Uflex (500148) Q4 04/05 earnings summary

Executive summary

• FY05 turnover including other income rose ~43% to Rs.92,587.59 lacs, while PAT fell to Rs.3,077.50 lacs from Rs.4,036.60 lacs as higher input costs and competition pressured margins.

• The second half was difficult; no dividend was recommended.

Financial highlights

• Net sales and job work reached Rs.88,817.86 lacs, up 44.63% YoY; other income was Rs.3,769.73 lacs, up 14.89%.

• Standalone PBT was Rs.5,166.56 lacs versus Rs.7,203.60 lacs; PAT was Rs.3,077.50 lacs versus Rs.4,036.60 lacs.

• Consolidated net sales and job work were Rs.89,732.77 lacs; consolidated PAT was Rs.3,376.91 lacs versus Rs.4,295.89 lacs.

• Operating cash flow was Rs.7,874.57 lacs versus Rs.14,855.63 lacs; fixed-asset purchases used Rs.6,567.16 lacs on a standalone basis.

Outlook and guidance

• Management expected continued growth in sales and profitability, supported by product quality, low production costs, portfolio breadth and export reach.

• A second-phase expansion of Dubai manufacturing facilities was under consideration; Dubai capacity was expected to add to consolidated turnover and profitability.

• Holographic products, gift wraps, gift bags, boxes and ZIP pouches were introduced as value-added offerings expected to support profitability.