UFlex Ltd Q4 FY10-11 Net Profit Up 277% at Rs. 181 Crore

UFlex Ltd Q4 FY10-11 Net Profit Up 277% at Rs. 181 Crore

The Expansion in Mexico to be completed by June, 2011 and produce 30000 TPA of PET film.

The first phase of expansion in Egypt to produce 35000TPA of BOPP Film commenced operations… Second phase under implementation, to commence by December, 2011 and produce 30000 TPA of PET film and 12000 MTS of CPP film.

Announced First Greenfield investment to be made in Poland of $80 million for manufacturing of 30,000 MTs of polyester film to commence operations by June, 2012 and in US of $90 million for manufacturing of 30000 MTS of Polyester film to be commenced by December, 2012

UFlex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company closed the financial year ended March 31, 2011 on a strong note registering an exponential growth of 266% increase in its consolidated net profit at Rs. 695 crore as against Rs. 190 crore for the corresponding period last year, on the back of strong demand trends globally and increasing manufacturing capacities across its facilities in Egypt,  Mexico, Dubai and India.

Maintaining a consistent record of highest growth by any company in the sector so far in a quarter, UFlex registered a growth of 277% in its consolidated net profit for the fourth quarter ended March 31, 2011 at Rs. 181 crore as against Rs. 48 crore for the same period last year.

The firm’s consolidated revenue for the March quarter of 2010-‘11 stood at Rs. 947 crore as against Rs. 679 crore for the same quarter last year, up 40 %.

For the Financial Year ended March 31, 2011, UFlex recorded net revenue at Rs.3410 crore compared Rs.2314 crore in the same period in previous fiscal, up by 47%.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFlex Ltd, “Demand for flexible packaging in India is expected to continue to grow sharply and we remain focused on delivering quality products which has translated in to strong financial results and successful long term relationships globally. UFlex posted strong volume growth in both its Packaging products and Films Businesses, this quarter. Volume in international operations increased and with the commencement of operation of our expansion facilities in  India, Mexico & Egypt during the year, we are expecting a further volume growth and Rs 4,500-crore revenue by end-this fiscal”.

Expansion Plans

UFlex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia in Poland with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012.

The Company has recently announced plans to invest Rs 380-crore to set up a polyester films plant in Kentucky, US with an annual capacity of 30,000 metric tonnes. The US facility will start production by December 2012.

In Mexico, the company is implementing expansion of PET film capacity by 30000 TPA which is expected to be completed by June, 2011.

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.

With plans of new manufacturing lines and corresponding investments UFlex is all set to achieve the next milestone of touching the $1 billion revenue mark by FY 2012 – the first company in the flexible packaging sector in India to achieve this milestone.

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