Capitaline

Results 15-Feb-22

Analysis

Savita Oil Technologies

Healthy revenue growth but weak margins

Savita Oil Technologies standalone net sales increased 38.03% to Rs 738.36 crore. Sales of Petroleum Products segment has gone up 39.27% to Rs 740.25 crore (accounting for 99.48% of total sales). Sales of Wind Power segment has gone down 30.15% to Rs 3.89 crore (accounting for 0.52% of total sales).

Operating profit margin has declined from 19.59% to 9.74%, leading to 31.33% decline in operating profit to Rs 71.95 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 65.37% to 79.02%. Purchase of finished goods cost rose from 0.84% to 1.14%. Employee cost decreased from 2.95% to 2.03%. Other expenses fell from 11.08% to 8.02%.

Other income fell 22.74% to Rs 9.04 crore. PBIDT fell 30.47% to Rs 80.99 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 25.90% to Rs 80.12 crore. PBIT of Petroleum Products segment fell 27.14% to Rs 81.08 crore (accounting for 101.21% of total PBIT). PBIT of Wind Power segment rose 69.53% to Rs -0.97 crore (accounting for -1.21% of total PBIT).

PBIT margin of Petroleum Products segment fell from 20.94% to 10.95%. PBIT margin of Wind Power segment rose from negative 56.88% to negative 24.81%. Overall PBIT margin fell from 20.13% to 10.77%.

Provision for interest up 66.37% to Rs 3.76 crore. PBDT fell 32.38% to Rs 77.23 crore. Provision for depreciation rose 1.99% to Rs 5.13 crore.

Profit before tax down 33.97% to Rs 72.10 crore. Provision for tax was expense of Rs 15.57 crore, compared to Rs 28.09 crore. Effective tax rate was 21.60% compared to 25.73%. Profit after tax fell 30.30% to Rs 56.53 crore.

Promoters’ stake was 71.81% as of 31 December 2021 compared to 71.75% as of 31 December 2020.

For year-to-date (YTD) results analysis

Net sales of Savita Oil Technologies have increased 59% to Rs 2,034.03 crore. Sales of Petroleum Products segment has gone up 59.68% to Rs 2,015.49 crore (accounting for 98.63% of total sales). Sales of Wind Power segment has gone up 1.37% to Rs 28.01 crore (accounting for 1.37% of total sales).

Operating profit margin has declined from 13.07% to 12.64%, leading to 53.70% rise in operating profit to Rs 257.08 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 68.32% to 77.05%. Purchase of finished goods cost fell from 2.91% to 0.52%. Employee cost decreased from 3.57% to 2.40%. Other expenses fell from 12.00% to 7.47%.

Other income fell 13.90% to Rs 24.15 crore. PBIDT rose 43.99% to Rs 281.23 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 49.49% to Rs 267.46 crore. PBIT of Petroleum Products segment rose 48.92% to Rs 254.60 crore (accounting for 95.19% of total PBIT). PBIT of Wind Power segment rose 61.81% to Rs 12.86 crore (accounting for 4.81% of total PBIT).

PBIT margin of Petroleum Products segment fell from 13.54% to 12.63%. PBIT margin of Wind Power segment rose from 28.76% to 45.91%. Overall PBIT margin fell from 13.87% to 13.09%.

Provision for interest up 117.60% to Rs 12.86 crore. PBDT rose 41.69% to Rs 268.37 crore. Provision for depreciation rose 1.01% to Rs 14.97 crore.

Profit before tax grew 45.15% to Rs 253.40 crore. Provision for tax was expense of Rs 63.25 crore, compared to Rs 45.16 crore. Effective tax rate was 24.96% compared to 25.87%. Profit after tax rose 46.92% to Rs 190.15 crore.

Promoters’ stake was 71.81% as of 31 December 2021 compared to 71.75% as of 31 December 2020.

Full year results analysis

Net sales of Savita Oil Technologies have declined 6.54% to Rs 1,912.32 crore. Sales of Petroleum Products segment has gone down 6.01% to Rs 1,891.70 crore (accounting for 98.28% of total sales). Sales of Wind Power segment has gone down 16.54% to Rs 33.03 crore (accounting for 1.72% of total sales).

Operating profit margin has jumped from 7.59% to 15.71%, leading to 93.36% rise in operating profit to Rs 300.39 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 75.15% to 68.32%. Purchase of finished goods cost rose from 1.69% to 2.15%. Employee cost increased from 2.79% to 3.23%. Other expenses fell from 12.73% to 10.68%.

Other income up 174.07% to Rs 31.82 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 100.45% to Rs 317.19 crore. PBIT of Petroleum Products segment rose 124.37% to Rs 311.45 crore (accounting for 98.19% of total PBIT). PBIT of Wind Power segment fell 70.47% to Rs 5.74 crore (accounting for 1.81% of total PBIT).

PBIT margin of Petroleum Products segment rose from 6.90% to 16.46%. PBIT margin of Wind Power segment fell from 49.10% to 17.37%. Overall PBIT margin rose from 7.71% to 16.48%.

Provision for interest fell 55.38% to Rs 8.92 crore. Loan funds declined from Rs 0.41 crore as of 31 March 2020 to Rs 0.10 crore as of 31 March 2021. Inventories rose to Rs 590.94 crore as of 31 March 2021 from Rs 448.76 crore as of 31 March 2020. Sundry debtors were higher at Rs 545.05 crore as of 31 March 2021 compared to Rs 509.33 crore as of 31 March 2020. Cash and bank balance rose to Rs 56.91 crore as of 31 March 2021 from Rs 27.26 crore as of 31 March 2020. Investments rose to Rs 271.08 crore as of 31 March 2021 from Rs 176.92 crore as of 31 March 2020.

Provision for depreciation down 9.14% to Rs 20.19 crore. Fixed assets declined from Rs 195.87 crore as of 31 March 2020 to Rs 184.95 crore as of 31 March 2021. Intangible assets declined from Rs 0.94 crore to Rs 0.73 crore.

Profit before tax grew 142.97% to Rs 303.10 crore. Provision for tax was expense of Rs 79.14 crore, compared to Rs 29.11 crore. Effective tax rate was 26.11% compared to 23.33%.

Profit after tax rose 134.17% to Rs 223.96 crore.

Promoters’ stake was 71.75% as of 31 March 2021 compared to 71.75% as of 31 March 2020 .

Cash flow from operating activities decreased to Rs 123.84 crore for year ended March 2021 from Rs 177.02 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 9.12 crore, compared to Rs 11.96 crore during the year ended March 2020.

The scrip is currently trading at Rs 1062

Savita Oil Technologies : Standalone Results
Particulars	2112 (03)	2012 (03)	Var.(%)	2112 (09)	2012 (09)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	738.36	534.91	38	2034.03	1279.25	59	1,912.32	2,046.18	-7
OPM (%)	9.7	19.6		12.6	13.1		15.7	7.6
OP	71.95	104.78	-31	257.08	167.26	54	300.39	155.35	93
Other Inc.	9.04	11.70	-23	24.15	28.05	-14	31.82	11.61	174
PBIDT	80.99	116.48	-30	281.23	195.31	44	332.21	166.96	99
Interest	3.76	2.26	66	12.86	5.91	118	8.92	19.99	-55
PBDT	77.23	114.22	-32	268.37	189.40	42	323.29	146.97	120
Depreciation	5.13	5.03	2	14.97	14.82	1	20.19	22.22	-9
PBT before EO	72.10	109.19	-34	253.40	174.58	45	303.1	124.75	143
EO Income	0.00	0.00		0.00	0.00		0	0	-
PBT after EO	72.10	109.19	-34	253.40	174.58	45	303.1	124.75	143
Taxation	15.57	28.09	-45	63.25	45.16	40	79.14	29.11	172
PAT	56.53	81.10	-30	190.15	129.42	47	223.96	95.64	134
EPS (Rs)*	#	#		#	#		162.1	69.2
Notes
* EPS is on current equity of Rs 13.82 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Savita Oil Technologies : Standalone Segment Results
	% of (Total)	2112 (03)	2012 (03)	Var.(%)	% of (Total)	2112 (09)	2012 (09)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
Petroleum Products	99	740.25	531.51	39	99	2,015.49	1,262.23	60	98	1,891.70	2,012.61	-6
Wind Power	1	3.89	5.57	-30	1	28.01	27.63	1	2	33.03	39.58	-17
Total Reported Sales	100	744.14	537.08	39	100	2,043.50	1,289.86	58	100	1,924.73	2,052.19	-6
Less: Inter segment revenues		0	0	-		0	0		0	0	-
Net Sales		744.14	537.08	39		2,043.50	1,289.86	58		1,924.73	2,052.19	-6
PBIT
Petroleum Products	101	81.08	111.29	-27	95	254.6	170.97	49	98	311.45	138.81	124
Wind Power	-1	-0.97	-3.17	70	5	12.86	7.95	62	2	5.74	19.43	-70
Total PBIT	100	80.12	108.12	-26	100	267.46	178.92	49	100	317.19	158.24	100
Less : Interest		3.76	2.26	66		12.86	5.91	118		8.92	19.99	-55
Add: Other un-allcoable		-4.26	3.34	PL		-1.2	1.58	PL		-5.16	-13.5	62
PBT		72.1	109.19	-34		253.4	174.58	45		303.1	124.75	143

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