Ester Industries Limited · NSE:ESTER
Ester Industries — H1 FY19 Earnings Presentation
21 slides from Ester Industries's earnings presentation, Nov 2, 2018
Slide 1: Q2 & H1 FY19 Results Presentation
November 2, 2018 Q2 & H1 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: Q2 & H1 FY19 Performance Overview
Q2 & H1 FY19 Performance Overview
Slide 4: Financial Summary
Financial Summary Revenue from operations up 25%; EBITDA expansion of 74%; PAT of Rs. 15 cr H1 FY19 H1 FY18 Strong performance of Film business – steady demand and better realizations contributed 503 402 Revenues majorly to the top line growth of 25%. Specialty Polymer and Engineering Plastics con
Slide 5: Business wise Financial Performance
Business wise Financial Performance Polyester Film business continues to deliver strong growth – Demand and Realisations remain steady Specialty Polymer and Engineering Plastics business to contribute to the overall revenue growth of the business Polyester Films – Steady demand & H1 FY19 v/s H1
Slide 6: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have had a good first half to the year wherein we have seen revenues and profitability both expand at a brisk pace largely owing to the 6 strong performance of our Film business. In addition to t
Slide 7: Specialty Polymers
Specialty Polymers
Slide 8: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 7 18 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: Specialty Polymers Business highlights
Specialty Polymers Revenue EBIT • Muted performance during the first half owing to lower product off- Figs in cr. take 49 41 • Product pipeline remains strong; continue to strengthen R&D and 26 20 3 10 6 4 executional capabilities • Key growth driver for the business in coming years FY17 FY18 H1 FY1
Slide 10: 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 11: 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 12: Polyester Films
Polyester Films
Slide 13: 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 13 #56 ~35% No. of cou
Slide 14: Polyester Films Business highlights
Polyester Films Revenue EBIT • Improving sector dynamics: Demand – Supply equilibrium Figs in cr. 518 586 resulting in stable and better pricing environment 382 277 • Steady demand coupled with improved product mix and 46 59 24 51 pricing environment resulted in revenue growth of 38% FY17 FY18 H1 FY
Slide 15: 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 15 Company specific initiatives • Working towards increasing the share of value added products – ~35% by FY20 • No
Slide 16: Polyester Films – Products & Applications
Polyester Films – Products & 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 16
Slide 17: Engineering Plastics
Engineering Plastics
Slide 18: 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 18 “Fastest Growing Enterprise Improving product mix Processing (Engineering Polymers)” to improve margin at the Plastindia Exhibition in profile & retu
Slide 19: Engineering Plastics Business highlights
Engineering Plastics Revenue EBIT • Business continues to perform well, contributing steadily to the 171 145 overall revenue growth Figs in cr. 101 • Higher input prices resulted in profitability compression 81 • Working towards increasing share of high margin products in 13 13 6 5 the overall mix F
Slide 20: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications CFL Holders, Adopters & Sockets Thermoplastic Polyester Compounds MCB Case, Cover & other Parts Polybutylene Terephthalate (PBT) Applications Handles Products Knobs, Panels Polyethylene Terephthalate (PET) Switches Polyamide 6 Compounds Optical Fibre Sh
Slide 21: 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