Q1 2025 Ester Industries Ltd Earnings Call Transcript
Key Points
- Specialty polymer business saw sharp growth both year-on-year and quarter-on-quarter, with Q1 revenues of INR45 crores and an EBIT margin of 43%.
- Film business has started witnessing positivity in terms of pricing and margins after undergoing challenges over the last 24 months.
- Ester Filmtech generated revenues of INR81 crores with volumes of 6,501 metric tonnes during the quarter.
- The joint venture with Loop Industries is progressing as per schedule, with commercial production expected to commence in the first half of 2027.
- The company expects robust growth in domestic and global demand, leading to improvement in margins and profitability for both Ester Industries and Ester Filmtech.
- Lower volume growth in the film business during the quarter due to the shutdown of film production lines for maintenance.
- Despite improvements, the demand-supply gap in the film business still persists.
- The business incurred a loss of INR2 crores during the quarter, although this was an improvement from the INR5 crores loss in Q1 FY24.
- Gross term debt and net term debt in the books of Ester Industries Limited stood at INR180 crores and INR92 crores, respectively, indicating significant leverage.
- The company faces challenges from significant oversupply in the market caused by the bunching of new capacities over the past two years.
Ladies and gentlemen, good day, and welcome to the Ester Industries Limited Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Gavin Desa from CDR India. Thank you, and over to you, sir.
Thank you. Good day, everyone and a warm welcome to Ester Industries Q1 FY25 analyst and investor conference call. We have with us today Mr. Arvind Singhania, the Chairman and CEO; Mr. Pradeep Kumar Rustagi, the Executive Director of Corporate Affairs; Mr. Girish Behal, Business Head of SBU; and Mr. Sourabh Agarwal, Chief Financial Officer. We will begin this call with opening remarks from the management following which we will have the floor open for an interactive Q&A session.
Before we begin, I would like to point out that some statements made in today's discussions may be forward-looking in nature, and a note to this effect has been sent to you in the invite earlier. We trust you have had a chance to go through
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