Uflex Limited, India’s largest multinational flexible packaging company and a global player in polymer sciences, today declared its earnings for the quarter ended September 30, 2019 and its consolidated EBITDA for Q2 FY19-20 stood at INR 278.8 cr, showing an increase of 5.4% YoY basis while its consolidated net profit fell marginally by 1.8% YoY to INR 94 cr.
The total production volume during the quarter was 94218 MT as compared to 102442 MT during Sept 2018 quarter and Total Sales Volume for the quarter was 93951 MT as compared to 101081 MT in Sept 2018 quarter. Lower production and sales volume are attributed to closure of one BOPET line in Dubai as it is being shifted to Russia. The company reported consolidated net revenues of INR 1875.3 cr for second quarter of fiscal 2019-20, registering a drop of 7.2% on Y-o-Y basis.
Talking about the earnings for the company, Rajesh Bhatia, Group CFO at Uflex said, “Q2 FY2019-20 was a steady quarter and despite the closure of one BOPET line in Dubai, which is being shifted to Russia and will be operational in Q4FY20, the EBITDA grew by 5.4% and EBITDA margins improved from 13.1% to 14.9% on Y-o-Y basis.”
Clarifying on the impact of single use plastic phase out by 2022, Bhatia said, “The current plan by GoI on Single Use Plastic (SUP) in India will not affect Uflex business in any way since we do not manufacture carry bags and cutlery items which are included in SUPs. Uflex is in the business of manufacturing multi-layer flexible packaging which is all 100% recyclable and all the plants of Uflex already have recycling facilities. Uflex is providing leadership to the industry and the industry association is proposing to set up a pilot plant which will showcase how to segregate municipal waste and recycle plastic waste and will surely address the negative perception around plastic, which is actually a boon material. Uflex USA plant is already certified by SCS Global for its minimum 90% post-consumer recycled (PCR) content PET film and Uflex will gradually set up PCR facilities at some of its plants worldwide.”
Ashok Chaturvedi, chairman and managing director, Uflex said, “Keeping in mind our commitment towards the planet and the changing needs of the consumer packaged goods’ industry towards sustainable packaging, equipping our clientele with a mix of recyclable and biodegradable products besides setting up of PCR facilities at our plants shall remain our big focus, this year. These efforts will definitely help in reducing the plastic waste in the environment and create a truly circular plastic economy.”
