Ester Industries Limited · NSE:ESTER
Ester Industries — Q4 FY2018 Earnings Presentation
26 slides from Ester Industries's earnings presentation, May 17, 2018
Slide 1: Q4 & FY18 Results Presentation
May 17, 2018 Q4 & FY18 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: Vision
INDUSTRIES LTD.
Slide 4: Vision
Vision Transform to be “R&D Focused” from “Commoditized” business Transform the existing margin profile of the business – generate high double digit margins 4 Increase the share of high margin value added products in the overall mix Rationalize cost and lower gearing ratio Generate healthy positive
Slide 5: Transformation - Road Map
Transformation - Road Map Develop high margin Increase the share of Polyester Film – value added product business in the overall Specialty weeding out the Polymers – ~2x share of value mix commodity part Patent protected added products to ~35% Ramp up sales volume business in FY20 (Product &
Slide 6: FY18 Performance Overview
FY18 Performance Overview
Slide 7: Financial Summary
Financial Summary Revenue up 15%; EBITDA expansion of 45%; PAT of Rs. 5 cr v/s loss of Rs. 11 cr (FY17) Revenues – Improving performance of Q4 FY18 FY18 dominant Film business coupled with gradual pick up in Specialty Performance resulted in Rs.cr % Rs. cr % revenue growth of 15% 7 REVENUE 220 12%
Slide 8: Business wise Financial Performance
Business wise Financial Performance Delivers improved operational performance across New & Legacy businesses Expect momentum to continue during FY19 Specialty Polymers – Gradual pick up in FY18 Performance product off-take resulted in strong revenue growth of 21% for the year. Revenues EBIT Rs.
Slide 9: Financial Highlights
Financial Highlights Revenue Growth (%) Margin Performance (%) Profitability (Rs.cr) 10.8 (+320 bps) 15% 8.8 6 (+180 bps) 12% 5 9 Q4 FY18 FY18 Q4 FY18 FY18 Q4 FY18 FY18 Improving performance of Higher revenue growth on the Improved performance of Specialty Polymers and Film back of improved product
Slide 10: Key Developments – FY18
Key Developments – FY18 Revival in Specialty Polymer business in H2 FY18 lays the foundation for better FY19 Filed patent under PCT - Modified polyester masterbatch for textile applications and manufacturing process thereof. Facilitates easy dyeability of Polyester Fibre and provides deep dyeing t
Slide 11: Chairman’s Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “FY18 has been a rewarding year for us. A year wherein our Specialty Polymer business finally started delivering performance closer to its true potential. We 11 are hopeful that the uptick in Special
Slide 12: Specialty Polymers
Specialty Polymers
Slide 13: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 7 18 High entry barriers - Patents Product Patent protected filed portfolio business (Product & process) 13 30,000MTPA ~25% - ~ 30% Production Capacity High Margin business: EBIT margin range
Slide 14: Specialty Polymers Business highlights
Specialty Polymers Revenue EBIT • Strong performance during H2 FY18; higher share of margin 49 accretive products in the overall mix resulting in EBIT 41 6 12 4 10 expansion 3 • Product pipeline remains strong; expect strong performance -2 in FY19 Q4 FY17 Q4 FY18 FY17 FY18 14 Product portfolio -18
Slide 15: 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 16: 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 17: Polyester Films
Polyester Films
Slide 18: 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 18 #75 ~35% No. of cou
Slide 19: Polyester Films Business highlights
Polyester Films Revenue EBIT • Improving fundamentals: Demand – Supply equilibrium contributed positively to the business 518 586 • Higher share of margin accretive products in the overall mix 149 162 resulting in EBIT expansion 15 20 46 59 • Expect momentum to continue in FY19 Q4 FY17 Q4 FY18 FY17
Slide 20: 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 20 Company specific initiatives • Working towards increasing the share of value added products – ~35% by FY20 • No
Slide 21: 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 21
Slide 22: Engineering Plastics
Engineering Plastics
Slide 23: 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 23 “Fastest Growing Enterprise Improving product mix Processing (Engineering Polymers)” to improve margin at the Plastindia Exhibition in profile & retu
Slide 24: Engineering Plastics Business highlights
Engineering Plastics Revenue EBIT • Business continued to perform well on the back of steady 171 145 demand • Working towards increasing share of high margin products in 42 46 the overall mix 4 3 13 13 • Expect steady performance to continue during FY19 Q4 FY17 Q4 FY18 FY17 FY18 24 Business highligh
Slide 25: 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 26: 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