India’s largest multinational flexible packaging materials and solution company Uflex Limited declared the earnings for quarter ended 30 September 2016 today. The consolidated net profit at INR 90.4 Crore has gone up by 16% when compared to the same quarter, last fiscal. EBITDA rose by 6% and stood at INR 233.1 Crore. Consolidated total revenue at INR 1559 Crore in Q2 FY 2016-17 is 2% higher than the levels registered in the same period during FY 2015-16.
In terms of the H1 FY 2016-17 numbers, the consolidated net profit is up by 15% at INR 176.6 Crore as compared to H1 FY 2015-16. EBITDA stands at INR 461.5 Crore as opposed to INR 439.9 Crore last fiscal thereby registering a 5% growth. The top line however is a tad lower by 1% and stands at INR 3097.7 Crore compared to the first half of the previous financial year.
Commenting on Q2 results, Mr. R.K. Jain, Group President (Corp. F & A) Uflex Limited said:
If you look at the H1 FY 2016-17 numbers our volume of packaging films has gone up by 9% and the volume of value added packaging products have increased by 1% thereby registering an overall volume growth of 7% Y-O-Y.
The bottom line has risen by 16% on the back of innovative and value added packaging products that we have been continuouslyintroducing both in India and overseas.
Our raw material prices are linked to crude oil prices. The downward pressure of raw material prices over the past few quarters has been retaining the selling prices of the goods on the downside. Therefore you will see that while the volumes have grown, the total revenue has not shown growth during the period.
The volume of packaging films has gone up by 14% during the reporting period w.r.t. Q2 FY 2015-16. Volume of packaging products has gone up by 5% during Q2 FY 2016-17 when compared to the same period in the previous financial year. Thus we have registered a 12% growth in overall volume Y-O-Y.
In the investors’ communique released soon after declaring the Q2 results, Mr. Ashok Chaturvedi, Chairman and Managing Director, Uflex Limited said:
As we approach the completion of commissioning our Aseptic Packaging Plant at Sanand – Gujarat, excitement is building up by the days. I am pleased to inform you that the civil work is almost complete and installation of state-of-the-art machines is underway. With steady progress at site, the plant will be commercially operational by April/May 2017. Encouragingly great interest has been pouring in for liquid packaging solutions from some of the leading F&B brands. We see our new product offering fruitfully extending our ties with existing clients besides bringing many more on board.
The schedule of activities related to our technological collaboration with Comiflex SRL Italy for manufacturing geared and gearless C.I. Flexo Printing Machines at our Engineering Plant in Noida is progressing well and we hope to come up with the first machine by the end of this financial year.
Talking about our commitment towards sustainability infused innovation; we have engineered the 9.5 micron PET AlOx Speciality Film. Manufactured at our plant in Mexico, not only is the film transparent but it also offers extremely superior barrier properties. The R&D team has successfully restricted both Water Vapour Transmission (WVTR) and Oxygen Transmission Rates (OTR) well below one. The film is substantively down-gauged without diluting the performance and machinability. The product has been well received by the market.
In the coming months you will get to hear about many more product innovations and process improvements that will take your company to newer heights.