India’s Ester Industries Reports 28.1% YoY Net Profit Growth in Q1FY21-22

Ester Industries Ltd., a polymers manufacturer based in India announced its results for the first quarter ended June 30, 2021.

Q1 Results- QoQ

The company’s net profit grew 11.04% to Rs 37.62 crores ($5.1 million) for the period ended June 30, 2021 as against net profit of Rs 33.88 crores ($4.6 million) for the previous quarter.

Net sales increased 7.5% to Rs 320.98 crores ($43.1 million) during the period ended June 30, 2021 as compared to Rs 298.61 crores ($40.1 million) during the previous quarter.

Q1 Results- YoY

The company’s net profit grew 28.1% to Rs 37.62 crores ($5.1 million) for the period ended June 30, 2021 as against net profit of Rs 29.38 crores ($3.9 million) for the prior-year quarter.

Net sales increased 69% to Rs 320.98 crores ($43.1 million) during the period ended June 30, 2021 as compared to Rs 190.43 crores ($25.6 million) during the prior-year quarter.

Business Highlights

  • Polyester Films – Volumes remain strong; low realisations impact margins o Strong demand from end – user industries help maintain volume momentum; volume growth of 21% on a yoy basis and 6% on a sequential basis
  • Specialty Polymers – Sharp rebound in the business; Expect strong performance in FY22.
  • Engineering Plastics – Profitability remains steady despite disruption in momentum caused by second wave of the pandemic.

“We have started the year on a positive note with 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 business environment in customer markets (especially USA). MB-03, our marquee product, reported sharp volume growth during the quarter. Innovative PBT as well delivered yoy improvement in volume terms,” Arvind Singhania, Chairman, Ester Industries, said.

Ester Industries Ltd is engaged in the business of manufacture and selling of Polyester Films, Polyster Chips, Specialty Polymers and Engineering Plastic compounds.