs.675 per share, totaling up to Rs.44.94 crore, with record date set for 16 August 2024.

Financial highlights

• Q1 FY25 consolidated revenue at Rs.973 crore (₹95,549.55 lakh), up 3.7% YoY; EBITDA at Rs.64.2 crore, down 25.4% YoY; PAT at Rs.39.8 crore, down 28.4% YoY.

• Standalone net profit for Q1 FY25 was ₹4,229.74 lakh, up from ₹3,273.68 lakh in Q1 FY24 but down from ₹5,564.17 lakh in Q4 FY24.

• EBITDA margin at 6.6% (vs. 9.2% Q1 FY24); PAT margin at 4.1% (vs. 5.9% Q1 FY24).

• FY24 consolidated revenue at Rs.3,812 crore, EBITDA at Rs.325 crore (8.5% margin), PAT at Rs.201 crore (5.3% margin).

• Paid-up equity share capital stood at ₹1,382.01 lakh.

Outlook and guidance

• Focus on expanding industrial distribution, innovation in sustainable products, and capacity expansion.

• Continued investment in premium and mid-premium product categories and brand building.

• Board has constituted a Buyback Committee and appointed a merchant banker to manage the buyback process.