Ester Industries Limited · NSE:ESTER
Ester Industries — Q3 FY21 Earnings Presentation
25 slides from Ester Industries's earnings presentation, Feb 2, 2021
Slide 1: Cover letter to BSE and NSE
Date: 2nd February, 2021 BSE Limited National Stock Exchange of India Limited Department of Corporate services Exchange Plaza, Phirojee Jeejeebhoy Towers Plot no. C/1, G Block, Dalal Street, Mumbai – 400023 Bandra‐Kurla Complex, Bandra (E), Mumbai – 400051 Scrip Code: 500136 Symbol: ESTER Dear Sir S
Slide 2: Q3 FY21 Results Presentation
February 2nd, 2021 Q3 FY21 RESULTS PRESENTATION
Slide 3: 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 4: Q3 & 9M FY21 Performance Overview
Q3 & 9M FY21 Performance Overview
Slide 5: Financial Summary
Financial Summary Revenue (Rs. Cr) 784 Strong performance of Film and Engineering 695 246 Plastics business resulted in 4% revenue 256 254 251 growth (surpassed FY20 quarterly run-rate 284 188 for the first time in FY21) for the quarter. FY20 FY21 External factors impact Specialty Polymer though rev
Slide 6: Debt rationalization measures
Debt rationalization measures…. Focused on improving Debt/EBITDA (x) by paying off debt / reduced utilization of WC limits Term Debt Repayment Interest Bearing Debt (net of free Interest Bearing Debt (net of free cash) / cash) (Rs. crore) Annualized EBITDA (x) 44.1 43.6 171.5 38.3 157.4 157.02 35.4
Slide 7: Upgrade in External Credit Rating
….translating to upgrade in External Credit Rating Brickwork CRISIL Amount (Rs.cr) Rating Amount (Rs.cr) Rating BWR A – (stable) CRISIL A - / Stable Long – term Rating 245.97 275.70 (upgrade) (assigned) CRISIL A2 + Short – term Rating 165.30 BWR A2+ (upgrade) 135.30 (assigned) 6 411.00 Total 411.27
Slide 8: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “Revenue and profitability both registered an increase year on year on the back of strong performance of the Film and Engineering Plastics businesses. Engineering Plastics business in fact delivered
Slide 9: Specialty Polymers
ESTER ——— INDUSTRIES LTD.
Slide 10: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 8 (+1) 22 (+3) High entry barriers - Patents Product Patent protected filed portfolio business (Product & process) 9 30,000MTPA 35%+ Production Capacity EBIT margins on achieving of adequate scale of operations
Slide 11: Specialty Polymers Business overview
Specialty Polymers • Exports of MB 03 to USA affected due to exceptional situation caused Revenue EBIT Margins (%) by Covid – 19. Effects of vaccination drive likely to normalise situation 55 by April 21. Normal level of exports likely from May / June 21. 38.2 35 • Demand for existing and newly intr
Slide 12: Strong product portfolio
Strong product portfolio 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 for 2 years for 400 MT per annum While agreement is for no
Slide 13: 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 India, Approved Packaging filed in Europe ESPET MB-03 Masterbatch Sulfonated PET Granted in US, India and Approved Stain Resistance in
Slide 14: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Rigid Packaging – Hot-fill / Beer Kegs Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master batch Applications Polybutylene Terephthalate (PBT) Products Carpets – Stain Resistant Master Batches P
Slide 15: Polyester Films
ESTER ——— INDUSTRIES LTD.
Slide 16: Polyester Film – De-Commoditizing
Polyester Film – “De-Commoditizing” ` De-commoditizing the Mfg. Capacity -57,000MTPA Strong sector fundamentals – business by changing Polyester Films & 13,200 MTPA Stable pricing environment; product mix Metalized polyester films New Capacity of 48,000 MTPA 15 to commence production by October 2022
Slide 17: Polyester Films Business overview
Polyester Films Margins (%) • Q-o-Q: Maintenance shutdown undertaken during the quarter., Revenue EBIT resulted in lower volume and revenue generation 613 • Y-o-Y: Favorable demand – supply scenario, higher operating 533 32.9 leverage resulting in better profitability & margin Figs in cr. 22.2 21.7
Slide 18: Potential impact of Covid-19 on the Film business
Potential impact of Covid-19 on the Film business Demand from the Consumer Staples sector for flexible packaging is expected to remain strong Increased focus on health & hygiene products to widen opportunity Raw material started to rise from November. Have started to stabilise now. Due to ch
Slide 19: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics Market size of Domestic BOPET films ~540000 tpa Domestic demand growing at 11%-13% Incremental supply of about 65,000 TPA on account of commissioning of 2 new production lines in August & November 2019 already absorbed by the market
Slide 20: Polyester Films – Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Flexible Packaging Applications High Barrier Embossable Barrier Packaging Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Barrier Matte Label & Graphics 19
Slide 21: Engineering Plastics
ESTER INDUSTRIES LTD. Engineering Plastics
Slide 22: Engineering Plastics – Structurally positive; near term challenging
Engineering Plastics – “Structurally positive; near term challenging” #250 13,500MTPA “Estoplast” Product Portfolio Mfg. capacity Products marketed under the brand 21 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling cost
Slide 23: Engineering Plastics Business highlights
Engineering Plastics • Delivers best quarterly performance till date Revenue EBIT Margins (%) • Revenue and profitability growth following strong pick up in demand 127 from end user industries – OFC, Auto and electrical & electronics Figs in cr. 116 4.3 14.8 industry 5.3 61 19.6 38 12 19 • Elevated
Slide 24: 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 25: 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 50001:2018, ISO 9001:2015, ISO 14001:2015, IATF (Chief Financial Officer) 16949:2016, ISO 45001:2018 and Food Safety System Es