Any current/future new fundraising through debt or equity?

Ester Industries has planned a CAPEX of about $165 million for the joint venture with Loop Industries. Funding for this CAPEX is expected at a 60-40 equity-debt ratio (or possibly 70-30 outside funding). Equity portion is estimated at $66 million, to be shared equally (50-50) between Ester and Loop. The remaining ~$100 million is planned to be raised as debt in the joint venture company. No other specific new fundraising through debt or equity was mentioned for the standalone or subsidiary companies in the current call. The equity infusion of Rs. 99.90 crore by promoters and others in March 20

Any current/future capex/capital investment/strategic investment?

Ester Industries has a planned CAPEX of about $165 million. Funding for this CAPEX is targeted at a 60:40 debt-to-equity ratio (could be 70:30 externally). Equity portion (~$66 million) will be shared equally between Ester and Loop (joint venture partner). Debt portion (~$100 million) will be raised by the joint venture company. The joint venture with Loop Industries is progressing as scheduled, aiming to break ground in Q1 Calendar Year 2025 and start commercial operations in the first half of 2027. This JV is expected to be a transformative growth driver and significantly enhance the company

Future growth expectations in sales/revenue/volumes?

Specialty Polymer business expects 20%-25% annualized CAGR growth with revenues around Rs. 200 crore in FY25 and potential to double in 3 years (~Rs. 400 crore by FY27), maintaining high EBIT margins (~40%+). Ester Filmtech Limited aims to increase revenue from Rs. 81 crore in Q1 FY25 to Rs. 450-500 crore by FY26 upon optimum utilization. Film business volumes expected to improve as demand-supply mismatch narrows; capacity utilization projected at 75%-80% for the year. Value-added and specialty films share targeted to grow from 30% to 40% by FY26, supporting better spreads and margins. Domesti

Future growth expectations in earnings/operating earnings/profits/EPS?

Specialty Polymer business expects 20%-25% annualized CAGR growth with EBIT margins around 40%, targeting approximately Rs. 200 crore revenue in FY25 and potentially doubling to ~Rs. 400 crore in 2-3 years. Film business is recovering; improving pricing and margin trends expected to yield positive EBITDA in coming quarters. Value-added products share targeted to increase from 30% to 40% by FY26, aiding margin expansion. Ester Filmtech aims to achieve Rs. 450-500 crore revenues by FY26 with 75%-80% capacity utilization, turning positive contribution to overall growth. Demand-supply gap na

IN US

Sale is live|00:00:00left today

Ester Industries LtdQ2 FY24Industrial Products

Ester Industries Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹91.9Market Cap: ₹954 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Specialty Polymer business expects 20%-25% annualized CAGR growth with revenues around Rs. 200 crore in FY25 and potential to double in 3 years (~Rs. 400 crore by FY27), maintaining high EBIT margins (~40%+).
→Ester Filmtech Limited aims to increase revenue from Rs. 81 crore in Q1 FY25 to Rs. 450-500 crore by FY26 upon optimum utilization.
→Film business volumes expected to improve as demand-supply mismatch narrows; capacity utilization projected at 75%-80% for the year.
→Value-added and specialty films share targeted to grow from 30% to 40% by FY26, supporting better spreads and margins.
→Domestic demand growth of flexible packaging driven mainly by FMCG sector, supporting steady volume growth.
→New JV with Loop Industries, starting operations by first half of 2027, expected to significantly enhance growth and profitability.
→Overall, gradual improvement in pricing and demand signals a positive growth trajectory for sales, revenues, and volumes over the next 2-3 years.

Margin guidance

Category 1

→Specialty Polymer business expects 20%-25% annualized CAGR growth with EBIT margins around 40%, targeting approximately Rs. 200 crore revenue in FY25 and potentially doubling to ~Rs. 400 crore in 2-3 years.
→Film business is recovering; improving pricing and margin trends expected to yield positive EBITDA in coming quarters. Value-added products share targeted to increase from 30% to 40% by FY26, aiding margin expansion.
→Ester Filmtech aims to achieve Rs. 450-500 crore revenues by FY26 with 75%-80% capacity utilization, turning positive contribution to overall growth.
→Demand-supply gap narrowing leads to expected spread improvements from Q2 and Q3 FY25, boosting profitability.
→New JV with Loop Industries, starting commercial operations by H1 CY27, is expected to be a transformational growth and profitability driver.
→Overall, company confident of sustained growth in revenues, margins, and EPS with improved industry dynamics and product mix.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→Ester Industries has planned a CAPEX of about $165 million for the joint venture with Loop Industries.
→Funding for this CAPEX is expected at a 60-40 equity-debt ratio (or possibly 70-30 outside funding).
→Equity portion is estimated at $66 million, to be shared equally (50-50) between Ester and Loop.
→The remaining ~$100 million is planned to be raised as debt in the joint venture company.
→No other specific new fundraising through debt or equity was mentioned for the standalone or subsidiary companies in the current call.
→The equity infusion of Rs. 99.90 crore by promoters and others in March 2024 has already improved liquidity for Ester Industries.

Order book

The transcript does not explicitly mention details about the current or expected order book or pending orders for Ester Industries. However, relevant insights include: - The company reports improving demand and pricing environment, especially in the Film business, with narrowing demand-supply gap. - Export demand for specialty and value-added films is strong, with exports having better spreads and margins compared to domestic sales. - The Polymer business is growing steadily with plans to achieve around Rs. 200 crore revenue in FY25. - The joint venture with Loop Industries is progressing on schedule, expected to begin commercial production by first half of 2027, which may contribute significant orders in the future. - No specific figures or details on order book or pending orders were disclosed during the Q1 FY25 earnings call. Therefore, no concrete data on the current or expected order book or pending orders is available in the transcript.

Capex plans

Yes

→Ester Industries has a planned CAPEX of about $165 million.
→Funding for this CAPEX is targeted at a 60:40 debt-to-equity ratio (could be 70:30 externally).
→Equity portion (~$66 million) will be shared equally between Ester and Loop (joint venture partner).
→Debt portion (~$100 million) will be raised by the joint venture company.
→The joint venture with Loop Industries is progressing as scheduled, aiming to break ground in Q1 Calendar Year 2025 and start commercial operations in the first half of 2027.
→This JV is expected to be a transformative growth driver and significantly enhance the company’s profitability profile.
→There are also new capacity additions: one BOPET line starting in the next 2–3 months and another line expected in 2025; further expansions are planned in 2027.

How does Ester Industries Ltd rank vs peers in Industrial Products?

Pro feature

1Ester Industries Ltd

Rev 2Mar 1

See full Industrial Products sector rankings

Want more stocks like Ester Industries Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio