Ester Industries Ltd. — Earnings Release 2023

Feb 15, 2023

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Date: 15[th] February 2023

BSE Limited (BSE) Department of Corporate services Phirojee Jeejeebhoy Towers Dalal Street, Mumbai – 400023	National Stock Exchange of India Limited (NSE) Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400051
Scrip Code: 500136	Symbol: ESTER

Subject: Press Release on Financials Results for the quarter and nine months ended on 31[st] December 2022.

Dear Sir

We wish to submit the press release on financial results for the quarter and nine months ended on 31[st] December 2022.

Please acknowledge the receipt of the same.

Thanking You

Yours Faithfully

For Ester Industries Limited

PRADEEP Digitally signed by PRADEEP KUMAR KUMAR RUSTAGI Date: 2023.02.15 RUSTAGI 15:27:03 +05'30' Pradeep Kumar Rustagi Executive Director- Corporate Affairs DIN-00879345

Encls: As above

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Ester Industries reports Q3 & 9MFY23 results

Gurugram, 15[th] February 2023: Ester Industries Limited, India’s leading manufacturer of Polyester Films and Specialty Polymers, announced its financial results for the quarter and nine months ended December 31, 2022.

Particulars – Continued Operations (Rs.cr)	Q3 FY23	Q3 FY22	%	9M FY23	9M FY22	%
Revenues	196.66	288.45	(31.8)	825.17	807.15	2.2
EBITDA (includingNon-operatingincome)	6.15	46.63	(86.8)	98.37	129.32	(23.9)
Margins (%)	3.13	16.17	(1,304 bps)	11.92	16.02	(410 bps)
PAT (Continuing operations)	(8.83)	23.23	(138.0)	32.90	64.25	(48.8)
Margins (%)	(4.49)	8.05	(1,254 bps)	3.99	7.96	(397 bps)
Particulars – Discontinued Operations(Rs.cr)
PAT from discontinued operations		12.31		13.23	41.90	(68.42)
PAT from disposal of discontinued operations				114.03
Particulars– Company as a whole (Rs.cr)
PAT	(8.83)	35.54	(125)	160.16	106.15	50.88
EPS	(1.06)	4.26		19.21	12.72

Commenting on the performance, Mr. Arvind Singhania, Chairman, Ester Industries said:

“Our performance during the quarter under review has been subdued.

Specialty Polymer business during the quarter under review has faced some headwinds from recessionary concerns prevailing across its core end user market. While Q3 performance was expectedly benign, we remain confident in the business' capability to recover and regain its momentum as the global macros stabilize. Off-take for both legacy and newly established products should pick up over next couple of quarters and help us revert to the growth momentum enjoyed by the business in recent past.

Film business performance during the quarter under review was significantly impacted on account of loss of production / sales from Film Plant #3 due to a breakdown and also on account of margin compression on account of enhanced competition post commissioning of few new production lines. As has been stated earlier, operations and financial performance are expected to remain under pressure during next couple of quarters.

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We are though pleased to report that Ester Filmtech Limited (WOS of Ester Industries limited) recently started commercial operations at its new Film Plant in Telangana. We expect the same to start contributing to the company’s performance & growth in the coming years.

Despite the challenging environment, we believe we are well placed to create value for our shareholders in the coming years. Mitigation strategy is under already under implementation. While outlook over next couple of quarters is expected to remain challenging for Film business, we remain confident about company’s ability to tide over any hurdle and continue on its journey towards achieving our stated objectives. Our ability to sustain uninterrupted operations and service debt as per schedule remains unaffected as we have sufficient liquidity / cash reserves. ”

Business Highlights

• Polyester Films – Heightened / intense competition and CP & Film Plant #3 shutdown due to breakdown impacts profitability

• Sales (in both volumetric & value terms) & profitability impacted by breakdown for about a month of Continuous Polymerization plant & Film Plant #3

• Benign realisations & margins following heightened / intense competition coupled with elevated conversion cost dents Film business profitability

• Ester Filmtech Limited (Wholly owned subsidiary) starts commercial operations on 20[th] January 2023. Expect the plant to generate revenues worth ~Rs.600 crore upon achieving optimal utilization

• Specialty Polymers – Recessionary trends impact performance during Q3FY23; optimistic to regain volume as global / US economic situation starts to improve

• Recessionary trends in end user market of US impacts product offtake and profitability

• Lower profitability and margins during Q3FY23 were largely owing to lower sales & adverse product mix; 9M FY23 profitability though registered growth of 7%

• Have started to witness upturn in volume from Jan 23 onwards and expect to regain level of operations delivered during first half of FY23 as global & US economic situation improves

• The product pipeline remains encouraging with good potential to add to the revenue & profitability of the business

About Ester Industries:

Ester Industries Limited is a public limited company incorporated in 1985 promoted by the Singhania family. The company is one of India’s leading producers of Polyester Chips, Polyester Films and Specialty Polymers having a track record of continually developing new and innovative products for customers across the globe. Ester Industries has state of the art manufacturing facilities in Khatima & Sitarganj (Uttarakhand) and Hyderabad (Telangana) with the capacity of 67,000 TPA of Polyester Resin, 108,000 TPA of Polyester Film, 23,200 TPA of Metallized Polyester Film and 30,000 TPA of Specialty Polymers. The company currently exports about 30% of its production of Polyester Films with sales and distribution network in more than 50 countries across the world resulting in strong customer relationship. Specialty Polymers are manufactured primarily for the US and other overseas markets.

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For more information contact:

Pradeep Kumar Rustagi (Executive Director Corporate Affairs) Ester Industries Ltd.

Tel: +91 124 2656 100 Fax: +91 124 2656 199 E-mail: pradeep.rustagi@ester.in

Gavin Desa / Suraj Digawalekar CDR India Tel: +91 22 6645 1237 / 1219 Fax: +91 22 6645 1213 Email:gavin@cdr-india.com suraj@cdr-india.com

CIN: L24111UR1985PLC015063

Regd. Office : Sohan Nagar, P.O. Charubeta, Khatima– 262308 Distt. Udham Singh Nagar, Uttarakhand Phone: EPABX No. (05943) 250153-57; Fax No.: (05943) 250158; Email: info@ester.in; Website: www.esterindustries.com

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