Ester Industries Limited · NSE:ESTER
Ester Industries — Q3 FY2019 Earnings Presentation
22 slides from Ester Industries's earnings presentation, Feb 11, 2019
Slide 1: Q3 & 9M FY19 Results Presentation
February 11, 2019 Q3 & 9M 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: Q3 & 9M FY19 Performance Overview
Q3 & 9M FY19 Performance Overview
Slide 4: Financial Summary
Financial Summary Revenue from operations up 32%; EBITDA expansion of 74%; PAT of Rs. 23 cr 9M FY19 9M FY18 Revenue growth of 32%, largely driven by strong performance of Film business which continues to benefit from steady demand and 773 587 Revenues pricing environment. Engineering Plastics also
Slide 5: 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 – Strong performance on the 9M FY19 v/s 9M FY1
Slide 6: Debt rationalization
Debt rationalization Outstanding term debt of Rs. 85 cr as of Dec. 31 2018 Repayment Schedule Q4 FY19 Rs. 10 cr FY20 Rs. 20 cr FY21 Rs. 20 cr 6 FY22 Rs. 17 cr FY23 Rs. 18 cr Repayment obligation during FY 2018-19 is Rs. 44 crores which would reduce significantly to about Rs. 20 crore
Slide 7: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We are pleased with our performance for 9M FY19, a period wherein we delivered strong revenue and profitability growth of 32%. Film 7 business continued to drive bulk of the growth, on the back of s
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: Specialty Polymers Business highlights
Specialty Polymers Revenue EBIT • Muted performance owing to lower product off-take Figs in cr. 49 • Product pipeline remains strong; continue to strengthen R&D and 42 37 24 executional capabilities 3 10 5 3 • 2 -3 products are in advance stage of approval process which are FY17 FY18 9M FY18 9M FY19
Slide 11: 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 Filed in India, Europe, Korea, Approved Packaging USA (granted), Mexico, Japan & China, PCT ESPET MB-03 Masterbatch Sulfonated PET Filed in India, Europe
Slide 12: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Rigid Packaging – Hot-fill / Beer Kegs Polyethylene Terephthalate (PET) Textile – Flame Retardant Applications Polybutylene Terephthalate (PBT) Products Carpets – Stain Resistant Master Batches Heat Sealable Polyethylene Naphthalate (PEN) Engineered Plast
Slide 13: Polyester Films
Polyester Films
Slide 14: 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 14 #56 ~30% No. of cou
Slide 15: Polyester Films Business highlights
Polyester Films Revenue EBIT • Improving sector dynamics: Demand – Supply equilibrium Figs in cr. 586 601 resulting in stable and better pricing environment 519 425 • Steady demand coupled with improved product mix and 46 59 39 84 pricing environment resulted in revenue growth of 41% FY17 FY18 9M FY
Slide 16: Film Business – Better days ahead
Film Business – Better days ahead Industry Dynamics turning for the better • Demand – Supply equilibrium (Domestic) • Limited Capacity addition in near term • Better pricing environment 16 Company specific initiatives • Working towards increasing the share of value added products – ~35% by FY20 • On
Slide 17: 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 17
Slide 18: Engineering Plastics
Engineering Plastics
Slide 19: 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 19 “Fastest Growing Enterprise Improving product mix Processing (Engineering Polymers)” to improve margin at the Plastindia Exhibition in profile & retu
Slide 20: Engineering Plastics Business highlights
Engineering Plastics Revenue EBIT • Business continues to perform well, contributing steadily to the 171 overall revenue growth 145 125 148 • Higher input prices caused by volatile crude prices during quarter Figs in cr. ended December 2018 resulted in profitability compression 13 13 10 6 • Working
Slide 21: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications CFL Holders, Adopters & Sockets Thermoplastic Polyester Compounds MCB Case, Cover & other Parts Applications Polybutylene Terephthalate (PBT) Handles Products Knobs, Panels Polyethylene Terephthalate (PET) Switches Polyamide 6 Compounds Optical Fibre Sh
Slide 22: 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