Buzzing Stock: Uflex soars 8 per cent after reporting strong Q3 results

The stock ended the day as the top gainer on the BSE 500.

India's largest multinational in flexible packaging materials and solutions, Uflex Limited was the biggest gainer on the S&P BSE 500 today, closing higher by 8.30 per cent to Rs 551.30. The rally in stock price came after the Noida-based company recorded a strong set of Q3 results. 

In the quarter ended December 2021, owing to the global expansions and contributions being made by the new lines that were commissioned in the past quarters, total production volume surpassed its previous record to reach 153441 MT in Q3FY22 witnessing a jump of 38 per cent YoY whereas total sales volume mirrored the 38 per cent YoY increase to reach 154224 MT. 

As a result, the topline of the company grew by 67.11 per cent YoY to Rs 3463.42 crore from Rs 2072.55 crore in Q3FY21. PBIDT (Ex OI) was reported at Rs 607.79 crore, up by 47.98 per cent as compared to the year-ago period and the corresponding margin was reported at 17.55 per cent, contracting by 196 basis points YoY. The contraction in margins came because of rising input costs. PAT was reported at Rs 312.85 crore, up by 95.32 per cent from Rs 160.17 crore in the same quarter for the previous fiscal year. The PAT margin stood at 9.03 per cent in Q3FY22 expanding from 7.61 per cent in Q3FY21.         

The plastics industry has been able to expand both globally and locally with rapid technological advancements, rising consumption, regulatory focus and brands' commitment to move towards sustainable packaging. However, the company is facing margin pressure with rising crude oil prices and growing input costs. 

Looking ahead, the company expects incremental growth to come in the forthcoming quarters as it operationalizes its new aseptic liquid packaging capacity in Sanand and packaging films lines in Karnataka and Dubai. 

UFlex is India's largest multinational in flexible packaging materials and solutions and a global polymer sciences corporation. It has packaging facilities at multiple locations in India and has packaging film manufacturing facilities in India, UAE, Mexico, USA, Egypt, Poland, Russia, Hungary and Nigeria. 

On Monday, the stock of Uflex Limited closed at Rs 551.30, up by 8.30 per cent or Rs 42.25 per share. The 52-week high of the scrip is recorded at Rs 658.45 and the 52-week low at Rs 351.05 on the BSE.