UFlex posts Rs 63.3 crore profit in July-September quarter

UFlex Ltd on Wednesday reported a 67 per cent decline in consolidated net profit to Rs 63.3 crore for the July-September quarter of the current financial year, as against a net profit of Rs 190.7 crore in the same quarter last year.

The standalone revenue of the packaging solutions company decreased to Rs 1,650.5 crore during the quarter from Rs 1720.5 crore in the same period of the previous year.

UFlex recorded a sales volume increase of 8.9 per cent to 64,232 MT during the quarter.

The consolidated revenue of the company decreased from Rs 3,848.8 crore to Rs 3,389.5 crore in Q2.

UFlex Group CMD Ashok Chaturvedi said: “In Q2, our flexible packaging business witnessed increased sales volumes both on QoQ and YoY basis. The Packaging Films business witnessed increased sales volumes on a QoQ basis but was almost flat on a YoY basis. While the EBITDA margins (excluding exceptional items with respect to currency devaluation) are down on a YoY basis.”

“The margins have improved significantly on a sequential quarter basis, which has led to EBITDA (excluding exceptional items with respect to currency devaluation) increasing to Rs 405.9 crore in Q2 from Rs 303.7 crore in Q1. We expect that the Packaging Films business margins will improve further from Q4 onward,” he added.