Ester Industries Limited · NSE:ESTER
Ester Industries — H1 FY20 Earnings Presentation
22 slides from Ester Industries's earnings presentation, Nov 14, 2019
Slide 1: H1 FY20 Results Presentation
November 14, 2019 H1 FY20 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: H1 FY20 Performance Overview
H1 FY20 Performance Overview
Slide 4: Financial Summary
Financial Summary (8%) 71% 164% Figs in cr. Robust performance of Film and Q2 FY20 254 46 19 Specialty Polymer business drive bulk of the profitability growth Q2 FY19 276 27 7 Better product mix and higher 4 volumes across Film and Specialty Polymer business coupled with stringent cost management re
Slide 5: Debt rationalization
Debt rationalization Outstanding interest bearing external term debt of Rs. 73 cr as on 30th Sept. 2019 including Rs. 5.84 cr disbursed out of a fresh Interest Bearing Debt (Rs. crore) sanctioned TL of Rs. 16 cr. Balance Rs. 10.16 cr will be disbursed by 31st March 2020 290.2 289.7 289.7 275.0 242
Slide 6: Chairman’s Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have had a strong first half with revenue and profitability growth largely driven by solid performance of Film and Specialty Polymer business. Engineering Plastic while going through a challengin
Slide 7: Specialty Polymers
ESTER ——— INDUSTRIES LTD.
Slide 8: 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 9: Business highlights: Specialty Polymers
Specialty Polymers Revenue EBIT Margins (%) 35 • Strong First half – 72% revenue growth; 3x profitability expansion 803 37.1 • Higher off-take of products; especially MB03 drove bulk of the Figs in cr. 20 20.0 13 quarterly growth 4 • Margin expansion on the back of high operating leverage 1 • Expect
Slide 10: Expect business momentum to continue in H2 FY20
Expect business momentum to continue in H2 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 mutual co
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 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 12: 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 13: Polyester Films
ESTER ——— INDUSTRIES LTD.
Slide 14: 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 limited capex planned over the next 2 years 14 ` #56 ~30% ` No. of co
Slide 15: Business highlights: Polyester Films
Polyester Films Revenue EBIT Margins (%) • Business momentum sustained resulting in revenue and profitability growth of 803 11% & 77% respectively • Revenue growth largely volume driven; realisations marginally softened. 425 Figs in cr. 382 13.4 21.4 Expect to sustain the increased volume going forw
Slide 16: 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 35000 tpa commissioned in Aug 2019 already absorbed by the market with minimal disruption. Incremental supply of another 30000
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
ESTER INDUSTRIES LTD. Engineering Plastics
Slide 19: 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 19 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling cost
Slide 20: Business highlights: Engineering Plastics
Engineering Plastics Revenue EBIT Margins (%) • Business environment continues to remain challenging. Overall slowdown (specifically Auto segment) continues to impact demand & margins for the SBU. Figs in cr. 195 4.9 • Impact of US – China Trade War on prices / margins 101 78 3.8 8 5 3 • Working tow
Slide 21: 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 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