Ester Industries is a leading manufacturer of polyester films and engineering plastic compounds. Its polyester films are marketed under the brand ‘UmaPET' and engineering plastics marketed under the brand ‘Estoplast’. 

Falling crude oil prices & consequential drop in feedstock (petrochemical products) prices resulted in revenue de –growth and inventory valuation losses. For Q2FY16, total income dropped 16% (YoY) at Rs.202 crore. But EBITDA rose 20% at Rs.23 crore and this was mainly on account of due higher share of Specialty Polymers in EBIT. A 19% drop in total costs and doubling of other income helped. Interest outgo was at Rs.9 crore and MAT credit of Rs.1.6 crore helped bring down the total tax outgo. YoY, net profit rose almost 4.5 times to Rs.4 crore – more or less the same on QoQ.

The company has two divisions – Polyster Chip/films and engineering plastic with the former being its mainfray. Contributing 80% to the topline, its EBIT showed a 28% rise though revenue had declined 19.5%. The performance of engineering plastic was flat with EBIT falling 4.5%. Equity base is pretty heavy at Rs.41.70 crore and debt stands at Rs.289 crore.