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UFlex slumps 7% on poor Q1 show

The packaging company reported a loss of Rs 416.18 crore in the June quarter against a profit of Rs 374.49 crore in the year-ago period

August 16, 2023 / 10:35 IST
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UFlex reported a loss of Rs 416.18 crore in the June quarter against a profit of Rs 374.49 crore in the year-ago period.

UFlex shares were down 7 percent in the morning trade on August 16 after the packaging company reported a loss of Rs 416.18 crore in the June quarter against a profit of Rs 374.49 crore in the year-ago period.

It was a loss-making quarter due to an exceptional expense of Rs 381.55 crore incurred due to changes in the Central Bank of Nigeria’s (CBN) forex policy, the company said on August 14. In June 2023, the reintroduction of the willing buyer and willing seller model at the importers and exporters window had led to devaluation of Nigerian Naira by 62 percent against the US dollar. This according to the company, which has a manufacturing facility in Nigeria, resulted in forex losses.

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The company reported a 19 percent year-on-year (YoY) decline in revenue at Rs 3,219.90 crore. Operating profit margins contracted by 900 basis points to 9 percent.

One basis point is one-hundredth of a percentage point.