Uflex packs a punch

Uflex is currently the top gainer on the BSE. The stock, which had closed yesterday at Rs.477.45, opened today at Rs.510 and went on to hit a new high at Rs.570.05, which is not too far from its 20% UC of the day at Rs.572.90.

The company posted strong numbers with surge in consolidated net profit of 163% (YoY) at Rs.265 crore, with EBITDA jumping up 87% at Rs.516 crore, with margins rising from 15.6% to 20.1%.  Its revenue was up 45% at Rs.2572 crore.

The company also declared a dividend of 25%.

With packaging taking the center stage in pandemic affected last year, the company witnessed a rise in demand for packaging materials and ancillary businesses while also adding newer clients. Its total production volume rose 33% during the quarter while total sales volume was up 43.5%.

For the full year 2020-21, Total Production Volume stood at 463065 MT and Total Sales Volume was 462418 MT, growth of 21% and % 21.5% respectively on YoY basis.

The company is going ahead with its plan to double its capacity in aseptic packaging and commissioning more packaging films lines in FY22, in line with its earlier announced capacity expansion. It also commissioned a brownfield BOPP film line in Egypt with a capacity of 42,000 TPA. In FY22, it expects higher volumes from its newly set-up capacities and expects to maintain EBITDA margins of 20%.