Uflex (500148) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 delivered higher sales and profit despite an economic slowdown; cost controls, productivity gains and better plant utilization supported performance.

• Turnover including other income rose ~11% to Rs.68,679.43 lakh; net profit increased 25.83% to Rs.3,568.19 lakh.

Financial highlights

• Sales and job-work revenue was Rs.64,954.50 lakh, up 9.56% YoY; other income rose 36.45% to Rs.3,724.93 lakh.

• Operating profit before interest, depreciation and tax reached Rs.14,076.75 lakh, up 11.12%; PBT rose 41.83% to Rs.6,342.37 lakh.

• PAT was Rs.3,568.19 lakh versus Rs.2,835.82 lakh; reported basic and diluted EPS were Rs.9.09 each.

• Operating cash flow increased to Rs.16,278.13 lakh from Rs.8,340.50 lakh; net cash rose to Rs.8,617.99 lakh at year-end.

Outlook and guidance

• Management expected better performance, with growth dependent on FMCG buying patterns, supply-demand balance, raw-material costs, competition and industry conditions.

• A new cost-efficient film line and full utilization of existing plants were under consideration; the new line was expected to support revenue and profitability.

• Domestic BOPP demand was reported to be growing ~20% annually; global BOPP consumption was expected to grow 8%–10% annually.

• Export laminate sales growth and higher film volumes were priorities to improve operating costs and profitability.