Uflex (500148) Q4 96/97 earnings summary

Executive summary

• FY97 sales fell to Rs. 43,008.71 lacs from Rs. 46,018.94 lacs; operating profit before interest and depreciation edged up, while PAT more than halved.

• Performance was pressured by weak demand, high interest costs, depreciation and MAT-related tax burden; export growth and BOPP stabilization supported operations.

Financial highlights

• Sales were Rs. 43,008.71 lacs vs Rs. 46,018.94 lacs; other income was Rs. 851.92 lacs vs Rs. 1,028.89 lacs.

• Profit before interest and depreciation was Rs. 12,032.86 lacs vs Rs. 11,705.08 lacs; PBT was Rs. 2,345.33 lacs vs Rs. 4,500.31 lacs.

• PAT was Rs. 2,198.33 lacs vs Rs. 4,495.31 lacs; tax provision included the impact of MAT.

• Interest and financial charges rose to Rs. 6,728.72 lacs from Rs. 4,938.59 lacs; depreciation increased to Rs. 2,958.81 lacs from Rs. 2,266.18 lacs.

Outlook and guidance

• In H1 FY98, laminate volume grew 25%, including 106% export growth; PET export volume rose 48% while total PET volume was flat, and BOPP volume grew 90%.

• Better H2 FY98 performance was expected, based on improving operations and anticipated recovery in industrial demand and funding conditions.

• The thick PET film project was proceeding cautiously, with its status to be reviewed as market conditions warranted.

• The USD 90 million, 7–10-year ECB programme was expected to be completed in FY98; required principal approvals and IFCI guarantee assistance were secured.