Containers & Packaging company Ester Industries announced Q3FY25 results Revenues: Rs 351 crore compared to Rs 272 crore during Q3FY24, change 29%. EBITDA: Rs 65 crore compared to Rs -15 crore during Q3FY24. EBITDA margin: 18.5% for Q3FY25. PAT: Rs 25 crore compared to Rs -45 crore during Q3FY24. Arvind Singhania, Chairman, Ester Industries, said: “We are pleased to report that we have not only sustained the business momentum from previous quarter but have further accelerated it during Q3 as can be seen from the revenues and profitability growth. While both our businesses performed well, the films business in particular delivered a healthy performance. Specialty Polymer business as well registered healthy growth on a YoY basis. Specialty Polymer, on YoY basis, registered a healthy revenue growth of 55% during the quarter driven by steady traction for our marquee products MB03 and Innovative PBT. We expect this positive business trajectory to continue in the coming years, underpinned by a robust product pipeline and a strong competitive edge due to the absence of competition in the sector. As far as Film business is concerned, we have seen a sharp improvement in the margin profile and profitability of the business during the quarter. While the volumes continued to remain elevated, increased contribution from exports of high margin Value Added products aided the overall profitability of the business. Exports volumes registered a strong growth of 27% during the quarter. During the 9 months ending Dec 24, the proportion of Value-Added products increased from 18% (9MFY24) to 26%. Various initiatives to transform Ester from a commodity to specialty film player are being pursued diligently. We expect profitability improvement to sustain over the coming years on the back of better product mix i.e. share of high margin business and operating leverage Furthermore, the introduction of the Plastic Waste Management Rules (PWMR), which will require a minimum of 10% recycled content in flexible packaging laminate expected to be effective from next year, is likely to further stimulate demand for Polyester Film as conversions from alternative substrates to polyester take place. I am pleased to report that the execution of our joint venture plans with Loop Industries is advancing according to the established timeline. We are diligently pursuing various activities related to the project's implementation Looking ahead, our strong position in both Strategic Business Units (SBUs) gives us confidence in our ability to create value for our shareholders, particularly in light of the robust fundamentals of each business” Result PDF
Containers & Packaging company Ester Industries announced Q1FY25 results: Revenues: Rs 292 crore, up 9.4% YoY and up 4.3% QoQ. EBITDA (including Non-operating income): Rs 17 crore, up 70.0% YoY and up 88.9% QoQ. EBITDA Margin: 5.9%, an increase of 230 basis points YoY and 290 basis points QoQ. PAT (Continuing Operations): Rs -16 crore, an improvement from Rs -22 crore YoY and Rs -24 crore QoQ. Commenting on the performance, 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 years, is finally witnessing some positivity as far as pricing & margin environment is concerned. As the demand-supply mismatch improves quarter after quarter, we are hopeful of margin & profitability improvement in times to come. Specialty Polymer performed well both on a Y-o-Y and Q-o-Q basis. Q1 performance was largely driven by good volume off-take of our marquee products MB03 and Innovative PBT. Higher share of value-added products resulted in improved margins and profitability. We expect the momentum to not only sustain but accelerate further throughout the year. As I have emphasized earlier, this business is protected by intellectual property, which safeguards our margins and preserves profitability. We continue to work towards building a healthy product pipeline and expect positive contributions from some of them over the coming years. As far as Film business is concerned, having gone through a rough period of last two years especially with regards to margins, I am pleased to report that we have started to witness some respite over the past few months. The pricing and margin environment has started to improve. As a result, going forward Film SBU is likely to return better performance despite lower volumes of sales. The proportion of Value Added & Specialty products stood at 30% during the quarter under review and with a targeted increase to 40% by FY26, profitability is expected to get further boost. Plastic Waste Management Rules (PWMR) mandating utilization of 10% recycled content in flexible packaging laminate, coming into force from 1 st April 2025 will further increase demand for Polyester Film with conversion taking place from other substrates to polyester. As regards our JV with Loop Industries Inc, I am happy to announce that it is progressing as per schedule. Various activities towards implementation of the project are being pursued in right earnest. Looking ahead, given our strong position in both SBUs, we are confident of creating value for our shareholders, as the fundamentals of both businesses remain solid. The joint venture with Loop is a transformative development that will pave the way for profitable growth for the company in the years to come.” Result PDF
Conference Call with Ester Industries Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.