Uflex drops 4%, hits 52-wk low on report of Income-Tax raid at Noida office

Shares of Uflex India declined 4.4 per cent, hitting a fresh 52-week low of Rs 466 apiece, on the BSE in Tuesday's intra-day trade amid reports of Income Tax raid at the company's Noida office. At 10:00 AM, shares of the company were down 3 per cent to Rs 473.3 as against an unchanged S&P BSE Sensex.

According to several media reports, the Income Tax department was conducting a raid at the office of Uflex in Noida, alleging that the company has issued several bogus bills in the recent past which were under scanner. Business Standard couldn't independently verify the developments. 

Meanwhile, in the October-December quarter (Q3) of financial year 2022-23 (FY23), the company reported total income of Rs 3,496 crore, up 0.6 per cent year-on-year. The company's earnings before interest, depreciation and amortization, tax and foreign exchange gain came in at Rs 429 crore as compared to Rs 599 crore in the corresponding quarter of FY22. 

Total loss after Tax during the quarter was Rs 85 crore which was largely due to a loss of Rs 84 crore on account of currency devaluation by Egypt.  In 03FY22, UFlex had recorded net profit (PAT) of Rs 314 crore.

"It has been a challenging quarter for the packaging industry globally, with rising energy costs in the European Union, rising interest rates, and weakened growth momentum in the United States and other developed economies. UFlex is confident of navigating these current macroeconomic conditions and will continue to deliver longterm stakeholder value. Our distributed global manufacturing strategy, execution capabilities, investments in research and development, and product innovation will enable us to deliver year-on-year profitable growth," Ashok Chaturvedi, chairman and managing director, UFlex had said in a statement.

UFlex is India's largest multinational flexible packaging and solutions company, and has created a presence across all verticals of the packaging value chain - Flexible Packaging, Packaging Films, Aseptic Liquid Packaging, Holography, Printing Cylinders, Engineering, and Chemicals.