UFlex Delivers a Robust Performance in Q2 FY20-21

UFlex Ltd, India's largest multinational flexible packaging company and a global player in polymer sciences, today declared its earnings for the quarter ending September, 2020. The company posted a strong performance with Consolidated Revenue rising by 19.2% YoY to INR 2234.5 crore, EBITDA increasing by 69.6% YoY to INR 472.9 crore and Net Profit jumping YoY by 136% to INR 221.8 crore in Q2 FY2020-21.

The company has registered back-to-back successful quarters where they witnessed surge in demand for multiple lines of businesses while also adding newer clients. This is evident by the rise in total sales volume by 18.8% YoY to 111645 MT in Q2FY2020-21. Total production volume for the quarter showed an increase of 25.7% YoY to 118470 MT, the Packaging Films production volume grew by 26.8% YoY and Packaging production volume grew by 22.1% YoY.

Speaking of the strong results, Rajesh Bhatia, Group CFO at UFlex Limited said, "As expected, this quarter our performance has continued on the growth trajectory. The surge in production and sales volume of Packaging Films is on account of additional output from Russia & Poland plants. The surge in packaging production and sales volumes by 22% and 23.3% YoY respectively is an outstanding achievement. Whether it is developing new solutions or adding new customers, we have ensured a holistic growth performance. CRISIL has reaffirmed our long-term and short term credit rating at A/stable & A1 respectively."

Ashok Chaturvedi, Chairman & Managing Director, UFlex Limited said, "This quarter has witnessed a resurgent UFlex, despite all the COVID-19 challenges, achieving highest ever quarterly production, sales, revenue, EBITDA & PAT. We have been pivotal in providing packaged products to the end consumers during the pandemic period. To ensure that we are future-ready and have a better outreach of sustainable solutions to our clients located globally, we have been scaling up our international operations. We are glad to announce that during the quarter, we commenced commercial operations from Russian facility which will help bring us closer to our customers in Russia & CIS markets."

He continued, "We are eagerly waiting for a COVID-19 problem to be over which will bring focus back on sustainability in flexible packaging as we are ready to commercialize our various biodegradability initiatives."

Shares of UFLEX LTD. was last trading in BSE at Rs.332.95 as compared to the previous close of Rs. 330.7. The total number of shares traded during the day was 6946 in over 410 trades.

The stock hit an intraday high of Rs. 337.7 and intraday low of 329.6. The net turnover during the day was Rs. 2316228.

Source : Equity Bulls

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