Savita Oil Technologies Limited reported a total income of ₹952 crore for Q3 FY25, reflecting a year-on-year decline of 3.1%, while EBITDA dropped significantly by 74% to ₹28.3 crore, resulting in an EBITDA margin of just 3%. Profit Before Tax (PBT) fell 83.6% to ₹15.1 crore. The year-on-year performance was positively impacted by double-digit volume growth in both the Industrial and Automotive segments of the Lubricant Division. Additionally, Transformer oil volume also saw high single-digit growth.
The company plans to boost its Savsol Ester5 brand's distribution and marketing efforts, which could enhance future revenue. Although the international business faced challenges, there's a sign of recovery in demand beginning in December 2024. Margins, affected by falling crude prices and rupee depreciation, are expected to normalize in the coming quarters. Notably, DEF volumes grew by 58% YoY, indicating potential growth areas amidst a muted demand for White & Mineral Oils influenced by major FMCG market performance. Investors should watch closely for signs of recovery in overall demand and margin improvement.