Slide 1: Q1 FY20 Results Presentation
August 13, 2019 Q1 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: Q1 FY20 Performance Overview
Q1 FY20 Performance Overview
Slide 4: Financial Summary
Financial Summary Revenue from operations up 25%; EBITDA jumps 2x to Rs. 54 cr; PAT grows ~3.25x to Rs. 24 cr Q1 FY20 Q1 FY19 Favorable operating environment for films enables continued progressive performance. Encouraging order flow for specialty 284 227 Revenues polymer too drives growth 4 Figs
Slide 5: Debt rationalization
Debt rationalization Outstanding interest bearing external term debt of Rs. 73 cr as on 30th June 2019 including Rs. 3 cr disbursed out of a fresh sanctioned TL of Rs. 16 cr. Balance Rs. 13 cr will be disbursed by 31st March 2020 Repayment Schedule (including fresh term loan of Rs 16 cr) FY20
Slide 6: Business wise Financial Performance
Business wise Financial Performance Specialty Polymer and Film business performs well – delivering majority of the revenue and profitability growth Expect momentum in Specialty business to continue on the back of visible demand Figs in cr. Polyester Films – Revenue growth of 28% was driven by vo
Slide 7: Chairman’s Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have started the year on a positive note with healthy revenue growth of 25% over corresponding quarter last year and improvement in PAT by 2.25 fold on the back of strong performance from our Spe
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) 9 30,000MTPA 20%+ Production Capacity Margins on achieving of adequate scale of operations
Slide 10: Specialty Polymers Business highlights
Specialty Polymers Revenue EBIT • Strong start to the year – 2x revenue growth during the Qtr. (Y-o-Y) 30 Figs in cr. • Higher off-take of products; especially MB03 drove bulk of the 16 quarterly growth 8 6 1 1 • Margin expansion on the back of high operating leverage FY19 Q1FY19 Q1FY20 • Expect bus
Slide 11: Expect business momentum to continue in FY20
Expect business momentum to continue in 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 conse
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 filed in Approved Packaging India, Europe ESPET MB-03 Masterbatch Sulfonated PET Granted in USA and filed in Approved Stain Resistance
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 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 15 #56 ~30% Cost reduc
Slide 16: Polyester Films Business highlights
Polyester Films Revenue EBIT • Steady performance highlighted by 28% growth in revenue and ~2x growth 803 in EBIT for the Qtr. (Y-o-Y) Figs in cr. • While volumes & realisations remained strong during the quarter, likely additional supply may soften prices over the coming quarters 177 226 120 • Effo
Slide 17: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics • Market size of Domestic BOPET films ~440000 - ~450000 tpa • Domestic demand growing at 10%-12% • Expect market to absorb with some disruption the incremental supply (70,000 tpa) expected to hit the market during the year 17 Company spec
Slide 18: 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 19: Engineering Plastics
ESTER INDUSTRIES LTD. Engineering Plastics
Slide 20: 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 20 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling costs to improve at
Slide 21: Engineering Plastics Business highlights
Engineering Plastics Revenue EBIT • Business environment continues to remain challenging - Slowdown in Auto & Electric sectors impacted demand and margins for the SBU Figs in cr. 195 • Working towards increasing share of high margin products in the overall mix 42 42 8 3 1 FY19 Q1FY19 Q1FY20 21 Busin
Slide 22: 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 23: 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