Ester Industries Limited · NSE:ESTER
Ester Industries — Q3 FY20 Earnings Presentation
24 slides from Ester Industries's earnings presentation, Feb 11, 2020
Slide 1: Cover letter to stock exchanges
ESTER INDUSTRIES LTD. GIN: L24111UR1985PLC015063 Date: n•h February, 2020 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- 400
Slide 2: Q3 & 9M FY20 Results Presentation
February 10, 2020 Q3 & 9M FY20 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 FY20 Performance Overview
Q3 & 9M FY20 Performance Overview
Slide 5: Financial Summary
Financial Summary (9%) 55% 138% Momentum in Film & Specialty Figs in cr. Polymer business drives revenue Q3 FY20 246 45 19 growth Q3 FY19 270 29 8 Greater contribution of high 4 margin Specialty Polymer business along with steady volumes & margins in Film business aids EBITDA & profitability expansi
Slide 6: Debt rationalization
Debt rationalization Actual Debt Repayment (Rs. crore) in the past…… ….resulting in strengthening B/S & gearing ratios Interest Bearing Debt (Rs. crore) Interest Bearing Debt / Annualised EBITDA (x) 44.1 43.59 38.29 289.7 289.7 274.9 242.5 25.23 2.71 2.67 2.49 201.3 171.5 2.13 157.4 0.95 0.89 0.79 F
Slide 7: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have delivered yet another solid quarter marked by strong profitability growth. The positive momentum was largely driven by the strong performances of Film and Specialty Polymer business. FY20 is
Slide 8: Specialty Polymers
ESTER ——— INDUSTRIES LTD.
Slide 9: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 7 19 High entry barriers - Patents Product Patent protected filed portfolio business (Product & process) 8 30,000MTPA 20%+ Production Capacity Margins on achieving of adequate scale of operations
Slide 10: Specialty Polymers Business highlights
Specialty Polymers Revenue EBIT Margins (%) 55 • Stellar 9M – 125% revenue growth; ~8x profitability expansion 41.5 • Higher off-take of products; export sales of high margin MB03 & Figs in cr. 30 24 iQPBT drove bulk of the growth 12.5 23 • Margin expansion on the back of high operating leverage 1 3
Slide 11: Expect business momentum to continue in FY21
Expect business momentum to continue in FY21 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 mutual conse
Slide 12: Board approves Capex plan to address growing demand
Board approves Capex plan to address growing demand Board approves investment of Rs. 110 cr in the Specialty Polymers SBU. Investment to be funded through a mix of Debt & Internal Accruals in the ratio of 2 : 1 Sanction for majority of the proposed term debt has already been obtained Fresh i
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 filed in Approved Packaging India, Europe ESPET MB-03 Masterbatch Sulfonated PET Granted in USA and filed in Approved Stain Resistance
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 - 60,000MTPA Strong sector fundamentals – business by changing Polyester Films & 13,200 MTPA Stable pricing environment; product mix Metalized polyester films 15 ` #56 ~30% ` No. of countries Share of value added Cost rationali
Slide 17: Polyester Films Business highlights
Polyester Films Revenue EBIT Margins (%) • Strong Performance – Sharp improvement in Profitability & margins 803 • Steady volume growth amidst balanced Demand – Supply situation 601 613 • Realisations remain steady despite additional capacities entering the market Figs in cr. 13.9 21.4 during curren
Slide 18: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics • Market size of Domestic BOPET films ~480000 tpa • Domestic demand growing at 10%-12% • Incremental supply of about 65000 TPA on account of commissioning of 2 new production lines in August & November 2019 already absorbed by the market
Slide 19: 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 18
Slide 20: Engineering Plastics
ESTER INDUSTRIES LTD. Engineering Plastics
Slide 21: 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 20 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling cost
Slide 22: Engineering Plastics Business highlights
Engineering Plastics Revenue EBIT Margins (%) • Overall economic slowdown & Softness in Auto segment – biggest end user continues to weigh on the performance Figs in cr. 195 148 • Working towards increasing share of high margin products in the 4.1 116 4.3 overall mix 8 6 5 FY19 9MFY19 9MFY20 21 Busi
Slide 23: 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 24: 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