UFlex Ltd., India’s largest multinational flexible packaging company and a global player in polymer sciences, today declared its earnings for the quarter ended December 31, 2019. Consolidated EBITDA for Q3 FY19-20 stood at INR 276.4cr, showing a jump of 21.4% on YoY basis while its consolidated net profit was up 56.7% YoY at INR 84.6 cr.
The Total Production Volume during the quarter was 93161 metric tonnes (MT) as compared to 96876 MT during the December 2018 quarter, while Total Sales Volume for the quarter was 91842 MT vis-à-vis 94229 MT in the December, 2018 quarter. The company reported consolidated net revenues of INR 1801cr for third quarter of fiscal 2019-20, as compared to INR 1981cr in same period last year.
Talking about the earnings for the company, Rajesh Bhatia, Global CFO, UFlex Ltd. said, “Q3 FY2019-20 was extremely exciting for us, from being ranked at 188 among India’s Fortune 500 to India Ratings upgrading us to IND ‘A’ ratings”. Adding, “Overall, operating EBITDA margins of 15% was achieved for the quarter driven by higher margins in Packaging Films Business and higher volumes in Packaging Business. In FY21, company’s Greenfield plants in Russia, Nigeria and Hungary will become operational and will add to the topline and profitability. The production, sales volume and net revenue in Q3 were lower marginally due to closure of one BOPET line in Dubai which is being shifted to Russia, but the Operating EBITDA was still up 19% YoY. It is heartening to see that the Packaging Business production volume in Q3 is up by 11% approx.”
Reinforcing the efforts by the company towards sustainability, Ashok Chaturvedi, CMD, UFlex Limited said, “The industry led by UFlex has got together to form Multi-Layer Plastics Films Sanitation Trust (MLPFST) that is partnering with State Governments to set up municipal solid waste sorting and segregation plant that will separate the plastic recoverable from mixed garbage via automated technology and recycle MLP waste into granules for making various plastic items including buckets, mugs, flower pots, outdoor furniture and many more. MLPFST has started off this project with the set-up of a pilot plant in Bengaluru and another one to be established at a leading tourist destination in North India later. This step validates our efforts to lead our industry in changing the myth around plastic and ensure that plastic reaches the right stream for its recovery.”
Some key product launches in this quarter by UFlex that will change the way the market functions
- New Products by Chemicals to Promote Sustainability: With an objective to promote sustainability, UFlex Chemicals Business launched three new products for the global markets that included:
a. FLEXSEAL Blister Coating- A water-based PUD used as heat sealable paperboard overprint varnish for sealing PET or PVC blisters and fold-over packages.
b. Aqueous Narrow Web Inks- Inks that were specially created to replace solvent based wide web flexo inks for high-end food packaging applications.
c. Aqueous water resistant OPV- Superior scuff and water resistant properties for deep-freeze and food wrap application.
- Engineering Innovations for Pharma Packaging: In order to value add to pharma industry, the Engineering business of UFlex developed machines that further push the pharma packaging industry towards a brighter future:
Awards 2018 besides the recently won Packaging Company of the Year by PrintWeek Awards 2019.