Ester Industries Limited · NSE:ESTER
Ester Industries — Q1 FY25 Earnings Presentation
34 slides from Ester Industries's earnings presentation, Aug 12, 2024
Slide 1: Exchange cover letter for investor presentation
Date: 12th August, 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
Slide 2: Investor Presentation August 2024
ESTES tor Presentation INDUSTRIES LTD. August 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, Q1 FY25 Results Highlights, Key Developments
About Us Q1 FY25 Results Highlights Key Developments – JV with Loop Industries Inc 3
Slide 5: Diversified business portfolio and sales mix
Diversified business portfolio Sales Mix (Q1FY25) Comprehensive product suite Polyester Chips & Films Segment 81% State-of-the-art manufacturing facilities Global footprint Specialty Experienced management team Polymers Segment 19% Healthy financial Position 4
Slide 6: Company key facts
1985 GURGAON, INDIA #2 Year of Incorporation Corporate Headquarters Business Segments* 522 – EIL - KHATIMA, About 50 COUNTRIES SITARGANJ, GURGAON CRISIL A - (Industry Outlook – Negative) 149 – EFL – HYDERABAD, GURGAON Global Footprint Permanent Employees Credit Rating (Long Term) PF - Polyester Film
Slide 7: Manufacturing locations: Sitarganj, Khatima, Gurgaon, Telangana
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: Results Overview
“Y25 e Overview
Slide 10: Standalone results Q1 FY25
Particulars (Rs.cr) Q1 FY25 Q1 FY24 % Q4 FY24 % Total Income 244 206 18.1 220 11 EBITDA (including Non operating income) 17 13 35.3 9 89 Margins (%) 6.9 6.1 +80 bps 4.0 +290 bps PAT (2) (5) - (9) - Margins (%) - - - - Improved performance underpinned by sharp pick up in Specialty Polymer business
Slide 11: Consolidated results Q1 FY25
Particulars – (Rs.cr) Q1 FY25 Q1 FY24 % Q4 FY24 % Total Income 292 267 9.4 280 4.3 EBITDA (including Non operating income) 17 10 70 9 88.9 Margins (%) 5.9 3.6 +230 bps 3 +290 bps PAT (16) (22) - (24) - Margins (%) - - - - - Specialty Polymers’ contribution in total income: Rs. 45 crore in Q1FY25 a
Slide 12: Chairman's comments on the results
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said: “We have started the fiscal on a positive note. Specialty Polymer has had a strong quarter as can be seen by operating and financial performance indicators. Film business after undergoing challenging period of last two
Slide 13: Specialty Polymer
INDUSTRIES LTD. Specialty Polymer
Slide 14: 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 13
Slide 15: Business opportunity: stain resistant carpet master batch
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 16: 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 Q1 Q1 Q4 infrastructure to manufacture the product FY25 FY24 FY24 • Innovative PBT being man
Slide 17: 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 18: Specialty Polymers results and volumes
Figs. in cr Q1 Q1 Volumes (MT) Particulars % Q4 FY24 % FY25 FY24 Q1FY24 Q1FY25 Sales 982 526 86.7 853 15.1 (Vol's MT) Revenue 46 20 130.0 32 43.8 79 Innovative PBT EBIT 20 7 185.7 9.1 119.8 301 Margins (%) 42.9 33.3 +960 bps 28.5 +1,440 bps Strong start to the fiscal underpinned by higher volumes,
Slide 19: Packaging (BOPET) Film Business
ESTER INDUS Uo. Packaging (BOPET) Film Business 18
Slide 20: Global and domestic 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 21: Film business capacities and experience
108,000 23,200 #36 MTPA MTPA Years of experience Polyester Film capacity Metallized Polyester Film capacity (including Telangana capacity) (including Telangana capacity) About 67,000 Telangana 50 30% MTPA Plant Export market Share of value-added Polyethylene Terephthalate Commercial production (# of
Slide 22: Product mix toward value added and specialty products
Value Added (%) *Film & Chips Segment Domestic Exports 28 30 20% 19% 20% 25 24 (Rs.cr) Q2FY24 Q3FY24 Q4FY24 Q1FY25 38% EBIT -1.25 -3.3 0.3 0.4 80% 81% 80% 62% Margins (%) -0.6 -1.9 0.1 0.2 Q2FY24 Q3FY24 Q4FY24 Q4FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Pass through business model for raw material prices Pro
Slide 23: Film 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 22
Slide 24: Film and chips results Q1 FY25
Figs. in cr Particulars Q1 FY25 Q1 FY24 % Q4 FY24 % Sales (Vol’s MT) 11,226 12,462 (9.9) 13,048 (13.9) Revenue 194 178 8.9 184 5.4 EBIT 0.4 4 (90.0) 0.3 33.3 Margins (%) 0.2 2.4 (220 bps) 0.13 7 bps Shutting down of Film production Line # 1 & 2 for few weeks during the quarter on account of commer
Slide 25: Ester Filmtech Telangana plant update
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.81 crore and volumes of 6,501 MT during Q1FY25 Better prici
Slide 26: Ester Filmtech financials
Particulars – (Rs.cr) Q1FY25 Q1FY24 FY24 Sales Volume (MT) 6501 5760 25626 Net Sales 77.4 63 277 Other Operating Income 1.1 0.4 2.3 EBITDA (1.7) (4.2) (21.3) Other Non-Operating Income 2.5 1.2 1.8 Cash Profit (7.5) (10.5) (52.5) PBT (13.7) (16.8) (77.7) PAT (13.7) (16.8) (77.7) 25
Slide 27: Loop Industries JV
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Slide 28: JV with Loop Industries for rDMT and rMEG
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 Th
Slide 29: Loop 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 30: JV project capacity, capex and returns
Output Products & Capacity: rDMT 70,000 MTPA; rMEG of 23,000 MTPA Estimated project capital expenditures: USD 165 Mn (Rs. 1,385 crore) Estimated Plant revenues: USD 159 Mn Rs. 1,336 crore (first full year of operation) Target EBITDA margins: ~35% Payback period: ~5 years JV Company by the name ‘Este
Slide 31: Regulations driving recycled plastic demand
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 32: 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 31
Slide 33: About Us
About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL), a public limited company, is an ISO 50001:2018, ISO 45001:2018, ISO 14001:2015 and ISO 9001:2015 certified. Company is promoted by the Singhania family. The company is one of India’s leading producers of P
Slide 34: Thank You
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