Uflex zooms 19%, hits record high on robust March quarter results

In Q4FY21, Uflex's consolidated Ebitda jumped 87 per cent YoY to Rs 516.4 crore while margins improved to 20.1 per cent from 15.6 per cent in Q4FY20

Shares of Uflex hit a fresh lifetime high after they zoomed 19 per cent to Rs 570 on the BSE in intra-day trade on Wednesday on the back of a robust March quarter (Q4FY21) result.

India's largest multinational flexible packaging company and a global player in polymer sciences posted 163 per cent year on year (YoY) jump in its consolidated net profit at Rs 264.7 crore supported by healthy operational performance. Consolidated revenue also grew 45 per cent YoY at Rs 2,572 crore while consolidated Ebitda (earnings before interest, taxes, depreciation, and amortisation) jumped 87 per cent YoY to Rs 516.4 crore and margins improved to 20.1 per cent from 15.6 per cent in Q4FY20.

"We witnessed a rise in demand for packaging materials and ancillary businesses while also adding newer clients. The company’s total production volume up by 33.7 per cent YoY in Q4FY21 at 126,822 metric tonnes (MT) whereas total sales colume for the quarter clocked in at 136429 MT, an increase of 43.5 per cent YoY," the company said in a statement.

That apart, taking into consideration the growing demand of the company's products (aseptic packaging), Uflex has announced capital expenditure (capex) of Rs 120 crore for printing line and some associated equipment. The finance of the said capex plan will be done through owned and borrowed funds.

The company also said it has commissioned a brownfield BOPP film line in Egypt with a capacity of 42,000 TPA. Going forward, the management expects higher volumes in FY22 from the company's newly set-up capacities and shall strive to maintain Ebitda margins of 20 per cent, it added.

At 10:23 am, the stock was up 16 per cent at Rs 554 on the BSE as compared to a 0.36 per cent gain in the S&P BSE Sensex. Trading volumes on the counter jumped an over seven-fold as a combined 2.7 million shares had changed hands on the NSE and BSE till the time of writing of this report.