UFlex clocks highest ever revenue at Rs 14,784-crore in FY23

The consolidated revenue of the company grew by 11.4% YoY to Rs 14,784-crore in FY23, driven by 32.6% sales volume growth in packaging (flexible and aseptic). The company’s earnings before interest, depreciation and amortisation, currency devaluation/fluctuation gain/loss, and tax (EBITDA) for FY23 is Rs 2,068-crore. Profit After Tax (PAT) in FY23 stood at Rs 480.7-crore.

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

Ashok Chaturvedi, chairman and managing director, UFlex, said, “In FY23, UFlex continued its growth momentum and achieved the highest-ever revenue of Rs 14,784-crore. 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.”

The company is currently setting up PET chip resin manufacturing facilities in India and Egypt. Given the size and scale of the PET films business globally, it was imperative that the company integrate backward to manufacture its own PET chips.

Its BOPET film plant at Dharwad, Karnataka, with a capacity of 45,000-mt per annum, was commissioned on March 23.

Meanwhile, the company’s 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 added, “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 a continued focus on recycling and sustainability.”

Rajesh Bhatia, Group CFO, UFlex, said, “In FY23, despite all the challenges, UFlex achieved even greater heights and clocked its highest-ever revenue. 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 and 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.”