Polyester Film manufacturer Ester Industries today reported a whopping 535 per cent increase in net profit to Rs 36.71 crore for the quarter ended September 30, on increased sales and better price realisations.
"There are a couple of reasons for higher net. First, the price. The price of polyester film has more than doubled to $4.5 per kg during the quarter from just $2 in last June. On increased demand, sales also rose," company Chairman and Managing Director Arvind Singhania told PTI.
A slew of "long-term, sustainable" cost cutting measures and focus on value-added products also yielded better results, he added.
Ester Industries had reported just Rs 5.78 crore net profit in the corresponding quarter ended September 2009.
Net sales of the company increased by 52 per cent during the quarter to Rs 147.25 crore from Rs. 97.11 crore in the corresponding quarter last year.
Polyester film, used for flexible packaging, is a three lakh tonnes per annum market in India and has been growing at a Compounded Annual Growth Rate of 15 per cent for the last few years. The market is ruled predominantly by organised players.
In Uttarakhand, Ester has a 30,000 TPA polyester making facility, the capacity of which is being doubled with a spend of Rs 240 crore. The extended facility will go on stream by the end of current month, Singhania said.
Ester Industries now generates 30 per cent of its revenue from exports, which should go up to at least 40 per cent with the commissioning of the extended facility, he added.
