Uflex Reports Consolidated Net Revenue Growth of 17.7% in Q3
Uflex Ltd declared its earnings for the Quarter ended December 31, 2018 and reported consolidated net revenue of INR 1981.1 crore, a jump of 17.7% on Y-o-Y basis. The consolidated EBITDA for Q3 FY18-19 stood at INR 227.7 crore, showing an increase of 13.6% Y-O-Y while the consolidated net profit rose marginally by 3.8% Y-o-Y to 54 crore for Q3 FY19.
Total Production Volume during the quarter was 96876 MT up 4.4% Y-o-Y and Total Sales Volume rose by 3.1% Y-o-Y to 94229 MT.
Talking about the earnings, Rajesh Bhatia, Group CFO at Uflex Limited said, "The performance during this quarter is exceptional against the backdrop of huge volatility in crude oil prices. From a high of $84.94 on Oct 01 2018, the brent crude prices kept on falling consistently to $50.57 on Dec 28 2018, thereby registering a fall of over 40% during the quarter. Such a consistent steep fall often results in de-stocking by the customers to avoid inventory losses and still the overall sales volume increased by 3.1% Y-o-Y. The Aseptic Packaging Business continues to grow and has currently over 40 customers spanning across juice, dairy and alcohol segments and we expect EBITDA breakeven in Q4."
Ashok Chaturvedi, Chairman & Managing Director, Uflex Limited said, "Flexible packaging industry has been working on plastic waste management and sustainability is influencing many packaging decisions. All FMGG and Pharma brands are looking at bespoke recyclable and biodegradable packaging solutions that are also cost-effective and Uflex is confident of providing leadership in these endeavors, this year."
He added, "Uflex had taken a lead in putting up Recycling plants ahead of most manufacturers globally. In continuation of our efforts towards sustainability, we have successfully commissioned our Pyrolysis Plant at Noida facility in this quarter, making our packaging division a zero discharge unit."
Few more key product launches and developments in Q3 FY18-19 are listed below:
US Patent was granted to FlexFilms USA for a breakthrough BOPET Film used for Alu Alu Blister Packaging. With the patent issuance, the company gets exclusive right of manufacturing and sale of this special BOPET film in US, for the next 20 years. This innovation in pharma packaging will see our 100% environment friendly BOPET film replacing the carcinogenic PVC that is hazardous for human health.
Uflex steered the path of innovation by unveiling a range of new products in Pharma Packaging for the Indian market, such as:
-Fast Tear Strip Foil: Uflex has developed 20-micron pinhole free soft tempered foil that will replace 30 and 40-micron soft tempered strip foil pack laminate being used by pharmaceutical companies. This foil contributes in providing higher yield gain of 36% leading to tremendous cost savings for pharma companies.
-PET based Cold Form Blister: Bolstered by the grant of US Patent for BOPET film that is used in Alu-Alu packs, Uflex has developed Alu-Alu packaging, making it an indigenous product since for conventional Cold Form Laminate, PVC and BON have to be imported into India. Alu-Alu packaging provides sustainability and cost optimization over conventional Cold Form Laminate.
-Child Resistant & Senior Friendly (CRSF) Foil: The Child Resistant & Senior Friendly (CRSF) Foils are available in two types Push-Through and Peel-Push. This requires some amount of pressure for a child to open it, although a senior can open it easily. This protects unintentional damage and tampering of the foil affecting the formulation during handling, as against a conventional blister foils.
The Engineering Business of Uflex strengthened it product portfolio through initiatives and developments, like:
-Design Copyright Grant for Printing Machine with Unique Feature : Received a design copyright for creating first time globally - A Rotogravure Printing Machines for curing of special purpose UV coatings with LED lights, having over 60 to 70 microns of enhanced build-up of material on defined areas, to give an embossed feeling on plastic or paper substrate.
-Improved Machines for Better Yield: Rotary FFS Machine that was earlier being used for mouth fresheners etc. has been modified to be used for spices, coffee and other powdered products, at much higher speeds. Also, a new version of Slitter Machine with Turret on re-wind for better productivity was developed and launched.
-IIOT to Transform Converting Machines: On the road to Industry 4.0, Engineering Business of Uflex is on its way to realign its business model through investment in technology & process and adoption of IIOT in manufacturing, thereby enabling the business to compete more effectively and pass on the benefits to customers through overall improvement of equipment effectiveness and predictive maintenance. With this initiative taken, some of the first IIOT enabled converting machines will be launched in last quarter of FY 2018-2019.