Q3 FY25 highlights (standalone)
❖ 64,984 MTPA sales volume during the quarter.
❖ Net revenue of Rs. 19,549 million.
❖ EBITDA of Rs. 2,538 million.
❖ EBITDA margin at 13.0%.
❖ PAT of Rs. 577 million.
❖ PAT margin at 3.0%.
9M FY25 highlights (standalone)
❖ 197,561 MTPA sales volume.
❖ Net revenue of Rs. 57,979 million.
❖ EBITDA of Rs. 6,922 million.
❖ EBITDA margin at 11.9%.
❖ PAT of Rs. 1,432 million.
❖ PAT margin at 2.5%.
STIMULATING PERFORMANCE: PACKAGING FILMS REMAIN A LEADING EDGE
UFlex Limited (BSE: 500148, NSE: UFLEX), India’s largest integrated flexible packaging and solutions company, reported third-quarter fiscal 2025 unaudited consolidated net revenue of Rs. 37,742 million. Normalized EBITDA for the quarter was Rs. 5,207 million and normalized EBITDA margin was at 13.8%. Profit before exceptional items and tax for the quarter was Rs. 1,473 million.
The Board of Directors, in its meeting held today, has approved and taken on record the unaudited consolidated financial results of UFlex Limited and its subsidiaries for the quarter and nine months ended December 31, 2024
Q3FY25: Better Asset Utilisation, Portfolio Mix, Forex Boost Profitability
Building on the solid foundation laid in the first half of FY25, the third quarter has further demonstrated the sustainability and inherent strength of UFlex’s business model, delivering a solid performance during this period. The capacity utilisation in Packaging films increased by 10.9% YoY and 12.9% QoQ in Q3 FY25. Profit after tax (PAT) benefited by currency translation gain of Rs 257 million in Q3 FY25, compared to an exceptional currency translation loss of Rs 1,001 million in Q3 FY24.
Consolidated sales volume grew by 6.3% YoY in Q3 FY25, driven by healthy performance in the packaging films and packaging segment. Total sales volume in Q3 FY25 was 157,036 MT, consisting of 78.5% packaging films and 21.5% packaging. Total revenues increased by 12.8% YoY to Rs. 37,742 million in Q3 FY25, up from Rs. 33,454 million in Q3 FY24. Normalized EBITDA increased by 18.8% QoQ and 22.3% YoY basis to Rs. 5,207 million in Q3 FY25 compared to Rs. 4,258 million in Q3 FY24. Normalized EBITDA margin expanded by 250 bps QoQ and 110 bps YoY to 13.8% in Q3 FY25 from 12.7% in Q3 FY24.
In FY25 YTD, our consolidated sales volume grew by 9.2% YoY to 482,352 MT, up from 441,769 MT in FY24 YTD. The sales volume consisted of 78% packaging films and 22% packaging business. Total revenues increased by 13.0% YoY to Rs. 113,100 million, up from Rs. 100,131 million in FY24 YTD. Normalized EBITDA increased by 23.3% YoY basis to Rs. 14,242 million compared to Rs. 11,553 million in FY24 YTD. Normalized EBITDA margin expanded by 110 bps YoY to 12.6% from 11.5% in FY24 YTD.
In Q3 FY25, revenue from operations accounted for 99% of total income, with India contributing the largest share at 46%. The Middle East & Africa and Europe contributed 16.2% and 16.5% respectively, while the Americas contributed 18.4%. The remaining 1.8% came from other regions, reflecting a well-diversified revenue mix across key global markets.
Overall, the quarter reflects the company’s ability to drive growth across key segments while optimizing capacity utilization to strengthen sales, increase profitability, and expand operating margins.
The quarter saw a resurgence in food inflation in India, pushing the CPI (Consumer Price Index, source: MOSPI, GOI) to a 10-month high of 6.21% in October 2024, while the CFPI (Consumer Food Price Index, source: MOSPI, GOI) peaked at 10.87%. Since then, inflation has moderated, with the CFPI easing to 8.39% and the CPI dropping to 5.22% by December 2024. However, the combined impact of softening Industrial Production (IIP), weakened Private Final Consumption Expenditure (PFCE), and persistent inflationary pressures have strained household disposable income and consequential spending. This has dampened consumer sentiment, moderated demand, and reduced consumer spending in the FMCG (Fast-Moving Consumer Goods) and Food & Beverage (F&B) segments. The Indian FMCG sector has faced sluggish urban growth over the past three quarters due to high food inflation and living costs, while rural markets continued to outpace urban demand consistently in the last four quarters.
The Indian FMCG sector has faced sluggish urban growth over the past three quarters due to high food inflation and living costs, while rural markets continued to outpace urban demand consistently in the last four quarters.
UFlex remains optimistic about a revival in FMCG consumption growth, driven by higher household disposable income resulting from significant tax reliefs and rural development investments outlined in the FY26 Budget. By emphasizing rural infrastructure, manufacturing, and consumer spending, the three key drivers of the FMCG sector, the GOI budget aims to foster long-term and sustainable growth.
The expected rise in FMCG consumption, particularly for packaged products, will increase demand for flexible packaging SKUs (stock keeping units) essential for FMCG products storage. Consequently, the growing need for flexible packaging will further drive demand for key raw materials such as packaging films, inks, adhesives, printing cylinders, packaging machines, and holography. This cascading effect will spur growth across the entire packaging value chain landscape.
The expected rise in FMCG consumption, particularly for packaged products, will increase demand for flexible packaging SKUs (stock keeping units) essential for FMCG products storage. Consequently, the growing need for flexible packaging will further drive demand for key raw materials such as packaging films, inks, adhesives, printing cylinders, packaging machines, and holography. This cascading effect will spur growth across the entire packaging value chain landscape.
Consolidated sales volume grew by 6.3% YoY in Q3 FY25, driven by healthy performance in the packaging films and packaging segment. Total sales volume in Q3 FY25 was 157,036 MT, consisting of 78.5% packaging films and 21.5% packaging. Total revenues increased by 12.8% YoY to Rs. 37,742 million in Q3 FY25, up from Rs. 33,454 million in Q3 FY24. Normalized EBITDA increased by 18.8% QoQ and 22.3% YoY basis to Rs. 5,207 million in Q3 FY25 compared to Rs. 4,258 million in Q3 FY24. Normalized EBITDA margin expanded by 250 bps QoQ and 110 bps YoY to 13.8% in Q3 FY25 from 12.7% in Q3 FY24.
In FY25 YTD, our consolidated sales volume grew by 9.2% YoY to 482,352 MT, up from 441,769 MT in FY24 YTD. The sales volume consisted of 78% packaging films and 22% packaging business. Total revenues increased by 13.0% YoY to Rs. 113,100 million, up from Rs. 100,131 million in FY24 YTD. Normalized EBITDA increased by 23.3% YoY basis to Rs. 14,242 million compared to Rs. 11,553 million in FY24 YTD. Normalized EBITDA margin expanded by 110 bps YoY to 12.6% from 11.5% in FY24 YTD.
In Q3 FY25, revenue from operations accounted for 99% of total income, with India contributing the largest share at 46%. The Middle East & Africa and Europe contributed 16.2% and 16.5% respectively, while the Americas contributed 18.4%. The remaining 1.8% came from other regions, reflecting a well-diversified revenue mix across key global markets.
Overall, the quarter reflects the company’s ability to drive growth across key segments while optimizing capacity utilization to strengthen sales, increase profitability, and expand operating margins.The expected rise in FMCG consumption, particularly for packaged products, will increase demand for flexible packaging SKUs (stock keeping units) essential for FMCG products storage. Consequently, the growing need for flexible packaging will further drive demand for key raw materials such as packaging films, inks, adhesives, printing cylinders, packaging machines, and holography. This cascading effect will spur growth across the entire packaging value chain landscape.
Moreover, The RBI has reduced the benchmark repo rate by 25 basis points (bps) to 6.25% from 6.5%. This was the first reduction in repo rate in nearly five years. A repo rate cut is generally pro-growth, encouraging borrowings, investment and consumer spending. Banks can borrow at a cheaper rate, leading to lower interest rates on loans for businesses and individuals. Cheaper borrowings will further boost economic activity with strong fiscal encouragement f or private investments, resulting in higher disposable income and C
