Well Satia"s performance is improving because of the following reasons:
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A large portion of their production is contracted out to state education boards, here the effect of raw material price change is delayed. This was actually a negative when paper prices were increasing very fast. At that time Satia’s profits were lagging its peers. Buy now this is benefitting them.
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Their utilisation of PM4 is continuously increasing leading to operating leverage benefits.
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They have installed new pulp machines whose benefits didn’t fully materialise in the last quarter
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