Uflex posted fantastic numbers for Q1FY21. Its consolidated net profit rose 116% (YoY) to Rs.196 crore though net revenue growth was flat at Rs.1993 crore v/s Rs.1978 crore.
What really helped was the 7% drop in total expenses and tax write back of Rs.9 crore. The total expenses, as a percentage of total revenue came down from 94% to 87%.
EBITDA rose 52% to Rs.416 crore while margins were up from 7.06% to 20.89%.
The company said that due to the pandemic, consumption trends witnessed a shift and flexible packaging has gained much more importance especially because of the hazards attached to non-packaged products. This resulted in higher production and sales volume. Total Production Volume rose over 13% at 107599 metric tonnes (MT) and total sales volume was up 9% at 103575 MT.
The company said that even amidst the lockdown, it was able to complete the construction of its new facilities in Poland and Russia and start trial runs.
The market is thrilled with this performance and the stock price, which had closed yesterday at Rs.337.55, opened higher at Rs.362 to go on and hit a new high at Rs.368.35.