Ester Industries Ltd registered a solid jump in quarterly as well as annual profits while its sales dipped marginally during the last quarter. 

 

For the full year, the company's net profit rose 219.83% to Rs 99.50 crore as against Rs 31.11 crore in 2019. Sales rose 1.03% to Rs 1038.70 crore versus Rs 1028.06 crore during the previous year.

 

In Q4FY20, the net profit rose 358.51% to Rs 36.91 crore as against Rs 8.05 crore during the corresponding quarter of the previous year. Sales declined 0.46% to Rs 253.87 crore versus Rs 255.05 crore in 2019.

 

Commenting on the results, Arvind Singhania, Chairman, Ester Industries said “Despite nationwide lockdown due to Covid-19 pandemic at the end of the year, we have reported a strong financial performance during the fiscal. The profitability growth was largely driven by robust performance of our Film & Specialty Polymers businesses.

 

Specialty Polymer business has had one of its best performances till date on the back of good demand and consistent product off-take. Performance of both MB03 and innovative PBT showed marked improvement over the previous year. While Covid – 19 may have moderated growth momentum for a few months, we are confident of catching up soon, as business fundamentals continue to be structurally strong. We are also confident of even better prospects & outlook for the business going forward on the back of certain high margin products under development.

 

Film business continued to perform well on the back of increasing volumes and realizations. A strong demand from our International clients also contributed to the overall growth of the business. Through various initiatives, we were able to enhance productivity on sustainable basis by about 11%. In addition to enhanced production, improved margins have contributed towards significantly improved profitability of the SBU. We are continuously taking initiatives to further enhance productivity over the coming years. Further our attempts towards improving the product mix by increasing the share of value added products should help us maintain the momentum.

 

As regards Engineering Plastics SBU, though performance during FY 20 is better than FY 19, the business continues to face challenges that are aggravated by Covid – 19 outbreak, primarily on account of slowdown in the auto as well as electrical & electronic sectors. This SBU is likely to face challenges in the near term amidst Covid – 19 pandemic in terms of lower volume off – take. We are nonetheless undertaking steps towards reviving the business. We do not expect return to normalcy before second half of the current financial year.

 

Given enhanced demand for packaged food & other items, there is a need to enhance capacity in Film SBU. Due to uncertainties created by Covid – 19, we had put on hold the implementation of expansion announced in March 2020, but active steps are now being taken to begin the implementation of this project. We continue to repose confidence in the potential and resilience of the business. ”