Ester Industries Limited · NSE:ESTER
Ester Industries — Q4 FY21 Earnings Presentation
24 slides from Ester Industries's earnings presentation, May 18, 2021
Slide 1: Q4 FY21 Results Presentation
May 18th, 2021 Q4 FY21 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 & FY21 Performance Overview
Q4 & FY21 Performance Overview
Slide 4: Financial Summary
Financial Summary Revenue (Rs. Cr) Sharp pick up in Engineering Plastics and Specialty 1,039 992 Polymers businesses coupled with the consistent 255 297 healthy performance of Film business resulted in 246 256 254 251 17% growth in revenues for the quarter 284 188 FY20 FY21 Improved profitability of
Slide 5: Debt rationalization measures
Debt rationalization measures…. Focused on improving Debt/EBITDA multiple 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 38.3 157.0 157.0 3
Slide 6: Translating to 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 7: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “FY21 has been a landmark year for us; a year wherein we delivered our highest profitability till date. While legacy Film business continued to deliver strong performance, another legacy business, En
Slide 8: Specialty Polymers
ESTER ——— INDUSTRIES LTD.
Slide 9: 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 10: Business overview: Specialty Polymers
Specialty Polymers • Ended the year on a positive note, following sharp pick up in MB-03 Revenue EBIT Margins (%) volumes during Q4. Performance of Innovative PBT remained solid throughout the year 73 • Newly introduced products as well have been well received. Expect pick-up 38.0 59 Figs in cr. in
Slide 11: 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 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 India, Approved Packaging filed in Europe ESPET MB-03 Masterbatch Sulfonated PET Granted in US, India and Approved Stain Resistance in
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, Cationic dyeable master batch Applications Polybutylene Terephthalate (PBT) Products Carpets – Stain Resistant Master Batches P
Slide 14: Polyester Films
ESTER ——— INDUSTRIES LTD.
Slide 15: 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 16: Business overview: Polyester Films
Polyester Films • Volumes during the quarter remained strong on the back of consistent Revenue EBIT Margins (%) demand. EBIT though declined following softness in margins in export 805 markets owing to time lag between higher raw material prices and 727 30.1 corresponding adjustment in sales realiza
Slide 17: 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 se
Slide 18: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics Market size of Domestic BOPET films ~540000 MTPA Domestic demand growing at 11%-13% 18 Company specific initiatives Setting up an advanced polyester film manufacturing facility in the state of Telangana Capex of Rs. 587 crore; Tar
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 19
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 21 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling cost
Slide 22: Business highlights: Engineering Plastics
Engineering Plastics • Best performance till date; delivers stellar performance in FY21 - Strong volumes and operating leverage resulted in higher profitability Revenue EBIT Margins (%) • Unprecedented margin expansion • Strong pick up in demand from end user industries – OFC, Auto and Figs in cr. 2
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 50001:2018, ISO 9001:2015, ISO 14001:2015, IATF (Chief Financial Officer) 16949:2016, ISO 45001:2018 and Food Safety System Es