The total production volume during the quarter was 94,218-MT as compared to 10,2442-MT during September 2018 quarter and total sales volume for the quarter was 93,951-MT as compared to 101,081-MT in Sept 2018 quarter. Lower production and sales volume are attributed to closure of one BOPET line in Dubai as it is being shifted to Russia. The company reported consolidated net revenues of Rs 1,875.3-cr for second quarter of fiscal 2019-20, registering a drop of 7.2% on yoy basis.
Rajesh Bhatia, Group CFO at Uflex, said, “Q2 FY20 was a steady quarter and despite the closure of one BOPET line in Dubai, which is being shifted to Russia and will be operational in Q4FY20, the EBITDA grew by 5.4% and EBITDA margins improved from 13.1% to 14.9% on you basis.”
Clarifying on the impact of single-use plastic phase out by 2022, Bhatia said, “The current plan by the government on single-use plastic (SUP) in India will not affect Uflex business in any way since we do not manufacture carry bags and cutlery items which are included in SUPs. Uflex is in the business of manufacturing multilayer flexible packaging which is all 100% recyclable and all the plants of Uflex already have recycling facilities. Uflex is providing leadership to the industry and the industry association is proposing to set up a pilot plant which will showcase how to segregate municipal waste and recycle plastic waste and will surely address the negative perception around plastic, which is actually a boon material. Uflex USA plant is already certified by SCS Global for its minimum 90% post-consumer recycled (PCR) content PET film and Uflex will gradually set up PCR facilities at some of its plants worldwide.”
Ashok Chaturvedi, chairman and managing director, Uflex, said, “Keeping in mind our commitment towards the planet and the changing needs of the consumer packaged goods’ industry towards sustainable packaging, equipping our clientele with a mix of recyclable and biodegradable products besides setting up of PCR facilities at our plants shall remain our big focus, this year. These efforts will definitely help in reducing the plastic waste in the environment and create a truly circular plastic economy.”