UFlex reports strong Q3 FY 21-22 results

New film capacities add to volumes

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UFlex
UFlex numbers for the first three quarters of FY 2021-22

On Monday 14 February 2021, Uflex ended the day as the biggest gainer amongst the S&P BSE list on the Bombay Stock Exchange. The stock closed at Rs 551.30, up by 8.3%, rallying after it released good Q3 results at the end of the previous working week. 

In Q3 from October to December 2021, the company’s production volume reached a record 153,441 metric tons. The jump of 38% over the same period last year is a result of expansion and installations of new lines in the previous quarters. Sales also increased by 38%, reaching 154,224 metric tons.

The company’s total revenue grew Q3, to Rs 3463.42 crore from Rs 2072.55 crore in Q3 of FY20-21, an increase of 67.11%. The profit after tax for the quarter was reported at Rs 607.79 crore, up by 47.98% in comparison to the same period of the previous financial year. However, margins contracted to 17.55% from 19.5% in the same period of last year – a result of higher raw material and input costs. The margin pressure may continue with rising crude prices and the possible disruptions in the energy markets in Europe.

The Noida-based multinational packaging materials company continues to add capacity which should reflect in forthcoming quarters. Its new Asepto line at the Sanand plant should be commissioned soon and a new packaging film line is to come up at the greenfield site in Karnataka in South India. The homegrown multinational company has packaging facilities in Noida, Haridwar, and Jammu and the upcoming plant in Karnataka in India. In addition, its global manufacturing plants are in Dubai, Egypt, Nigeria, Poland, the US, Russia, and Hungary.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

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Editor of Indian Printer and Publisher since 1979 and Packaging South Asia since 2007. Trained as an offset printer and IBM 360 computer programmer. Active in the movement to implement Indian scripts for computer-aided typesetting. Worked as a consultant and trainer to the Indian print and newspaper industry. Visiting faculty of IDC at IIT Powai in the 1990s. Also founder of IPP Services, Training and Research and has worked as its principal industry researcher since 1999. Author of book: Miracle of Indian Democracy.

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