Ester Industries

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 Q3FY16, the company reported a 18% (YoY) drop in total income at Rs.174 crore. But EBITDA margins showed a marginal improvement, up from 6.2% to 7%. Improved operating margins were due to growing presence of specialty polymer and value added products in the overall mix. The company nevertheless ended the quarter with a net loss at Rs.3 crore v/s loss of Rs.2.5 crore in previous Q3. Equity base is pretty heavy at Rs.41.70 crore and debt stands at Rs.280 crore.