Uflex Ltd., India’s leading player in flexible packaging and solutions, recently disclosed its financial results for the third quarter of the financial year. Despite facing some headwinds, the company showed resilience to report unaudited cumulative earnings of Rs. 33,454 million.
UFlex Unveils
While these figures represent a slight year-on-year decline of 1.3% and 4.3%, respectively, compared to the previous quarter, it is worth noting that adjusted EBITDA stood at Rs. 4,258 million, representing a slight decrease of 0.4% quarter-on-quarter but an appreciable growth rate of 4.3% year-on-year.
The improved EBITDA margin of 12.7% further highlights the company’s ability to deal with challenges.
At its recent board meeting held on February 10, 2024, the board of directors of Uflex Limited approved and adopted the unaudited consolidated financial results for the quarter ended December 31, 2023. The Company’s performance was driven by gains in sales volume and a diversified portfolio of underwriting
In terms of volumes, the third quarter of FY24 recorded a consolidated sales volume of 147,770 MTPA, despite a slight decline of 2.0% quarter over quarter but showing a notable growth of 5.8% year on year. Despite the decline in revenue and EBITDA, the company managed to maintain growth in EBITDA margin, increasing 70 basis points quarter over quarter and 50 basis points year-over-year to 12.7%.
Going deeper into the numbers, Uflex’s standalone performance also showed promise. 65,332 MTPA sales volume of Rs. 16,589 million, the company showed steady growth. Standalone: EBITDA of Rs. 1,715 million, with an EBITDA margin of 10.3% and a PAT of Rs. 237 million shares.
Despite facing global geopolitical uncertainties, including conflicts in the Red Sea, Israel-Palestine, Russia, and Ukraine, Uflex was able to navigate these challenges, but the company felt some impact from the currency price decline and loss of results.
In addition, the turmoil in the global supply chain, which led to disputes and increased shipping costs, posed a challenge.
Looking ahead, Uflex is optimistic about its long-term strategy. The company’s commitment to local manufacturing and reliability amid a disrupted supply chain underscores its resilience.
Mr. Ashok Chaturvedi, Chairman and Managing Director, Uflex Group, expressed confidence in the prospects of the company, stressing the importance of strategic growth and value creation.
Despite the challenges, UFlex Limited’s performance in the third quarter of FY24 reflects its ability to adapt and thrive in a dynamic business environment. For information, visit www.uflexltd.com