Page 29 - Plastics News September 2020

ONGC registers standalone net Profit of Rs. Uflex's consolidated net Profit up by 116.7%
496 crore YoY to Rs 196.5 crore

n its 330th Meeting held on 01 September, 2020, Flex Ltd., India's largest multinational flexible
IONGC Board approved the results for First Quarter Upackaging company and a global player in
(Q1) of FY 2020-21. According to the release ONGC polymer sciences declared its earnings for first quarter
declared results for Q1 FY'21 posting a net profit of Rs of FY2020-21. The company posted a stellar
496 crore despite depressed prices. Also the company performance where the company's Consolidated Net
(ONGC) reported 92 per cent slump in its June quarter
net profit after oil prices halved and gas rates fell to a
decade low. Standalone net profit of Rs 496 crore in
April-June was 91.7 per cent lower than Rs 5,980 crore
net profit a year back, the company said in a

Profit surged by 116.7% YoY to INR 196.5 crore for Q1FY
2020-21. Consolidated Total Revenue for the first
quarter of fiscal 2020-21 stood at INR 1997.5 crore, a
statement. The surprise profit came after the company marginal increase of 0.78% YoY. Speaking of the
delayed payment of cess on crude oil it produces. results, Rajesh Bhatia, Group President (Finance &
Initially, the company did not pay even royalty in Accounts) & CFO, UFlex Ltd. said, “Q1 FY2020-21 has
anticipation of relief from the government to deal with been a quarter of great progress for UFlex. With
a slump in oil prices. It cleared royalty payments at innovations seen in FlexiTubes, Spout Pouches and
June-end but cess payments were done only in July other product portfolios, we have been working
ONGC pays about Rs 400 crore of royalty and cess every relentlessly during these challenging times. The
quarter to the government. Revenues dipped 51 per demand for pouching saw a huge increase led by
cent to Rs 13,011 crore after a nationwide coronavirus personal hygiene category. This was reflected in our
lockdown impacted fuel demand. ONGC said it got USD quarterly performance via higher sales volumes, a
28.72 for every barrel of crude oil it sold in the quarter, huge surge in profitability and much healthier EBITDA
down from USD 66.32 a barrel in the same period a year margins of 21.1%. Even amidst the lockdown, we were
back. Gas price realisation fell 35.2 per cent to USD able to complete the construction of our new facilities
2.39 per million British thermal unit. “The revenue and in Poland and Russian and start trial runs.” Ashok
net profit for Q1 have been impacted by lower crude Chaturvedi, Chairman & Managing Director, UFlex
price realization,” ONGC said. “Lower gas prices also Limited said, “The COVID-19 pandemic has been an
contributed to lower topline and bottomline.”
epic test of leadership character. As an essential
Consolidated net profit at Rs 1,090 crore was 84.7 per supplies player, UFlex had the humongous
cent lower than Rs 7,120 crore a year back. The
responsibility to ensure continuity of packaging
company's crude oil production was flat at 4.8 million
material supplies for food and pharma, which is the
tonne while gas output fell 12.3 per cent to 5.4 billion
lifeline in present context and allied products. Team
cubic meters. The gas output was lower due to reduced
UFlex assumed its responsibilities and rose to the
offtake by industries shut down during the lockdown.
occasion in discharging their duties.”

September 2020 29 Plastics News