Uflex Poland subsidiary proposes brownfield expansion

The board of directors of Uflex Limited has proposed brownfield expansion to be undertaken by its step-down subsidiary company-Flex Films Europa Sp. Z.o.o (Poland).

The existing capacity of BoPET films in Poland is 33,500 MT per annum and it is utilising the capacity at 100 per cent. The proposed capacity addition is 42,000 MT per annum. This proposed capacity is expected to get added by FY21. The company would require an investment of Euro 55 million for this capacity addition process, which would be funded through debt.  With this capacity addition, the company would be able to meet the rising demand of BoPET films in European market.

The company has also declared its results for the quarter ending December 2019. Its standalone revenue for the quarter Q3FY20 came in at Rs 1,032.94 crore as against Rs 1,045.12 crore in the corresponding quarter last year, registering 1.2 per cent YoY decline. EBITDA for the quarter grew by 28.1 per cent YoY to Rs 136.49 crore as against Rs 106.51 crore in the corresponding quarter last year, with a corresponding margin expansion of 302 bps. EBITDA margin for the quarter stood at 13.2 per cent. PAT for the quarter came in at Rs 87.21 crore as against Rs 3.77 crore in the corresponding quarter last year, with YoY increase of 2,213.3 per cent.

On Friday, the stock of Uflex opened at Rs 232.80. In the early morning session, it surged at 4.4 per cent to Rs 236.45 from its previous close of Rs 226.55 on BSE.