Uflex (500148) Q4 01/02 earnings summary

Executive summary

• FY ended Mar. 31, 2002 returned to profitability after three loss-making years; management attributed the recovery to productivity gains, cost reduction, aggressive marketing and financial discipline.

• Sales and job work rose 16.87% YoY, while reported operating profit (EBIDT) grew 29.34%; outlook remained cautiously optimistic amid competitive pricing and export pressure.

Financial highlights

• Sales and job work were Rs. 59,286.50 lakh vs. Rs. 50,729.63 lakh; total income was Rs. 61,387.19 lakh vs. Rs. 53,931.15 lakh.

• EBIDT was Rs. 12,667.60 lakh vs. Rs. 9,794.29 lakh; profit before tax was Rs. 4,471.93 lakh vs. a Rs. 3,410.19 lakh loss.

• Net profit after tax was Rs. 2,835.82 lakh vs. a Rs. 3,416.79 lakh loss; no dividend was recommended following prior-year losses.

• Interest and financial charges fell to Rs. 3,926.93 lakh from Rs. 9,301.54 lakh; reported basic and diluted EPS were Rs. 8.71 and Rs. 7.27.

Outlook and guidance

• Management was cautiously optimistic about improved performance, citing cost-cutting measures and stringent financial discipline already initiated.

• Priorities included consolidating export markets, increasing laminate sales volume and improving film sales in domestic and international markets amid pressure on margins and input costs.

• Captive and external demand for rotogravure cylinders was expected to improve, supporting revenue and performance.