Ester Industries Reports 18% YoY Revenue Growth in Q1 FY25

Ester Industries Limited has announced its financial results for the quarter ended June 30, 2024.

On a standalone basis, the company achieved a revenue of ₹244 crore in Q1 FY25, marking an 18.1% increase from ₹206 crore in Q1 FY24. The net loss reduced significantly, with a loss of ₹2 crore in Q1 FY25 compared to a loss of ₹5 crore in the same quarter of the previous year.

In its consolidated performance, Ester Industries recorded a revenue of ₹292 crore in Q1 FY25, reflecting a 9.4% rise from ₹267 crore in Q1 FY24. The company also managed to narrow its consolidated net loss, reporting a loss of ₹16 crore in Q1 FY25, down from ₹22 crore in Q1 FY24.

The company highlighted that the pricing environment began to improve during the quarter, although sales in volumetric terms were lower. A key development for Ester Industries was entering into a joint venture with Loop Industries, Inc. This partnership aims to produce recycled dimethyl terephthalate (rDMT) and recycled mono-ethylene glycol (rMEG) in India using Infinite Loop™ technology. The project, with a cost of US$ 165 million, is expected to be completed by the end of 2026, with commercial operations starting in early 2027.

Furthermore, the Specialty Polymers segment saw significant growth, with revenue increasing to ₹45 crore in Q1 FY25, compared to ₹20 crore in Q1 FY24 and ₹30 crore in Q4 FY24.

Commenting on the financial performance, the Chairman of Ester Industries, Mr Arvind Singhania, said, “We have started the fiscal on a positive note. Specialty Polymer has had a strong quarter as can be seen by operating and financial performance indicators. The film business, after undergoing a challenging period over the last two years, is finally witnessing some positivity as far as the pricing & margin environment is concerned. As the demand-supply mismatch improves quarter after quarter, we are hopeful of margin & profitability improvement in times to come.”

He added, “As far as the Film business is concerned, having gone through a rough period of the last two years, especially with regards to margins, I am pleased to report that we have started to witness some respite over the past few months. The pricing and margin environment has started to improve. As a result, going forward Film SBU is likely to return better performance despite lower volumes of sales.”

“Looking ahead, given our strong position in both SBUs, we are confident of creating value for our shareholders as the fundamentals of both businesses remain solid. The joint venture with Loop is a transformative development that will pave the way for profitable growth for the company in the years to come,” stated the Chairman.

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