Slide 1: Q4 & FY19 Results Presentation
May 13, 2019 Q4 & FY19 RESULTS PRESENTATION
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could 2 cause actual re
Slide 3: Q4 & FY19 Performance Overview
Q4 & FY19 Performance Overview
Slide 4: Financial Summary
Financial Summary Revenue from operations up 25%; EBITDA expansion of 59%; PAT of Rs. 31 cr FY19 FY18 Film business remained the key growth driver for the business during the year on the back of favorable operating 1,028 824 Revenues environment 4 Figs in cr. Improved demand supply scenario result
Slide 5: Debt rationalization
Debt rationalization Outstanding interest bearing external term debt of Rs. 76 cr as on 31st March 2019 Repayment Schedule FY20 Rs. 19 cr FY21 Rs. 20 cr FY22 Rs. 18 cr FY23 Rs. 19 cr 5 Repayment obligation during FY 2018-19 was Rs. 44 crore. Repayment obligation will reduce significa
Slide 6: Business wise Financial Performance
Business wise Financial Performance Polyester Film business continues to perform well – driving bulk of the profitability Specialty Polymer and Engineering Plastics business to contribute to the overall revenue growth of the business Polyester Films – Stellar performance marked by FY19 v/s FY18
Slide 7: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have ended the year on a strong note with revenue growth of 25% and profitability growth of five fold respectively. Overall improved performance for FY19 was largely driven by the stellar perform
Slide 8: Specialty Polymers
Specialty Polymers
Slide 9: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 7 18 High entry barriers - Patents Product Patent protected filed portfolio business (Product & process) 9 30,000MTPA 20%+ Production Capacity Margins on achieving of adequate scale of operations
Slide 10: Business highlights: Specialty Polymers
Specialty Polymers Revenue EBIT • Soft performance for major part of the year 49 Figs in cr. 30 • FY20 looks promising – positive developments across key products 10 12 4 6 1 should result in revenue and profitability acceleration -1 • Product pipeline remains strong; continue to strengthen R&D and
Slide 11: Tide turning slowly but surely; optimistic about FY20
Tide turning slowly but surely; optimistic about FY20 Partners with a Global Chemical Leader in Manufacturing innovative Polybutylene Terephthalate (PBT) Signed ‘Manufacture and Supply Agreement’ with a global chemical leader in April 2019 effective 1st April 2019 Agreement is renewable by mut
Slide 12: Patent Status
Patent Status Product approval Product Code Product Description Status of Patent Application from customer ESTER HR-03 Hot Fill PET by normal ISBM Granted in USA and filed in Approved Packaging India, Europe, Korea, Mexico, Japan & China ESPET MB-03 Masterbatch Sulfonated PET Granted in USA and file
Slide 13: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Rigid Packaging – Hot-fill / Beer Kegs Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches Applications Polybutylene Terephthalate (PBT) Products Carpets – Stain Resistant Master Batches Polyethylene Naphthalate (PEN) H
Slide 14: Polyester Films
Polyester Films
Slide 15: Polyester Film – De-Commoditizing
Polyester Film – “De-Commoditizing” ` De-commoditizing the Mfg. Capacity -57,000MTPA Improving sector fundamentals – business by changing Polyester Films & 13,200 MTPA Better pricing environment; product mix Metalized polyester films limited capex planned over the next 2 years 15 #56 ~30% Cost reduc
Slide 16: Business highlights: Polyester Films
Polyester Films Revenue EBIT • Stellar performance – revenue growth of xx%, driven by 803 higher volume and better realizations Figs in cr. 586 • Share of value added products ~20% during FY19 162 202 • Expect momentum to continue on the back of growing 59 120 20 36 demand and limited supply FY18 FY
Slide 17: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics • Market size of Domestic BOPET films ~430000 - ~440000 tpa • Domestic demand growing at 10%-12% • Expect market to absorb with minimal disruption the incremental supply (80,000 tpa) expected to hit the market during the year 17 Company s
Slide 18: Polyester Films – Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Flexible Packaging High Barrier Embossable Barrier Packaging Applications Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Barrier Matte Label & Graphics 18
Slide 19: Engineering Plastics
Engineering Plastics
Slide 20: Engineering Plastics – Deliver better Return ratios
Engineering Plastics – “Deliver better Return ratios” #250 13,500MTPA “Estoplast” Product Portfolio Mfg. capacity Products marketed under the brand 20 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling costs to improve at
Slide 21: Business highlights: Engineering Plastics
Engineering Plastics • Revenue growth of 13.9%, driven primarily by higher polymer rates, Revenue EBIT significantly higher than volume growth of 1.2% • Lower demand & increased competition coupled with polymer rate Figs in cr. 171 195 crash in H2 (impact of US – China Trade War) lead to higher cost
Slide 22: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications Switchgear Industry Polybutylene Terephthalate (PBT) MCB, MCCB, RCCB, etc. Case, Cover & other Parts Polyethylene Terephthalate (PET) Lighting Industry Switches, Sockets, LED/CFL Holders, etc. Polyamide 6 (Nylon 6) Appliances Industry Applications Knobs
Slide 23: Investor Contacts
Investor Contacts For more information contact: About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO Pradeep Kumar Rustagi 9001:2008,ISO 22000:2005,TS16949:2002 certified Company (Chief Financial Officer) engaged in the manufacture of polyester film