UFlex Reports Unaudited 4Q, Full Year 2023 Results

UFlex Ltd announced its consolidated financial results for the fourth quarter and full year ended March 31, 2023. The company’s unaudited results were approved by the Board of Directors in a meeting held earlier.

The consolidated revenue of the company grew by 11.4% YoY to INR 14,784 crore ($1.8 billion) in FY23, driven by 32.6% sales volume growth in Packaging (Flexible and Aseptic). The company’s earnings before interest, depreciation & amortization, currency devaluation/fluctuation gain/loss, and tax (EBITDA) for FY23 is INR 2068 crore ($251n million).

In FY23, the total production volume was 589,637 MT and the sales volume was 587,118 MT.

“In FY23, UFlex continued its growth momentum and achieved the highest-ever revenue of INR 14,784 crore,” said Ashok Chaturvedi, chairman and managing director, UFlex Ltd. “The packaging films industry witnessed new capacity additions at a time when demand was impacted, especially in the US and Europe, on account of global issues. However, the worst seems to be over, and we are witnessing an increase in both demand and prices globally. The European energy crisis also seems to be behind us, and gas prices have slumped.

“We are currently setting up PET chip resin manufacturing facilities in India and Egypt. Given the size and scale of our PET films business globally, it was imperative that we integrate backward to manufacture our own PET chips,” Chaturvedi added.

“Our Aseptic packaging business achieved significant growth in FY23 (sales volume growth of 116% YoY) and we continue to explore opportunities to debottleneck the existing plant at Sanand, India, and increase the throughput and productivity,” Chaturvedi noted. “Overall, FY23 can be termed as a year of consolidation for the flexible packaging industry, and we remain bullish on the flexible and aseptic packaging industry with continued focus on recycling and sustainability”.

“In FY23, despite all the challenges, UFlex achieved even greater heights and clocked its highest-ever revenue,” Rajesh Bhatia, Group CFO, UFlex Ltd., said. “The challenges emanating from the Russia and Ukraine conflict and the aggressive fiscal policies of the US Fed impacted the costs as well as the demand for flexible packaging films but our diversified product portfolio which includes flexible packaging, aseptic packaging, inks & adhesives, Holography, printing cylinders, and engineering, helped us keep our overall growth momentum intact in FY23. The profitability in FY23 was impacted by unprecedented currency devaluation in Egypt and currency exchange loss on account of the US dollar strength against the other world currencies.”