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Uflex hits record high after strong Q4 results

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Capital Market
Last Updated : Jun 30 2021 | 11:51 AM IST

Uflex soared 15.81% to Rs 552.95 after the company's consolidated net profit soared 163% to Rs 264.95 crore on 43.3% increase in net sales to Rs 2,495.14 crore in Q4 FY21 over Q4 FY20.

Profit before tax jumped advanced 177.8% to Rs 336.30 crore in Q4 FY21 from Rs 121.06 crore in Q4 FY20. EBITDA jumped by 87% year on year to Rs 516.4 crore in Q4 FY21.

The company said it witnessed a rise in demand for packaging materials and ancillary businesses while also adding newer clients. The packaging company's total production volume grew by 33.7% year on year in Q4 FY21 and stood at 126,822 metric tonnes (MT) whereas total sales volume for the quarter clocked in at 136,429 MT, an increase of 43.5% YoY.

The flexible packaging company's consolidated net profit zoomed 127.5% to Rs 843.68 crore in the year ended March 2021 (FY21) as against Rs 370.88 crore in the year ended March 2020 (FY20). Net sales jumped 19.3% to Rs 8,674.51 crore in FY21 over FY20.

Speaking on the results, Rajesh Bhatia, Group CFO at UFlex 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%.

Meanwhile, the company announced that it will increase packaging capacity to 7 billion packs per annum by March 2022 and will invest Rs 120 crore for the proposed expansion.

Shares of Uflex hit a record high of Rs 570.05 in intraday today. The stock has climbed 178% from its 52-week low of Rs 205.10 hit on 30 June 2021.

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Uflex is one of the largest multinational flexible packaging materials and solution company in India.

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First Published: Jun 30 2021 | 10:16 AM IST

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