Uflex (500148) Q4 99/00 earnings summary

Executive summary

• 15-month period ended Mar. 31, 2000: sales Rs. 58,999.48 lacs; loss after tax Rs. 1,364.52 lacs, or Rs. 1,801.78 lacs including prior-period interest of Rs. 437.26 lacs.

• Operations improved materially: annualized sales growth 18% and EBIDT growth 39%; net profits of Rs. 49 lacs and Rs. 58 lacs in the final two quarters.

• No dividend recommended; comparison with the prior 18-month period is not strictly comparable.

Financial highlights

• Total income Rs. 62,157.51 lacs, including other income of Rs. 3,158.03 lacs; EBIDT Rs. 8,827.41 lacs for the 15-month period.

• Interest and financial charges Rs. 5,377.62 lacs; depreciation Rs. 4,802.41 lacs; loss before tax Rs. 1,352.62 lacs.

• Loss after tax including prior-period interest was Rs. 1,801.78 lacs versus Rs. 12,169.57 lacs in the prior 18-month period.

Outlook and guidance

• Expected better current-year performance, supported by improved economic conditions, absorption of excess supply, cost control, working-capital discipline and higher capacity utilization.

• Packaging priorities: grow exports in developing and developed markets and expand penetration of the domestic traditional segment.

• Film priorities: improve utilization; PET film capacity could rise to 115–120% with debottlenecking, while BOPP utilization had recovered.

• Thick PET Film Project implementation was under cautious review following advice from financial institutions.