Ester Industries jumps 4% on strong Q1 performance

The company’s revenue grows 69%; EBITDA jumps 23%; PAT expands 28% yoy.

Aug 10, 2021 10:08 IST India Infoline News Service

Ester Industries
Ester Industries Limited, India’s leading manufacturer of Polyester Films, Engineering Plastics, and Specialty Polymers, announced its financial results for the quarter ended June 30, 2021. The company’s total revenue was at Rs319cr, an increase of 69% yoy from Rs189cr in Q1FY21. It increased 7.4% qoq from Rs297cr in Q4FY21.

EBITDA at Rs64cr, an increase of 23% yoy from Rs52cr in Q1FY21. It increased by 6.8% qoq from Rs60cr in Q4FY21. EBITDA Margin at 20.2 in Q1FY22 compared to 27.8 in Q1FY21 (760 bps).

Profit After Tax (PAT) rose 28% yoy to Rs38cr from Rs29cr in Q1FY21. It increased 11% qoq from Rs34cr in Q4FY21. PAT Margins at 11.8 from 16 in Q1FY21 (420 bps).

The company stock was bullish post quarterly earnins and at around 10.20 AM, Ester Industries Ltd is currently trading at Rs1154.35 per piece up Rs6.20 or 4.18% from its previous closing of Rs148.15 per piece on the BSE.

“We have started the year on a positive note with healthy growth in topline and profitability. The performance could have been even better but for the second wave of the pandemic which disrupted operations in the early part of the quarter. All our businesses performed well, demonstrating the resilience and innate strengths of the business.

Specialty Polymer business rebounded strongly on expected lines on the back of high demand and normalization of business environment in customer markets (especially USA). MB-03, our marquee product, reported sharp volume growth during the quarter. Innovative PBT as well delivered yoy improvement in volume terms,” Arvind Singhania, Chairman, Ester Industries, said.

The other positive development has been the commercial sales of MB07, which received final approval from customers after 3 years of rigorous hard work. We expect the volumes to grow steadily for the same over the coming quarters. Further, we also achieved techno commercial qualification for LMC03. Other innovative product namely MB16 is close to achieving techno commercial qualification. We are extremely positive on the business prospects of Specialty Polymers SBU and expect overall volumes to significantly pick up in coming years.

He further added, “Performance of Engineering plastics business in volumetric terms during the quarter was impacted in part by the second wave of pandemic. However, despite lower volume & revenues, the business reported sharp improvement in profitability owing to rising trend in base polymer prices. We expect the business to perform well over the coming quarter and contribute positively to the overall profitability of the Company. Relocation of unit will also facilitate further improvement in operations and profitability of the business.”

Business Highlights
  • Polyester Films – Volumes remain strong; low realisations impact margins o Strong demand from end – user industries help maintain volume momentum; volume growth of 21% on a yoy basis and 6% on a sequential basis
  • Specialty Polymers – Sharp rebound in the business; Expect strong performance in FY22.
  • Engineering Plastics – Profitability remains steady despite disruption in momentum caused by second wave of the pandemic.

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