Uflex posts a strong performance in Q3 FY2018-19

Earnings record a Y-o-Y jump by 17.7%

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Uflex Ltd. declared its earnings for the quarter ended 31 December 2018 and reported consolidated net revenue of INR 1981.1 crore, a jump of 17.7% on Y-o-Y basis. The consolidated EBITDA for Q3 FY18-19 stood at INR 227.7 crore, showing an increase of 13.6% Y-O-Y while the consolidated net profit rose marginally by 3.8% Y-o-Y to 54 crore for Q3 FY19.

Total Production Volume during the quarter was 96876 MT, up 4.4% Y-o-Y and Total Sales Volume rose by 3.1% Y-o-Y to 94229 MT.

Talking about the earnings, Rajesh Bhatia, group chief financial officer at Uflex Limited said, “The performance during this quarter is exceptional against the backdrop of huge volatility in crude oil prices. From a high of US$ 84.94 on 1 October 2018, the brent crude prices kept on falling consistently to US$ 50.57 on 28 December 2018, thereby registering a fall of over 40% during the quarter. Such a consistent steep fall often results in de-stocking by the customers to avoid inventory losses and still the overall sales volume increased by 3.1% Y-o-Y. The Aseptic Packaging Business continues to grow and has currently over 40 customers spanning across juice, dairy and alcohol segments and we expect EBITDA breakeven in Q4.”

Ashok Chaturvedi, chairman and managing director, Uflex Limited said, “Flexible packaging industry has been working on plastic waste management and sustainability is influencing many packaging decisions. All FMGG and Pharma brands are looking at bespoke recyclable and biodegradable packaging solutions that are also cost-effective and Uflex is confident of providing leadership in these endeavors, this year.”

He added, “Uflex had taken a lead in putting up recycling plants ahead of most manufacturers globally. In continuation of our efforts towards sustainability, we have successfully commissioned our Pyrolysis Plant at Noida facility in this quarter, making our packaging division a zero discharge unit.”

Some other key product launches and developments in Q3 FY18-19 are listed below:

US Patent was granted to FlexFilms USA for a breakthrough BOPET Film used for Alu Alu Blister Packaging. With the patent issuance, the company gets exclusive right of manufacturing and sale of this special BOPET film in US, for the next 20 years. This innovation in pharma packaging will see Uflex’s 100% environment-friendly BOPET film replacing the carcinogenic PVC that is hazardous for human health.

Uflex steered the path of innovation by unveiling a range of new products in pharma packaging for the Indian market, such as fast tear strip foil, PET-based cold form blister, and its Child Resistant & Senior Friendly (CRSF) foil.

The Engineering Business of Uflex strengthened its product portfolio through initiatives and developments, like Design Copyright Grant for Printing Machine with Unique Feature, improved machines for better yield, and IIOT to transform converting machines.

More detail on the results for quarter ended 31 December 2018 is available at www.uflexltd.com/financials.php