- Q2 FY22 Revenue up 33%;
- H1 Revenue grows 49%
Commenting on the performance, Mr. Arvind Singhania, Chairman, Ester Industries said: “We have had a good first half with revenues expanding 50% over the previous year. All our businesses continue to perform well, helping us sustain the growth momentum.
Specialty Polymer business delivered yet another quarter of solid performance on the back of good demand and off-take for our products. Demand for MB-03, one of our marquee products continues to remain strong, as reflected by the strong volume growth during the quarter. Innovative PBT as well maintained its momentum with a volume growth of 27% over the previous year. In addition to the existing products, demand for some of our newly introduced products like MB 07 & LMC 03 as well remain encouraging. As mentioned earlier, we expect the sales of the new products to pick up pace over the following quarters. Furthermore, we are also close to achieving techno commercial qualification for some of our other products as well, which once approved and commissioned should help us drive the revenues in the years to come.
Performance of Film business would have been better but for lower production owing to plant shut down for maintenance. Margins moderated largely owing to new capacities getting commissioned. Furthermore, higher shipping costs caused by global supply chain disruption impacted both margins and volume of export sales. Benign margin environment coupled with lower production owing to plant shut down for maintenance resulted in lower profitability during the quarter. Though the margin / profitability scenario is likely to remain subdued over short to medium term, we are working relentlessly to mitigate the same by higher volume of value added and off-line coated products. Lastly, commissioning of our new BOPET plant as well should help scale up our business in the coming years.
Engineering plastics business performed well with significant improvement in profitability. Demand from end-user customers remained buoyant which coupled with favourable pricing environment resulted in revenue growth of 51% for the quarter. We expect the business to perform well going forward as well. Eliminating the impact of increase in feedstock prices from raw material consumption and revenues from operations, the EBITDA margin for the Company would have been 24%.
We believe we are well placed to deliver growth and create value for our stakeholders.”