Ester Industries Ltd.
Q1FY23 Quarterly Result Announced for Ester Industries Ltd.
Containers & Packaging firm Ester Industries announced Q1FY23 Result :
- Ester Industries announces Q1 FY23 results
- Revenue up 26%; EBITDA grows 13%
Commenting on the performance, Mr. Arvind Singhania, Chairman, Ester Industries said: “We have started the year on a strong note, with both our core businesses Films and Specialty Polymers registering good growth in revenue and profitability. Specialty Polymer business has not only maintained its recent growth momentum but has accelerated even further. We expect the growth momentum to continue throughout the year and onwards. Volume growth for marquee products remains encouraging. Innovative PBT has been growing significantly year after year and has seen a sharp pick up in volumes during the quarter. Due to better product mix, margins as well have picked up on a sequential basis and we expect the trend to continue over the coming quarters. Product pipeline for the business remains encouraging, offering better visibility and potential for improved performance over the coming years.
Film business delivered yet another solid performance, with improvement in volumes as well as realizations. Margins as well have expanded despite inflationary environment largely owing to better product mix and price revisions undertaken to offset the impact of rising input prices. Our sustained efforts towards increasing the share of value-added & specialty products in the overall mix have started to pay dividends, in part helping us to de-commoditize the product portfolio. While inflationary pressure and demand supply imbalance caused by commissioning of new production lines may cause margin compression in the near term, the long term prospects of the business remain strong. We are on course to commence commercial production from Telangana plant by October 22. Basis low cost of operations and proximity to markets, we expect Telangana plant to post satisfactory financial performance.
The deal for divestment of Engineering Plastics business on Slump Sale basis as a Going Concern is estimated to fructify within next 25 – 30 days. While our balance sheet is already healthy & resilient, the divestment of Engineering Plastics business will further strengthen it and provide us with the requisite growth capital to further scale up our core businesses. We believe our core businesses are well placed to deliver consistent growth and create value for our shareholders.”