Packaging Major Declares Loss Of Rs 416 Crore, Shares Fall Over 40% In 1-Yr

Leading small cap packaging sector company, Uflex Ltd announced on August 14 consolidated loss after tax at Rs 416 crore for the first quarter ended June 30, 2023 amid changes in the Forex Policy of Central Bank of Nigeria. The company in the same quarter of preceding fiscal declared its consolidated profit after tax at Rs 375 crore, according to the exchange filing. Uflex Ltd shares witnessed steep decline in last 1-year with a fall of 40%. If the last trading price of Uflex Ltd shares is taken into consideration, the stock declined 50% from its 52-week high price of Rs 811.05 apiece. Check details below:

Uflex Ltd Q1 Results: The company stated that it registered an exceptional loss of 382 crore due to changes in the forex policy of Central Bank of Nigeria in June 2023 causing impact to its bottomline. Meanwhile, consolidated revenue during the quarter under consideration declared at Rs 3278 crore, down 19% from the year-ago period. Total sales volume registered at 1.43 lakh tonnes, down 7.5% YoY.

"Globally, the packaging films business is facing headwinds due to high inflation in the US and European regions," UFlex Ltd Chairman and Managing Director Ashok Chaturvedi said.

In June 2023, the Central Bank of Nigeria (CBN) made significant changes to the operations within the Nigerian Foreign Exchange Market and reintroduction of Willing Buyer and Willing Seller model at the Investors and Exporters (l&E) window.

Consequently, the Nigerian Naira has devalued by approximately 62% against the US Dollar resulting into foreign exchange loss of Rs. 38155 lacs in the current quarter in Flex Films Africa Pvt. Ltd., Nigeria, the subsidiary company and are disclosed as an exceptional item for the current quarter, added the BSE filing of Uflex.

Uflex Ltd Stock Performance & Return: Last trading price of Uflex Ltd is Rs 403.55 apiece with intraday fall of 2.41%. Its 52-week high price is Rs 811.05 apiece and 52-week low price is Rs 325.20 apiece, respectively. It has a market capitalisation of Rs 2914.09 crore. In last 6-months, Uflex shares 21%, declined 22% in last 2-years, and gave return of 24% in last 3-years, and 36% in last 5-years.
Shares of Uflex Ltd surged 606% in last 10-years.

Uflex Ltd About: Uflex is India's largest multinational flexible packaging and solutions company. Since our inception in 1985, it has turned into a multi-billion company by focusing on trust, value creation for customers, quality innovation and customer satisfaction, according to its official website.