Ester Industries Limited · NSE:ESTER
Ester Industries — Q4 FY2024 Earnings Presentation
34 slides from Ester Industries's earnings presentation, May 23, 2024
Slide 1: Exchange filing cover letter
Date: 23rd May, 2024 BSE Limited (BSE) National Stock Exchange of India Limited (NSE) 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 De
Slide 2: Investor Presentation May 2024
stor Presentation TD. May 2024
Slide 3: Forward-looking statements 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 cause actual results to dif
Slide 4: About Us, JV with Loop, Q4 & FY24 Results
About Us Key Developments – JV with Loop Industries Inc Q4 & FY24 Results Highlights 3
Slide 5: Diversified business portfolio and sales mix
Sales Mix (FY24) Diversified business portfolio Polyester Comprehensive product suite Films 88% State-of-the-art manufacturing facilities Global footprint Specialty Polymers 12% Experienced management team Healthy financial Position 4
Slide 6: Company key facts
1985 GURGAON, INDIA #2 Year of Incorporation Corporate Headquarters Business Segments* 500 – KHATIMA, About 50 COUNTRIES SITARGANJ, GURGAON CRISIL A - (Industry Outlook – Negative) 175 - HYDERABAD Global Footprint People Credit Rating (Long Term) PF - Polyester Film; SP - Specialty Polymers 5
Slide 7: Manufacturing facilities and locations
Sitarganj Haryana Uttarakhand Gurgaon Khatima Telangana* Corporate Headquarter Manufacturing facility *Commercial production at New BOPET Film plant at Telangana commenced on 20th January 2023 6
Slide 8: We serve about 50 countries
We serve about 50 Countries 7
Slide 9: Loop Industries JV
loap INDUSTRI ®@
Slide 10: JV with Loop Industries
Entered into a JV with Loop Industries., Inc to produce a unique product offering of lower carbon footprint recycled ~US$ 28bn dimethyl terephthalate (“rDMT”), recycled mono-ethylene Global Mkt size: DMT and MEG specialty chemicals glycol (“rMEG”) in India, using the Infinite Loop technology The
Slide 11: Loop's depolymerization process
Loop’s low heat, no added pressure Loop’s process begins with waste PET plastic and polyester fiber of 1 2 depolymerization technology breaks down the waste PET into its base low or no value which today end chemical building blocks, or monomers: up in landfill, incineration or DMT and MEG1 natural a
Slide 12: JV project capacity and economics
Output Products & Capacity: rDMT 70,000 MTPA; rMEG of 23,000 MTPA Estimated project capital expenditures: USD 165 Mn (Rs. 1,370 crore) Estimated Plant revenues: USD 159 Mn Rs. 1,320 crore (first full year of operation) Target EBITDA margins: ~33% Payback period: ~5 years 11
Slide 13: Plastic recycling regulations and targets
Zero plastic waste 2030 €800/tonne on 50% recycled content2 nonrecycled plastic Extended producer packaging based on responsibility2 amount of plastic 50% plastic packaging recycled by 2025 California requires plastic bottles contain >25% post-consumer resin by €450/tonne on virgin 202
Slide 14: Loop specialty chemicals target markets
Loop Specialty Chemicals (DMT and MEG) target markets Electronics Automotive Textile Cosmetics Rigid Flexible Packaging Packaging Loop DMT and MEG enable chemical companies to: Increase their Launch Contribute to sustainability new products supply chain product portfolio decarbonization 13
Slide 15: FY24 Results Overview
FY24 e Overview
Slide 16: Consolidated results
Particulars (Rs.cr) Q4 FY24 Q4 FY23 % FY24 FY23 % Total Income 220.3 255.7 (13.9) 881.7 1,094.7 (19.5) EBITDA (including Non operating income) 8.8 18.9 (53.4) 22.8 117.2 (80.5) Margins (%) 4.0 7.4 (340 bps) 2.6 10.7 (810 bps) PAT (9.2) 2.9 - (43.3) 35.8 - Margins (%) - 1.1 - - 3.3 - Challenging ex
Slide 17: Standalone results
Particulars – (Rs.cr) Q4 FY24 Q4 FY23 % FY24 FY23 % Total Income 279.9 293 (4.5) 1,090.5 1,122.6 (2.9) EBITDA (including Non operating income) 9.2 9 2.2 3.4 104.2 (96.7) Margins (%) 3.3 3.1 6.5 0.31 9.3 - PAT (23.7) (18) - (121.1) 11.7 - Margins (%) - - - - 1.04 - BOPET Films - Sales volume of 512
Slide 18: Chairman's commentary on results
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We are committed to achieve our objective of moving from commodity products to innovative & specialty products through use of new techno
Slide 19: Specialty Polymer
INDUSTRIES LTD. Specialty Polymer
Slide 20: Largely IP protected business
Customer High entry Largely IP retention barriers – High margin Marquee protected ensured as Export oriented patent business clientele business largely patent protected protected 19
Slide 21: Stain resistant carpet business opportunity
Problem Solution Business Opportunity USA, largest High cost towards carpet stain removal Flexible low cost solution producer of Carpets Stain marks on (nylon) carpets given Ester has developed a PET based master & Rugs boasts of spillover / spillage of liquid shortens its batch, which imparts p
Slide 22: Innovative PBT polymers
• Regularly manufacturing & supplying Innovative Polybutylene Terephthalate (PBT) polymers to a global chemical `leader • Ester Industries is amongst the only company globally equipped with the expertise and infrastructure to manufacture the product • Innovative PBT being manufactured from recycled
Slide 23: Specialty polymer products and applications
Consumer electronics Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master batch Applications Polybutylene Terephthalate (PBT) Carpets – Stain Resistant Master Batches Products Carpets – Deep Dyeable Master Batch Polyethylene Naphthalate (PE
Slide 24: Specialty polymer volumes and results
Figs. in cr Q4 Q4 Volumes (MT) Particulars % FY24 FY23 % FY24 FY23 Q4FY23 Q4FY24 Sales 852 878 (2.9) 2,535 3,613 (29.8) (Vol's MT) Revenue 32 52 (38.5) 101 198 (48.9) 468 Innovative PBT EBIT 9.1 12.2 (25.4) 21.9 57.2 (61.7) 194 Margins (%) 28.5 23.5 +500 bps 21.6 28.8 (720 bps) Witnessed good pick
Slide 25: Packaging (BOPET) Film Business
INDUSTRIES LTD. Packaging (BOPET) Film Business 24
Slide 26: Global and domestic BOPET scenario
Global Scenario: Domestic Scenario: Demand growth of 5.5% - 6.0% Strong double digit growth rate of 11%-13% pa over BOPET film used in flexible packaging applications will past 6 years continue to be the key end use sector, accounting for Low per capita consumption of BOPET; new innovative n
Slide 27: Film business capacity and key facts
108,000 23,200 #35 MTPA MTPA Years of experience Polyester Film capacity Metallized Polyester Film capacity (including Telangana capacity) (including Telangana capacity) About 67,000 Telangana 50 28% MTPA Plant Export market Share of value-added Polyethylene Terephthalate Commercial production (# of
Slide 28: Value added share, domestic and export mix
Value Added (%) *Film business (excl. chips) Domestic Exports 28 28 23% 20% 19% (Rs.cr) Q1FY24 Q2FY24 Q3FY24 Q4FY24 38% 25 24 EBIT 4.0 -2.4 -3.9 -0.2 77% 80% 81% 62% Margins (%) 2.3 -1.4 -2.4 -0.1 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Pass through business model for raw material pr
Slide 29: Film products and applications
White Opaque High Clear Flexible Packaging High Barrier Embossable Barrier Packaging Applications Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Barrier Matte Label & Graphics 28
Slide 30: Film business results
Figs. in cr Particulars Q4FY24 Q4FY23 % FY24 FY23 % Sales (Vol’s MT) 13,048 14,740 (11.5) 51,218 57,172 (10.4) Revenue 184 201 (8.5) 754 880 (14.3) EBIT 0.3 7 - (0.1) 72 - Margins (%) 0.13 3.4 - (0.01) 8.2 - Business environment remained challenging amidst heightened competition – Volumes improved
Slide 31: Ester Filmtech Telangana plant performance
Ester Filmtech Limited, a wholly-owned-subsidiary of Ester Industries Limited, commenced commercial production on 20th January 23 at new Polyester (BOPET) film manufacturing plant in the State of Telangana. Generated revenues worth Rs.76 crore during Q4FY24; volumes of 6,954 MT and revenue worth
Slide 32: Ester Filmtech financials
Particulars – (Rs.cr) Q3FY24 Q4FY24 FY24 Net Sales 73.3 75.42 276.85 Other Operating Income 0.60 0.88 2.26 EBITDA (15.2) (0.83) (21.26) Other Non-Operating Income 1.5 (0.42) 1.18 Cash Profit (22.4) (8.26) (52.48) PBT (28.7) (14.56) (77.71) PAT (28.7) (14.56) (77.71) 31
Slide 33: About Us
About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL), a public limited company, is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified. Company is promoted by the Singhania family. The company is one of India’s leading producers of Polyester Films and Spec
Slide 34: Thank You
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