Uflex (500148) Q4 97/98 earnings summary

Executive summary

• 18-month period ended Dec. 31, 1998; turnover including other income was Rs. 62,758.13 lacs and net loss was Rs. 12,169.57 lacs, versus a 12-month prior period, so figures are not strictly comparable.

• Lower earnings and tight liquidity disrupted operations and contributed to business losses; directors recommended no dividend.

Financial highlights

• Sales were Rs. 59,859.16 lacs and other income Rs. 2,898.97 lacs; total income after inventory change was Rs. 61,636.39 lacs.

• Reported EBIDT was Rs. 7,583.46 lacs versus Rs. 12,032.86 lacs in the prior 12-month period; loss before tax was Rs. 12,162.86 lacs versus profit of Rs. 2,345.33 lacs.

• Net loss was Rs. 12,169.57 lacs versus net profit of Rs. 2,198.33 lacs; interest and financial charges were Rs. 14,032.31 lacs and depreciation Rs. 5,714.01 lacs.

Outlook and guidance

• Management expected better performance in the current year, supported by export focus, higher capacity utilisation, cost reduction and improved resource use.

• Packaging plans included gradually entering lower-end markets and expanding innovative, value-added products; film market conditions were expected to improve over time.