The largest flexible packaging company in India and one of the leading flexible packaging companies in Asia pacific region Uflex Ltd declared its earnings for the quarter ending March 2021 and fiscal 2020-21, posting strong numbers with surge in Consolidated Net Profit of 163% as its Consolidated EBITDA jumped by 87%.
Declaring its earnings for the quarter ending March 2021 and fiscal 2020-21, posting strong numbers with surge in Consolidated Net Profit of 163% YoY to INR 264.7 crore in Q4FY 2020-21 and Consolidated EBITDA jumped by 87% YoY to INR 516.4 crore, Uflex’s Consolidated Revenue for the last quarter of fiscal 2020-21 stood at INR 2571.8 crore, has shown an increase of 45.1% YoY. The company also declared a dividend of 25%.
With packaging taking the center stage in pandemic affected 2020, UFlex rose above the challenges to post exemplary performance in FY2020-21. The company witnessed a rise in demand for packaging materials and ancillary businesses while also adding newer clients. This is evident by the rise in Total Production Volume by 33.7% YoY in Q4 FY2020-21 that stood at 126822 metric tonnes (MT) whereas Total Sales Volume for the quarter clocked in at 136429 MT, an increase of 43.5% YoY. For the full year 2020-21, Total Production Volume stood at 463065 MT and Total Sales Volume was 462418 MT, growth of 21% and % 21.5% respectively on YoY basis.
Speaking on the results, Rajesh Bhatia, Group CFO at UFlex Limited said, “Although the quarter witnessed steep increase in raw materials prices coupled with availability issues, we managed to deliver a strong performance to wrap up the year. Our EBIDTA margins for Q4 FY20-21 improved to 20.1% vs 15.6% for the same quarter last fiscal. We will be doubling our capacity in aseptic packaging and commissioning more packaging films lines in FY22 in line with our earlier announced capacity expansion. Continuing with expansion of our packaging film capacities, we commissioned a brownfield BOPP film line in Egypt with a capacity of 42,000 TPA.” He further added, “In FY22, I expect higher volumes from our newly set-up capacities and shall strive to maintain EBITDA margins of 20%.”
Ashok Chaturvedi, Chairman & Managing Director, UFlex Limited stated, “Our business network has weathered the disruption whilst also demonstrating resilience to cope with the ever-changing demands of the sector. We commissioned three of our projects- a BOPET film line in Russia and Poland each, and a BOPP film line in Egypt – thus gaining a wider reach globally.”
Continuing, he said, “The pandemic did not dampen our focus on ESG practices and we continued to accentuate our efforts on this front. After the success of post-consumer multi-layer mixed plastic waste and PET bottle waste recycling lines at Noida in India, we are in the process of replicating these at our overseas locations, at an even larger scale. At our Mexico facility, we are setting up plant to upcycle postconsumer PET bottles waste into high recycled content polyester PCR films, for flexible packaging applications and also propose to set up facilities to recycle post-consumer multi-layer mixed plastic waste to make molded, injection molded and extrusion molded components, both of which shall contribute to a circular plastic economy. In Poland, again, we are setting up plant to recycle post-consumer multi-layered mixed plastic waste to make various molded components.”
UFlex has always been at the forefront of developing innovative products and offer those solutions to the market for a better future. In the last quarter of FY2020-21, UFlex presented a series of new offerings across its businesses that can be viewed here.
Some of UFlex’s clients on the global turf include P&G, PepsiCo; Tata Global; Mondelez, L’ Oreal, Britannia, Haldiram, Amul, Kimberly Clark, Ferro Rocher, Perfetti, GSK, Nestle, Agrotech Foods, Coca Cola, Wrigley, Johnson & Johnson among others.