UFlex financial results for Q1 of FY 24

Consolidated revenue of Rs 3,278 crore; 19% down YoY

August 17, 2023

Flexible packaging and solutions company UFlex announced its financial results for the first quarter ended 30 June 2023. The company’s unaudited results were approved by the Board of Directors.

The company posted consolidated revenue of Rs 3,278 crore. The company’s earnings before interest, depreciation and amortization, currency devaluation/fluctuation gain/loss, and tax (EBITDA) for this quarter stands at Rs 304 crore. The consolidated revenue registered a decrease of 19% YoY, while the sales volume decreased by 7.5% YoY.

Ashok Chaturvedi, chairman and managing director, UFlex, stated, “FY24 has begun on the right note with packaging verticals delivering strong performances. Globally, the packaging films business is facing headwinds due to high inflation in the US and European regions. In India, we have seen an uptick in demand, and our new CPP and BOPET lines in Dharwad, Karnataka are operational, which resulted in 22% YoY increase in sales volume in the quarter. Our backward integration strategy of manufacturing polyester resin chips, investments in sustainable products and solutions, technology, and continued focus on recycling, decarbonization, and other environment-friendly manufacturing processes will help us achieve our business and strategic goals”.

Rajesh Bhatia, Group CFO, UFlex, said that while the packaging films business in India and globally continues to remain sluggish, UFlex’s flexible packaging and aseptic packaging business continues to perform well. “Despite the impact of an early monsoon in 2023, we have witnessed 7% YoY increase in sales volume in the packaging business in the quarter. By debottlenecking the existing aseptic packaging plant at Sanand, Gujarat, we intend to achieve a capacity of about 12 billion packs per annum from April 2024 onward. Our continued focus on exports has resulted in 56% YoY increase in exports from India to touch INR 400 crores”.

The company continued the momentum in innovation and product development with a slew of launches in Q1.

Q1 FY24 Highlights (Standalone)

Revenue Rs 1671 crore (Decrease of 1.5% YoY)
EBITDA Rs 206 crore (Increase of 0.2% YoY)
PAT Rs 55 crore (Decrease of 27% YoY)
Total sales volume 63997 tons (up 13.6% YoY)

Q1 FY24 Highlights (Consolidated)

Revenue at Rs 3,278 crore (Decrease of 19% YoY)
EBITDA at Rs 304 crore (Decrease of 58% YoY)
Loss after tax at Rs 416 crore against PAT of Rs 375 crore in Q1 FY23
Exceptional loss of Rs 382 crore due to change in the forex policy of the Central Bank of Nigeria in June 2023
Total sales volume 143159 tons (down 7.5% YoY)

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