Ester Industries Limited · NSE:ESTER
Ester Industries — Q4 FY2017 Earnings Presentation
22 slides from Ester Industries's earnings presentation, Jun 2, 2017
Slide 1: Q4 & FY17 Results Presentation
Q4 & FY17 Results Presentation June 2, 2017
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 cause actual resu
Slide 3: FY17 - Highlights
FY17 - Highlights FY17 – Challenging year with multiple Business outlook headwinds; outlook though remains positive o Specialty Polymer business – • Innovative and exciting product pipeline – some of which are Product pipeline for Specialty Polymer at various stages of approvals and commercializ
Slide 4: Key Developments
Key Developments Patent filing under PCT for Master Batch to To set up a world class R & D and produce Speciality polyester yarn Innovation complex at Gurgaon – • Filed a patent for Master Batch to produce • Plans to set up R&D and Innovation complex at specialized polyester yarn - The Master batch
Slide 5: Performance Update
Performance Update Reduction in EBITDA Reasons for reduction in margins mainly a sales value are primarily result of: two namely (a) No chips sales as compared to Revenue EBITDA • Lower proportion of sales of Rs. 20.28 crores high margin Specialty during FY 2015-16, (b) Polymer business; Specialty P
Slide 6: Business Wise - Revenue Contribution
Business Wise - Revenue Contribution Q4 FY17 Q4 FY16 4% 11% 21% 23% 66% 75% FY17 FY16 6% 9% 20% 20% 71% 74% 6 PF – Polyester Films; EP – Engineering Plastics; SP – Specialty Polymers
Slide 7: Business Performance (Rs. cr)
Business Performance…….. (Rs. cr) Shift taking more than anticipated Revenue EBIT time. Outlook 67 remains positive 12 Specialty 43 4 5 Polymers 19 8 8 0 0 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Focus on cost efficiencies & value Revenue EBIT enhancement translating to P
Slide 8: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said ”FY17 has been a learning year for us, a year wherein the performance of all our businesses remained relatively soft. While the anticipated pick-up in specialty polymer business eluded us, we remain
Slide 9: Specialty Polymers
Specialty Polymers
Slide 10: New products in evaluation stages
New products in evaluation stages: ESPET MB 06 R3 (PET Master Batch for imparting ESPET MB 07 R7 (PET Master Batch for imparting easy cationic dyeability) dyeability using disperse dyes): Used for PSF/ PFY/ BCF applications Used for PFY/PSF/BCF applications Differential dyeing Different fabr
Slide 11: Specialty Polymers
Specialty Polymers Product portfolio - 18 products at various stages of Particulars Q4 Q4 % FY17 FY16 % development of which patents have been filed in (Rs cr) FY17 FY16 respect of 9 Revenues 7.82 19.30 -59.45 42.65 66.82 -36.17 High entry barriers protected by Intellectual EBIT -1.96 3.50 2.85
Slide 12: Specialty Polymers - Products & Applications
Specialty Polymers – Products & Applications Polyethylene Terephthalate (PET) Products Polybutylene Terephthalate (PBT) Polyethylene Naphthalate (PEN) Master Batches Rigid Packaging – Hot-fill / Beer Kegs Textile – Flame Retardant Applications Carpets – Stain Resistant Master Batches Heat Sealable E
Slide 13: Polyester Films
Polyester Films
Slide 14: Polyester Films
Polyester Films Manufactures and markets polyester films under the brand “UmaPET” Particulars Q4 Q4 % FY17 FY16 % Manufacturing capacity - 57,000 MTPA for polyester films & 13,200 (Rs cr) FY17 FY16 MTPA for metalized polyester films Revenues 149.9 122.8 22.12 519.4 548.9 -5.36 Integrated playe
Slide 15: Polyester Films - Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Products High Barrier Embossable Heat Saleable Twist Wrap Shrink film Anti - Static Metalized High Barrier Matte Flexible Packaging Applications Barrier Packaging Embossing Lidding Label & Graphics 15
Slide 16: Engineering Plastics
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Slide 17: Engineering Plastics - Products & Applications
Engineering Plastics – Products & Applications A well regarded manufacturer of Engineering Particulars Q4 Q4 plastics (Rs cr) FY17 FY16 % FY17 FY16 % Diverse Product Portfolio – 350+ grades Revenues 42.31 41.40 2.21 144.81 155.15 -6.67 products marketed under the brand “ESTOPLAST” EBIT 4.49 5.11
Slide 18: Engineering Plastics - Products & Applications
Engineering Plastics – Products & Applications Thermoplastic Polyester Compounds Polybutylene Terephthalate (PBT) Products Polyethylene Terephthalate (PET) Polyamide 6 Compounds Polyamide 6.6 Compounds CFL Holders, Adopters & Sockets MCB Case, Cover & other Parts Applications Handles Knobs, Panels S
Slide 19: Strategic shift - The new Ester
Strategic shift – The new Ester
Slide 20: New ESTER
Knowledge New Innovation ESTER Customization Technology
Slide 21: Business Transformation - "Commodity" to "Technology"
Business Transformation – “Commodity” to “Technology” New Product Value Addition Technology Innovation Customisation Development Past Present Future One amongst many in the Transforming from a Aiming to be a Technology Polyester Film and “commodity” to “technology” driven enterprise Engineerin
Slide 22: Investor Contacts
Investor Contacts About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of polyester films, specialty polymers, engineering plastics and polyester chips with manufactu