Uflex Q4 profit falls to Rs 83 lakh, revenue down 14% to Rs 3,320 cr

Packaging materials company Uflex Ltd on Tuesday reported a 99.7 per cent drop in its consolidated net profit to Rs 83,000 for the fourth quarter ended 31st March 2023 due to currency exchange losses.

Uflex said in a regulatory filing that the company posted a net profit of Rs. 350.59 crore during the January-March quarter last year.

Its operating income decreased by 14% to Rs. 3,320.18 crore during the quarter under review as against Rs. 3,861.86 crore in the corresponding period of the previous financial year.

Uflex total expenditure was Rs.3,306.15 crore, down by 4.37 per cent in the last quarter of FY23, against Rs.3,457.39 crore.

Its total income in the March quarter was Rs. 3,393.51 crore, down by 14.15 per cent.

For the financial year ending March 2023, Uflex net profit decreased by 56.27 per cent to Rs. 480.76 crore from Rs. 1099.43 crore in FY22.

“Profitability in FY23 was affected by an unprecedented currency devaluation in Egypt and a loss in currency exchange on account of the strength of the US dollar against other global currencies,” said Rajesh Bhatia, Chief Financial Officer of Uflex Group.

Its consolidated revenue from operations increased by 11.58% to Rs.14,457.92 crore in FY23.

Commenting on the result, Uflex Chairman and Managing Director Ashok Chaturvedi said: “The packaging film industry has seen new capacity additions at a time when demand, particularly in the US and Europe, has been affected by global issues.”

However, it appears that the worst is over and Uflex is seeing an increase in both demand and prices globally.

“It seems that the European energy crisis is behind us, and gas prices have fallen,” he said.

Uflex is India’s largest multinational flexible packaging materials and solutions company and a leading global player in polymer science. It has manufacturing facilities in India, UAE, Mexico, Egypt, USA, Poland, Russia, Nigeria and Hungary.

Shares of Uflex Ltd settled on Tuesday at 414.55 rupees per share on BSE, down 0.53 per cent from the previous close.

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