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Uflex Q3 net up 38 per cent; stock trades flat

India’s largest packaging company Uflex posted a subdued set of Q3FY16 numbers on Tuesday after market closing hours. Company posted a marginal sales decline of 2 per cent, however profits increased by 38 per cent on account of increase in other income.

The company’s consolidated total revenues stand at Rs 1498.1 crore compared to Rs 1529.8 crore achieved during the same period in last fiscal, representing a de-growth of 2.07 per cent. The decline in sale was due to the fall in selling prices of packaging films mainly owing to the drop in the prices of raw material. On an operational front Uflex posted a flat growth as EBITDA (Earnings Before Interest, Depreciation and Amortization) grew negligibly by 0.78 per cent. Company has benefitted from lower commodity prices, as raw material expense as a percentage to total revenue dropped by 663 basis points to 54.83 per cent. The increase in EBITDA is attributed to lower cost of production which has been reflective of a drop in power and fuel expenses by 22.47 per cent on a yearly basis. Margins for the quarter in review more or less remained flat at 12.47 per cent.

Profit after tax for the quarter stands at Rs 78.68 crore compared to Rs 57.07 crore attained in the corresponding quarter of the last fiscal, demonstrating a growth of 38 per cent. Profit was on a higher side inspite of lower sales and operational performance due to increase in the other income and lower tax expenses for the company.

Uflex consolidated revenue for nine months ended December 2015, stood at Rs. 4,623.59 crores, registering decline of 2.03 per cent Y-O-Y (year on year). The company reported consolidated net profit of Rs. 232.60 crore, growing by 24.91 per cent Y-O-Y.

The company further informed that the work towards commissioning the first of its kind, aseptic packaging plant in Sanand, Gujarat is underway in full swing. Uflex is also gearing up for participating in the Make in India week in Mumbai.

Responding to the Q3 results, Uflex scrip was trading flat with negative bias on NSE at Rs 167.

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