Shares of Uflex Ltd extended their declining trend for a seventh session in a row on Monday, plummeting by up to 15 percent to nearly two-year lows after income tax authorities reportedly carried out raids at over 70 locations affiliated with the company.
The stock hit a low of Rs 365 a share – a level last seen on April 23, 2021 and fell as much as 14.82 percent. At 12.36pm, the stock dropped 12.5 percent to Rs 374 a share. In the last 10 out of 11 seasons it lost over 30 percent while so far this year it declined over 34 percent.
As per a PTI report, fraudulent transactions worth Rs 500 crore have been unearthed, and two premises belonging to the company in Noida (Uttar Pradesh) and Shahdara in Delhi have been sealed. Raids have been carried out at 15 locations outside of Noida, and searches are being conducted at 10 more locations in the National Capital Region (NCR). The search operation is still on at 66 locations, including those in the NCR, the news agency reported.
The stock exchanges requested clarification on a news report on February 21, but the company has not yet provided a response.
For the December quarter, the firm’s total income only increased by 0.6 percent, while reporting a loss of Rs 85.41 crore. The company attributed the loss to currency devaluation in Egypt, resulting in a loss of Rs 84 crore. In the third quarter, the notional foreign exchange losses due to currency devaluation/fluctuations amounted to Rs 236 crore, an unprecedented figure. However, in March 2022, the packaging sector’s total sales volumes grew by 34.3 percent on-year, and the production volumes grew 31 percent on-year.
“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,” said Ashok Chaturvedi, Chairman and Managing Director Uflex in its earnings release.