UFlex Ltd, multinational firm into flexible packaging solutions and a leader in polymer sciences, announced its business performance results for the quarter ending September 30, 2021.
The company posted consolidated EBITDA at 424.5 crores for the second quarter of Financial Year 2021-22 down by 10.2 per cent YoY whereas the consolidated PAT stood at 170.7 crores, dropping by 23 per cent YoY. On a sequential basis, the net profit was down (-)35.33 percent compared to the June 2021 quarter profits of Rs 264.03 crore. The consolidated revenue registered YoY growth of 36 per cent at 3036.2 crores for the quarter.
Owing to the global expansions made and contributions being made by the new lines that were commissioned in the past quarters, Packaging Films Production witnessed a jump of 33.5 per cent YoY to reach 124670 MT in the second quarter of Financial Year 2022 while Packaging Films Sales witnessed an increase of 41.6 per cent YoY to reach 122321 MT.
Overall sales volume for the quarter was up by 31.5 per cent YoY. Speaking on business' financial performance, Rajesh Bhatia Group CFO, UFlex Ltd stated, "The company has been sailing on the rising tides of pandemic and competitive business environment and has consistently posted a series of exemplary performance over the past few quarters. The quarter too reflected strokes of highs in volumes with contribution in production coming from the newly commissioned capacities. The demand for packaging films continue to be strong and is reflected in 41.6 per cent sales volume surge in Q2FY22 over Q2FY21."
"All the newly commissioned plants in Hungary, Egypt, Russia and Poland are operating at near full capacity while Nigeria plant is ramping up fast and will achieve full capacity utilisation in next one to two quarters. However, the quarter witnessed heightened cost pressures with frequent increases in raw material prices, higher shipping and energy costs, and consequently, a strong order book position only meant servicing these customers at increased input prices, thus affecting the margins. However, given the strong demand momentum, once the raw material prices stabilise, the margins are expected to become better," he added.
Bhatia further said, "I am pleased to share that India Ratings has upgraded credit rating of UFlex by two notches to 'IND AA-' with a stable outlook reflecting the improvement in overall business profile of the company. This re-rating will further position UFlex amidst the competitive forces in the quarters ahead."
Ashok Chaturvedi, Chairman and Managing Director UFlex Limited said, "We have spread wideand delved deep for expanding our opportunity matrix. We added customers, entered new geographies and fortified existing relations. Strengthening our leadership position in Africa, we have successfully commissioned our greenfield project in Nigeria that will house a first-of-its-kind 10.6-metre wide BOPET film line with a capacity of 45,000 TPA.
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