Ester Industries Q1 FY22 revenue grows 69%; profit by 28%

All businesses have performed well, demonstrating the resilience and innate strengths of the business

Ester Industries Limited, India’s leading manufacturer of Polyester Films, Engineering Plastics and Specialty Polymers, Q1 FY22 revenue has grown by 69% to Rs. 319 crore whereas profit is up by 28% to Rs. 38 crore.    

Commenting on the performance, Arvind Singhania, Chairman, Ester Industries said, “We have started the year on a positive note with a healthy growth in topline and profitability. The performance could have been even better but for the second wave of the pandemic which disrupted operations in the early part of the quarter. All our businesses performed well, demonstrating the resilience and innate strengths of the business."

"Specialty Polymer business rebounded strongly on expected lines on the back of high demand and normalization of the business environment in customer markets (especially USA). MB-03, our marquee product, reported sharp volume growth during the quarter. Innovative PBT as well delivered Y-o-Y improvement in volume terms. The other positive development has been the commercial sales of MB07, which received final approval from customers after 3 years of rigorous hard work. We expect the volumes to grow steadily for the same over the coming quarters. Further, we also achieved techno commercial qualification for LMC03. Another innovative product namely MB16 is close to achieving techno commercial qualification. We are extremely positive on the business prospects of Specialty Polymers SBU and expect overall volumes to significantly pick up in coming years," commented Singhania.   

"Film business continued to maintain its recent growth momentum, with volumes remaining elevated. Margins though softened a bit during the quarter despite reporting a healthy top line growth. The main reason for margin compression is commissioning of two new production lines overseas. Another reason exerting pressure on demand in the short term is input cost pressure on smaller packs for snack foods. Besides benign realisation, higher proportion of chips sales that has very low margin contributed to lower margin percentage. We are working towards improving our product mix by increasing the share of value- added products and expect the business to deliver consistent growth in coming years, which will be aided in part by commissioning of our new BOPET film plant in the state of Telangana. We expect Film SBU to deliver consistent performance over the long term," said Singhania.

"Performance of Engineering plastics business in volumetric terms during the quarter was impacted in part by the second wave of pandemic. However, despite lower volume & revenues, the business reported sharp improvement in profitability owing to rising trend in base polymer prices. We expect the business to perform well over the coming quarter and contribute positively to the overall profitability of the Company. Relocation of the unit will also facilitate further improvement in operations and profitability of the business," commented Singhania.

We believe all our businesses are well positioned to deliver consistent growth in the coming years and create value for our shareholders,” added Singhania.