BWI: UFLEX Ltd Q1 FY10-11 Net Profit Up 31.7 % at Rs. 60.50 crores

Press release from Business Wire India
Source: UFLEX Limited
Wednesday, August 04, 2010 10:44 AM IST (05:14 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 Q1 FY10-11 Net Profit Up 31.7 % at Rs. 60.50 crores


New Delhi, Delhi, India, Wednesday, August 04, 2010 -- (Business Wire India) -- --Phase-I of expansion in Mexico with 26400TPA polyester film running at full capacity; Implementation of Phase-II initiated
--- Opens access to North America as facility has trade pacts and part of NAFTA
--- Egypt Phase I Capacity is expected to commence soon during last week of August 2010 and opens access to Europe as facility has FTA

Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company continues to grow from strength to strength registering a 31.7 % increase in its consolidated net profit before extra ordinary income for the quarter ended June 30, 2010 at Rs. 60.50 crore as against Rs. 45.93 crore for the same period last year.

UFlex's consolidated revenue for the June quarter of 2010 stood at Rs. 660.69 crore as against Rs. 507.47 crore for the same quarter last year, up 30.2 %. The higher revenue growth is attributed to new capacity expansion, increased utilization and higher net realization of the company's product line.

On a sequential basis also, the company registered growth in its quarter-on-quarter consolidated net profit of 25.4 % over profit figures of the preceding quarter that stood at Rs. 48.24 crore in the January-March quarter (Q4 FY09-10). A pick-up in economic activity, global demand trends and increased production helped the company maintain its growth trajectory.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, "Our strategy is to reach as close as possible to the markets and bring ease of access for our customers; hence reducing costs and go-to-market timeline. This, coupled with our solutions based approach to product development that rides on innovation is what excites our customers and they continue to show their trust in us, which is reflected in our improved financial performance consistently over the years."

UFLEX is currently undertaking expansion plans involving investments of more than US $250 million over the next couple of years which will include the setting up of various green/brown field projects across Mexico, Egypt, Dubai and India.

In Mexico, UFlex has already implemented Phase I of its manufacturing facility involving production of 26400TPA polyester film which is running presently at full capacity. This facility has trade pacts and is part of the North American Free Trade Agreement (NAFTA) and thus opens access to a large market like North America. The second phase of expansion is aimed at adding similar capacity taking the total to 52800TPA. The second phase will see investment of US $54m with completion timeline of June, 2011. UFlex's total investment in Mexico is pegged at US $ 109 million.

For the financial year 2009-10, the consolidated net profit of UFLEX before extra-ordinary items rose 23 21 % to Rs 188.41 185.63 crore as against Rs 153.30 crore in the year ago period. Net revenue in the year, however, grew by 13 12 % to Rs 2296.65 2314.31 crore.

Recently, Uflex Ltd marched in to the BSE-500 index of India's top 500 listed industrial conglomerates and was also ranked second highest company among the Mid-Cap 400 listing by 'Dalal Street Journal', India's leading financial journal.

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, 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 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 Pvt Ltd, +91 9350266285, anand@mavcommgroup.com
Neeraj Atri, Mavcomm Consulting Pvt Ltd, +91 9811714871, n.atri@mavcommgroup.com

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