Ester Industries, India’s leading manufacturer of Polyester Films, Engineering Plastics and Specialty Polymers, Q4 FY22 revenue reached Rs. 388 crore, registering a growth of 30.6% whereas profit was Rs. 33 crore down by 2.9%. 

Commenting on the performance, Arvind Singhania, Chairman, Ester Industries said, “We have ended the year on a strong note with Q4 delivering a revenue growth in excess of 30%, driven by strong sales momentum across our businesses. Specialty Polymer business returned stellar performance during the year with a strong revenue and profitability growth. Product off-take for both our marquee legacy products remained robust, indicative of the strong underlying demand. Potential for the newly introduced products remains strong as well. Sales of Innovative PBT picked up during the quarter on expected lines, following a soft Q3 and we expect the trend to continue in the coming years as well. MB-03 registered a healthy volume growth during the quarter & the year and should drive the business’ performance in the near term. Margins in percentage terms are lower due to the denominator effect. Product pipeline for the business remains strong and we expect the momentum to continue in FY 23 as well."

"Film business performed well during the year with revenue growth of around 30% both for the quarter as well as the year. While volumes for the quarter were slightly lower, improved realizations coupled with better product mix helped improve the profitability and margins. The improved product mix is largely owing to our conscious attempt towards scaling up the share of value-added products in the overall mix," commented Singhania.

Implementation of the Telangana project is progressing as per schedule and should result in scaling up our revenues and profitability post commencement of commercial production in October 2022 said Singhania.

"As regards the Engineering Plastics business, we are witnessing gradual rationalisation of margins which had reached extraordinary/unprecedented levels in Q4 FY21 & Q1 FY22 quarters. The margins in the Engineering Plastics business were lower during Q4 FY22 despite revenue growth of 9% over the Q4FY21. We have decided to sell the business to Radici Plastics India Private Limited to enable us to concentrate our focus on core businesses of Films and Specialty Polymers. The proceeds from the sale will not only help us strengthen our balance sheet but also provide us the growth capital for scaling up capacities in our core businesses. Going forward, we believe we are well placed to deliver significant growth and create value for our shareholders going forward,” added Singhania.

Polyester Films has delivered a strong revenue growth of 31%. Improved product mix and better realisations resulted in a strong revenue growth for Specialty Polymers.

The Engineering Plastics has entered into Business Transfer Agreement to Radici Plastics India Private Limited to divest the Engineering Plastics business not considered as Core business by the management. Proceeds from the transaction not only results in a stronger balance sheet but also provide the requisite growth capital for scaling up the core businesses of the company.