Uflex (500148) Q4 08/09 earnings summary

Executive summary

• FY09 consolidated net sales and job work reached Rs 204,209.97 lacs; profit after tax rose to Rs 18,671.27 lacs from Rs 11,133.91 lacs despite the global slowdown.

• Plastic films and flexible packaging improved YoY; packaging machinery was affected by the downturn. Domestic and export markets remain growth priorities.

Financial highlights

• Consolidated gross sales including other income were Rs 253,626.92 lacs vs Rs 207,704.48 lacs in FY08; EBITDA was Rs 39,221.40 lacs vs Rs 29,540.68 lacs.

• Consolidated PAT was Rs 18,671.27 lacs, including a Rs 3,320.38 lacs net exceptional gain; excluding the exceptional item, adjusted profit was Rs 15,328.56 lacs.

• Standalone turnover including other income was Rs 204,444.02 lacs vs Rs 172,472.30 lacs; PAT was Rs 10,461.87 lacs vs Rs 6,192.79 lacs.

• Consolidated total income was Rs 217,303.78 lacs vs Rs 176,390.98 lacs; net sales and job work were Rs 204,209.97 lacs vs Rs 163,892.95 lacs.

Outlook and guidance

• Egypt film project first phase, planned for 35,000 TPA BOPP capacity, was expected to complete by March 2010; second-phase PET and CPP facilities were targeted for March 2011.

• Mexico PET film project phase one, with 26,400 TPA capacity, was commissioned; phase two was expected by mid-FY11.

• Management cited continued opportunity in domestic and international film and flexible packaging markets, supported by innovation and productivity improvements.

• FY09-10 Indian GDP growth was projected at 6%-6.5%; global growth in 2010 was forecast at 2.5% after a projected 1.4% contraction in 2009.