BWI: UFLEX Ltd Q2 FY10-11 Net Profit Up 341% at Rs. 203 crores

Press release from Business Wire India
Source: UFLEX Limited
Monday, October 25, 2010 12:42 PM IST (07:12 AM GMT)
Editors: General: Consumer interest, Economy, Food & drink; Business: Banking & financial services, Business services, Financial Analyst, Household & personal care products & services, Stock exchanges
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UFLEX Ltd Q2 FY10-11 Net Profit Up 341% at Rs. 203 crores
Rolls out Capacity Expansion in Egypt at $135 million Investment; To Add Aggregate 77,000 TPA of BOPP, PET and CPP Films Production Along With Increased Access to European Markets

New Delhi, Delhi, India, Monday, October 25, 2010 -- (Business Wire India) -- Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company has set a benchmark registering a landmark growth of 341% increase in its consolidated net profit for the quarter ended September 30, 2010 at Rs. 203crore as against Rs. 46 crore for the same period last year, the highest growth in any quarter registered so far.

The firm's consolidated revenue for the September quarter of 2010 stood at Rs. 859 crore as against Rs. 586 crore for the same quarter last year, up 47%. The higher revenue growth is attributed to new capacity expansion, increased utilization and higher net realization of the UFlex's products line.

On a sequential basis also, UFlex registered growth in its quarter-on-quarter consolidated net profit of 233% over profit figures of the preceding quarter that stood at Rs. 61 crore in the April-June quarter (Q1 FY10-11).

For the six months period ending September 30, 2010, UFlex recorded net profit of Rs. 263 crore against Rs. 92 crore in the corresponding period last year, a growth of 185%. Net revenue of the company for the six months ended Sept. 30, 2010 stood at Rs. 1551 crore compared Rs. 1118 crore in the same period in previous fiscal,up by 39%.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, "Our endeavor has been to continuously raise the bar of our performance in the quest to be globally competitive and bring incremental value to our shareholders. Our strategy which rides on innovation has brought about a Darwinian evolution of packaging concepts and packaging designs in the market which has also made a positive difference in the go-to-market initiatives of our clients that has a direct bearing on our financial health as well."

UFLEX is continuing with its strategy of capacity expansion and adding manufacturing lines for new product categories across facilities in Egypt, Mexico and Dubai - not only to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.

In Egypt, the Company is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35,000 TPA; 30000TPA of PET (Polyester) and 12000TPA of CPP films aggregating to total capacity of 77,000 TPA. The company's planned investments in Egypt are pegged at US$ 135 million. This facility has trade pacts with GCC nations, Southern Europe & Africa, Middle East, West Asia and CIS to access larger markets.

The first phase of this expansion involving added capacities in BOPP films has already commenced operations, while the second phase of setting up facilities for PET and CPP films is expected to be completed by the 3rd quarter of FY 2011-12.

For the financial year 2009-10, the consolidated net profit of UFLEX before extra-ordinary items rose 21% to Rs 186 crore as against Rs 153 crore in the year ago period. Net revenue in the year, however, grew by 12 % to Rs 2419 crore.

Uflex's strong manufacturing base in India, Mexico, Dubai and Egypt caters to global markets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle East and the South Asian Countries.

Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.

The company's partial client list includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, Hindustan Petroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit, and Birla 3M, among others.

About UFLEX Ltd

UFLEX Ltd (www.flexfilm.com) is the Bombay Stock Exchange (UFLEX: 500148) and NSE listed India's largest flexible packaging company with large manufacturing capacities of plastic film and packaging products providing end-to-end solutions to clients across more than 100 countries.

Synonymous with flexible packaging industry in the country, UFLEX group has Gross annual revenue of Rs. 30 billion and Gross Capital Investment across the world of about Rs. 26 billion.

UFLEX offers finished packaging of a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, desert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinates & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering components etc..


CONTACT DETAILS
T. Anand Mahesh, Mavcomm Consulting, +91 9350266285, anand@mavcommgroup.com
Neeraj Atri, Mavcomm Consulting, +91 9811714871, n.atri@mavcommgroup.com

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