Uflex Ltd's Q1FY19 consolidated net profit rises 1% yoy to Rs94cr: Beats Estimates

The company’s consolidated revenue stood at Rs1,905cr, up 18% yoy and 5% qoq.

Aug 10, 2018 01:08 IST India Infoline Research Team

Uflex Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 1,904.85 17.6
EBITDA 247.69 6.8
EBITDA Margin (%) 13 [131]
Net Profit (adjusted) 94.09 1.1
***EBITDA margin change is bps

Packaging company Uflex Limited (Uflex) reported better than expected numbers in Q1FY19. Consolidated revenue was up 18% yoy (5% qoq) at Rs1,905cr, surpassing the consensus estimate of Rs1,859cr. Higher input cost and operating expenses led to EBITDA margin contraction of 131bps yoy (expansion of 66bps qoq) to 13%. EBITDA growth was restricted to 7% yoy (11% qoq) at Rs248cr. However, EBITDA and EBITDA margin surpassed the consensus estimates of Rs239cr and 12.9%, respectively. Consolidated PAT was up by a mere 1% yoy (32% qoq) at Rs94cr, ahead of the consensus estimate of Rs85cr.

Other Highlights

  • Revenue growth for the quarter was led by sales volume growth of 15% yoy, while production volume was up 12% yoy. 
  • At the operating level, higher raw material cost (up 162bps yoy as % of sales) and operating and manufacturing expenses (up 63bps yoy as % of sales) dented EBITDA margins.
  • Tax rate in Q1FY19 was 14% vs. 13% in Q1FY18 and 16% in Q4FY18.

Technical View:

Uflex Ltd ended at Rs291, down 2.95 points, or 1%, from its previous closing of Rs293.95 on the BSE. The scrip opened at Rs295.90 and has touched a high and low of Rs299 and Rs290, respectively. A total of 1,41,650 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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