Capitaline

Results 13-Feb-25

Analysis

Savita Oil Technologies

Expect margin normalization in the coming quarters

Savita Oil Technologies, a leading manufacturer of petroleum specialty products net sales of Savita Oil Technologies has declined 1.35% to Rs 945.43 crore. Sales of Petroleum Products segment has gone down 2% to Rs 944.95 crore (accounting for 100% of total sales). Sales of Wind Power segment has gone down 30% to Rs 2.85crore (accounting for 0% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 63% to Rs 34.71 crore. PBIT of Petroleum Products segment fell 62% to Rs 35.99 crore (accounting for 104% of total PBIT). PBIT of Wind Power segment was negative.

PBIT margin of Petroleum Products segment fell from 9.9% to 3.8%. PBIT margin of Wind Power segment fell from -1.5% to -44.7%. Overall PBIT margin fell from 9.8% to 3.7%.

Operating profit margin has declined from 8.93% to 2.31%, leading to 74.43% decline in operating profit to Rs 21.87 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 80.17% to 84.39%. Purchase of finished goods cost rose from 0.09% to 0.11%. Employee cost increased from 2.31% to 2.42%. Other expenses rose from 8.75% to 10.71%.

Other income fell 72.67% to Rs 6.41 crore. PBIDT fell 74.05% to Rs 28.28 crore. Provision for interest fell 28.13% to Rs 7.05 crore.

PBDT fell 78.59% to Rs 21.23 crore. Provision for depreciation fell 10.38% to Rs 6.13 crore.

Profit before tax down 83.65% to Rs 15.10 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 2.62 crore, compared to Rs 24.98 crore. Effective tax rate was 17.35% compared to 27.05%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 81.47% to Rs 12.48 crore.

Promoters’ stake was 68.91% as of 31 December 2024 ,compared to 71.92% as of 31 December 2023.

Key Highlights

Double digit volume growth in both the Industrial and Automotive segments of the Lubricant Division

Transformer oil volume also grew by high single digit on YoY basis.

Focus remains on building the newly launched Savsol Ester5 Brand and augmenting its distribution penetration, which will see increased marketing spends.

Margins impacted by fall in crude oil prices and forex impact (rupee depreciation) on inventory holdings.

International business has started showing improvement in December’24 in demand, although Q3 largely was impacted by escalated freights and limited frequency on routes.

Commenting on the performance Mr. Gautam N. Mehra, Chairman and Managing Director, said –

“In the third quarter of FY25, the company reported a total income of Rs 952 crore with single digit volume growth on year-on-year basis. Despite a significant drop in crude prices and challenges in the international markets, the company achieved a PBT of Rs 15.1 crore for the quarter. Overall sales volumes remained stable, backed by double-digit growth in the Lubricant Division and high single digit growth in Transformer oil on a YoY basis. Demand for White & Mineral Oils was muted in line with performance of major FMCG players and the industry, expects a gradual pickup in the coming quarters. DEF volumes showed healthy growth of 58% on a YoY basis.

We remain steadfast in positioning Savsol Ester 5 as a leading technology platform for the automotive lubricant market with continued investments in product development, brand-building and a broader range of ester molecules for advanced applications.

We have received some important customer approvals for our newly launched Esters across the Power and EV sectors. We are confident about the rapid growth of our products in both these segments.

Margins which were squeezed in Q3’25 due to falling crude prices and the rupee depreciation are recovering, and we expect normalization in the coming quarters.”

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Savita Oil Technologies has increased 1.47% to Rs 2808.14 crore. Sales of Petroleum Products segment has gone up 1% to Rs 2787.99 crore (accounting for 99% of total sales). Sales of Wind Power segment has gone down 16% to Rs 24.90 crore (accounting for 1% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 48% to Rs 124.59 crore. PBIT of Petroleum Products segment fell 49% to Rs 112.5 crore (accounting for 90% of total PBIT). PBIT of Wind Power segment fell 27% to Rs 12.09 crore (accounting for 10% of total PBIT).

PBIT margin of Petroleum Products segment fell from 7.1% to 4.1%. PBIT margin of Wind Power segment fell from 65.3% to 60.6%. Overall PBIT margin fell from 7.9% to 4.8%.

Operating profit margin has declined from 7.76% to 3.99%, leading to 47.88% decline in operating profit to Rs 111.94 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 81.28% to 83.77%. Purchase of finished goods cost fell from 0.37% to 0.09%. Employee cost increased from 2.30% to 2.54%. Other expenses rose from 8.40% to 9.62%.

Other income fell 23.36% to Rs 41.5 crore. PBIDT fell 42.95% to Rs 153.44 crore. Provision for interest fell 19.78% to Rs 22.22 crore.

PBDT fell 45.61% to Rs 131.22 crore. Provision for depreciation rose 8.88% to Rs 17.91 crore.

Profit before tax down 49.59% to Rs 113.31 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 29.34 crore, compared to Rs 54.82 crore. Effective tax rate was 25.89% compared to 24.39%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 50.60% to Rs 83.97 crore.

Promoters’ stake was 68.91% as of 31 December 2024 ,compared to 71.92% as of 31 December 2023 .

The scrip is currently trading at Rs 424

Savita Oil Technologies: Results
	2412 (03)	2312 (03)	Var.(%)	2412 (09)	2312 (09)	Var.(%)	2403 (12)	2303 (12)	Var.(%)
Net Sales	945.43	958.39	-1	2,808.14	2,767.54	1	3,740.85	3,630.44	3
OPM(%)	2.3%	8.9%		4.0%	7.8%		6.8%	9.3%
OP	21.87	85.54	-74	111.94	214.79	-48	253.45	335.83	-25
Other Income	6.41	23.45	-73	41.5	54.15	-23	71.24	22.94	211
PBIDT	28.28	108.99	-74	153.44	268.94	-43	324.69	358.77	-9
Interest	7.05	9.81	-28	22.22	27.7	-20	37.79	35.41	7
PBDT	21.23	99.18	-79	131.22	241.24	-46	286.90	323.36	-11
Depreciation	6.13	6.84	-10	17.91	16.45	9	23.16	20.59	12
PBT	15.10	92.34	-84	113.31	224.79	-50	263.74	302.77	-13
EO	0.00	0.00		0.00	0.00		0.00	0.00
PBT after EO	15.10	92.34	-84	113.31	224.79	-50	263.74	302.77	-13
Total Tax	2.62	24.98	-90	29.34	54.82	-46	62.98	77.07	-18
PAT	12.48	67.36	-81	83.97	169.97	-51	200.76	225.70	-11
PPI	0.00	0.00		0.00	0.00		0.00	0.00
PAT after PPI	12.48	67.36	-81	83.97	169.97	-51	200.76	225.70	-11
EPS*	#	#		#	#		29.1	32.7
* Annualized On Current Equity Of Rs 13.82 Crore of face value of Rs 2 each
#EPS not annualised due to seasonality of business, PPI: Prior Period Item
EO: Extraordinary Items, PL: Profit to Loss, LP: Loss to Profit
EPS Is Calculated After Excluding EO And Relevant Tax
Figures In Rs Crore
Source: Capitaline Database

Savita Oil Technologies : Consolidated Segment Results
	% of (Total)	2412 (03)	2312 (03)	Var.(%)	% of (Total)	2412 (09)	2312 (09)	Var.(%)	% of (Total)	2403 (12)	2303 (12)	Var.(%)
Sales
Petroleum Products	100	944.95	961.41	-2	99	2787.99	2751.13	1	99	3,726.36	3,605.49	3
Wind Power	0	2.85	4.08	-30	1	24.90	29.65	-16	1	33	34.48	-4
Total Reported Sales	100	947.80	965.49	-2	100	2812.89	2780.77	1	100	3759.36	3639.97	3
PBIT
Petroleum Products	104	35.99	94.87	-62	90	112.50	221.49	-49	94	265.71	335.11	-21
Wind Power	-4	-1.27	-0.06	2012	10	12.09	16.63	-27	6	16.22	16.13	PL
Total PBIT	100	34.71	94.81	-63	100	124.59	238.12	-48	100	281.93	351.24	-20
Less : Interest		7.05	9.81	-28		22.22	27.70	-20		37.78	35.41	7
Add: Other un-allcoable		-12.56	7.33	-271		10.94	14.36	-24		19.6	-13.07	LP
PBT		15.10	92.33	-84		113.31	224.79	-50		263.75	302.76	-13

Previous News

Savita Oil Technologies consolidated net profit declines 42.24% in the March 2023 quarter
( Results - Announcements 27-May-23 07:44 )

Savita Oil Technologies Ltd Surges 4.8%, BSE Energy index Gains 1.69%
( Hot Pursuit - 17-Jan-25 09:30 )

Savita Oil Technologies appoints CFO
( Corporate News - 26-Sep-23 18:17 )

Savita Oil Technologies fixes record date for buyback of shares
( Market Beat - Reports 19-Feb-21 13:24 )

Savita Oil Technologies to convene board meeting
( Corporate News - 04-May-24 15:59 )

Savita Oil Technologies
( Results - Analysis 04-Feb-20 11:25 )

Savita Oil Technologies announces board meeting date
( Corporate News - 22-Oct-21 12:26 )

Savita Oil Technologies to announce Quarterly Result
( Corporate News - 22-Jan-20 14:46 )

Savita Oil Technologies standalone net profit rises 58.18% in the March 2016 quarter
( Results - Announcements 01-Jun-16 14:56 )

Board of Savita Oil Technologies approves buyback of shares up to Rs 35.14 cr
( Corporate News - 19-Feb-21 13:22 )

Savita Oil Technologies
( Results - Analysis 16-Nov-15 15:31 )