Uflex stock jumps 17% despite sharp fall in March quarter profit

We are in the last phase of the September quarter earnings season, and the results announced by the BSE 500 companies so far have shown signs of a sharp recovery, as compared to the June quarter, when the economic activity in the country was compromised due to lockdown in various regions. From the BSE 500 list, 216 companies have announced their September quarter results so far. We excluded banking and financial companies.  Along with the index stocks we also analyse each sector quarterly earnings. (Data Source: ACE Equity)

Packaging materials and solution company Uflex share price rallied 17 percent intraday on Tuesday despite sharp fall in March quarter profit.

Consolidated net profit dropped 27.6 percent year-on-year to Rs 71.1 crore, but revenue from operations grew by 12.2 percent to Rs 1,817.8 crore for the quarter ended March 2018.

The company said the fall in profit was primarily due to increased depreciation cost on account of commissioning of Aseptic Packaging Plant and higher tax outgo.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 2.1 percent to Rs 223.5 crore, but margin contracted 120 basis points to 12.3 percent compared to same period last year.

Rajesh Bhatia, Global CFO of Uflex said the total production volume has been up by 8.5 percent in FY17-18. The total sales volume has also echoed the same trend and has been up by 8.6 percent in last year.

Films segment sales volumes grew by 8 percent while packaging segment sales volumes rose 12 percent in FY18.

"Aseptic Packaging, which was commissioned during FY18 is gradually ramping up and we are already supplying to more than 12 customers. The trial runs are ongoing with some of the large customers and will surely culminate into sales in the current financial year," he said.

At 11:58 hours IST, the stock price was quoting at Rs 328.95, up Rs 42.50, or 14.84 percent on the BSE.