Uflex (500148) Q4 00/01 earnings summary

Executive summary

• FY ended Mar. 31, 2001 sales were Rs. 570.10 crore; a one-time Rs. 44.21 crore interest provision under the negotiated lender settlement contributed to a reported after-tax loss of Rs. 34.17 crore.

• On an annualized basis versus the prior 15-month period, sales grew 21% and profit before interest and depreciation grew 39%, supported by improved operating performance and marketing.

Financial highlights

• Sales were Rs. 570.10 crore versus Rs. 589.99 crore for the prior 15-month period; other income was Rs. 27.92 crore versus Rs. 31.58 crore.

• Profit before interest and depreciation was Rs. 97.95 crore versus Rs. 88.27 crore; interest and financial charges were Rs. 93.02 crore, including the one-time Rs. 44.21 crore settlement charge.

• Reported loss after tax was Rs. 34.17 crore versus Rs. 13.65 crore; no dividend was recommended in view of the loss.

Outlook and guidance

• Cost-cutting measures and financial discipline were underway; directors expected improved performance once the negotiated settlement was implemented.

• Packaging priorities included increasing domestic and export volumes, improving plant utilization and costs, and expanding customer-focused products in middle and upper market segments.

• Film strategy emphasized domestic sales and developing application-specific films as export competition pressured margins.