Containers & Packaging company Uflex declares Q3FY22 result: UFlex Net Profit Jumps by 96% YoY to Rs 313.2cr in Q3FY2021-22 Net Revenue rises by 64.6% to Rs 3474.3 cr in Q3FY22 EBITDA grows by 48.5% YoY to Rs 618.7 cr in Q3FY22 Posts Highest-ever Quarterly Production & Sales Volume The company posted a consolidated PAT of Rs 313.2 cr surging by 95.9% YoY whereas the consolidated EBITDA stood at Rs 618.7 cr for Q3FY21-22, up by 48.5% YoY. The consolidated net revenue registered 64.6% YoY jump to reach Rs 3474.3 cr for the quarter under review. Owing to the global expansions and contributions being made by the new lines that were commissioned in the past quarters, Total Production Volume surpassed its previous record to reach 153441 MT in Q3FY22 witnessing a jump of 38% YoY whereas Total Sales Volume mirrored the 38% YoY increase to reach 154224 MT. Speaking on the business' financial performance, Rajesh Bhatia Group CFO, UFlex Ltd stated, "Rapid technological advancements, rising consumption, regulatory focus and brands' commitment to move towards sustainable packaging have resulted in significant changes and numerous chances for the plastics industry to expand locally and globally. However, after last year's slump, the crude oil prices are rising again and the growing input costs are a cause for concern. Its impact across industries and on prices of raw materials in addition to other products is going to be more pronounced. This quarter indicates a high in packaging films production volume with the contribution to our topline coming from the newly commissioned overseas capacities reflected in YoY growth of 46.3% in packaging films production volume. Looking ahead, we are expecting incremental growth in forthcoming quarters as we operationalize our new aseptic liquid packaging capacity in Sanand and packaging films lines in Karnataka & Dubai. " Highlighting company's sustained efforts towards building a circular plastic economy, Ashok Chaturvedi, Chairman and Managing Director UFlex Limited said, "Packaging waste management especially of plastic is an ever increasing area of focus, across the world. UFlex has been walking the green path by recycling post-consumer MLP mixed plastic waste; upcycling recycled resins into Post-consumer Recycled (peR) films range and also creating solutions that use lesser amount of virgin plastic at source. The new high value line of products and solutions including the proposed enzyme-based biodegradable packaging solution are aimed at adoption of responsible packaging and reflects our increased focus and investments in R&D.; UFlex has already been recycling close to 30,000 tonnes of plastic waste per year and our target is to reach 1,00,000 tonnes. The new recycling lines to be commissioned in our Mexico and Poland facility and the proposed recycling infrastructure in Egypt will help us realize our vision. We are also expecting the new EPR regulations in India shortly which will bring more certainty towards sustainable packaging. " Result PDF
Conference Call with Uflex Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: UFlex Posts 36% YoY growth in Net Revenue at 3036.2 cr in Q2FY2021-22 EBITDA at 424.5 cr & PAT at 170.7 cr Commissions Greenfield 45,000 MTA production capacity BOPET Film Manufacturing Plant in Nigeria The company posted consolidated EBITDA at 424.5 cr for Q2FY21-22 down by 10.2% YoY whereas the consolidated PAT stood at 170.7 cr, dropping by 23% YoY. The consolidated Revenue registered YoY growth of 36% at 3036.2 cr for the quarter. Owing to the global expansions made and contributions being made by the new lines that were commissioned in the past quarters, Packaging Films Production witnessed a jump of 33.5% YoY to reach 124670 MT in Q2FY22 while Packaging Films Sales witnessed an increase of 41.6% YoY to reach 122321 MT. Overall Sales Volume for the quarter was up by 31.5% YoY. Speaking on business' financial performance, Rajesh Bhatia Group CFO, UFlex Ltd stated, "The company has been sailing on the rising tides of pandemic and competitive business environment and has consistently posted a series of exemplary performance over the past few quarters. The quarter too reflected strokes of highs in volumes with contribution in production coming from the newly commissioned capacities. The demand for packaging films continue to be strong and is reflected in 41.6% sales volume surge in Q2FY22 over Q2FY21. All the newly commissioned plants in Hungary, Egypt, Russia & Poland are operating at near full capacity while Nigeria plant is ramping up fast and will achieve full capacity utilization in next 1-2 quarters. However, the quarter witnessed heightened cost pressures with frequent increases in raw material prices, higher shipping & energy costs, and consequently a strong order book position only meant servicing these customers at increased input prices, thus affecting the margins. However, given the strong demand momentum, once the raw material prices stabilize, the margins are expected to become better. Continuing, he added, "I am pleased to share that India Ratings has upgraded credit rating of UFlex by two notches to 'IND AA-' with a stable outlook reflecting the improvement in overall business profile of the company. This re-rating will further position UFlex amidst the competitive forces in the quarters ahead." Ashok Chaturvedi, Chairman and Managing Director UFlex Limited said, "We have spread wide and delved deep for expanding our opportunity matrix. We added customers, entered new geographies and fortified existing relations. Strengthening our leadership position in Africa, we have successfully commissioned our greenfield project in Nigeria that will house a first-of-its-kind 10.6 meter wide BOPET film line with a capacity of 45,000 TPA." Result PDF
Highlights: Highest-ever quarterly Production & Revenue Posts Consolidated PAT of INR 264 crore, a growth of 34.4% YoY EBITDA increases by 19.3% YoY to INR 502 crore in Q1 FY22 Commissions 10.4mt wide BOPP film line in Hungary with 42,000 TPA production capacity The company continued with its growth momentum and posted a Consolidated Net Profit of INR 264 crore which surged by 34.4 % YoY and its Consolidated EBITDA stood at INR 502.4 crore, rising by 19.3% YoY to for Q1 FY2020-21. The Consolidated Total Revenue registered by the company for the first quarter of the fiscal 2021-22 was INR 2761.2 crore, an increase of 38.2% YoY. Total Production Volume during Q1 FY2021-22 was 138876 metric tonnes (MT) clocking a growth of 30% YoY whereas Total Sales Volume was 133476 MT, an increase of 29.8 % YoY. Commenting on the results, Rajesh Bhatia, Group President (Finance & Accounts) & CFO, UFLEX Ltd. said, "Despite the headwinds in raw material prices and freight costs, we maintained consistent supply chain operations and simultaneously focused on volume-led profitable growth backed by enhanced capacities from recently commissioned plants including Hungary BOPP plant which was commissioned during the quarter." Continuing, "The Flexible Packaging volumes were affected due to the second COVID-19 wave that struck India in Q1FY22. Our EBIDTA margins stood at 18.2% in Q1FY22 as compared to 21.1% in the same quarter last year." Ashok Chaturvedi, Chairman & Managing Director, UFLEX Ltd said, "UFLEX has been on the path to fulfill its vision to get closer to its patrons with manufacturing units across the world with BOPP line in Hungary commissioned and Nigeria set to be commissioned. With consumers getting more mindful of what and how they consume, the packaging industry needs to be proactive in developing sustainable packaging without compromising on convenience and functional attributes of plastic. UFLEX has progressed in developing green products and solutions such as biodegradable packaging, water soluble bags and more, which will not only meet the approval of consumers but also uplift their perception of flexible packaging industry." Result PDF