Q1 2027 Uflex Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 38% YoY to INR53,972 million, with EBITDA up 92% YoY to INR9,198 million, marking the highest EBITDA in 21 quarters.
- EBITDA margin expanded 480 basis points YoY to 17%, driven by operational efficiency, stronger realizations, and currency tailwinds.
- Overseas operations, particularly in Egypt, Mexico, and Nigeria, contributed 91% of incremental EBITDA, reflecting improved global profitability.
- Strategic capacity expansions are on track: the Noida recycling plant and Mexico WPP bag plant were commissioned, and the Egypt aseptic project is scheduled for FY27.
- Management guided for 35% top-line and EBITDA growth in FY27, with a positive outlook through FY29 driven by new capacities and value-added product focus.
- Overall packaging volumes declined 8.4% YoY due to a strategic shift to high-margin products and softness in aseptic packaging from duty-free imports.
- Aseptic packaging volumes were impacted by aggressive pricing from duty-free imports, particularly from Indonesia, pressuring the segment.
- Europe sales volumes remained flat YoY amid continued pressure from low-priced imports, with demand expected to moderate next quarter.
- Q2 is expected to see some normalization from the exceptionally strong Q1 performance, indicating potential quarter-on-quarter volatility.
- The company faces geopolitical risks, including West Asia crisis and Bab-el-Mandeb flashpoints, which could disrupt shipments and affect results.
Ladies and gentlemen, good day and welcome to the UFLEX Limited Q1 FY27 results conference call hosted by Arihant Capital Markets Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Ashwath Rajan from Arihant Capitals.
Thank you and over to you, sir.
Thank you. Good evening, everyone. On behalf of Arihant Capital Markets, I would like to thank all of you for taking time and joining us on UFlex Q1 FY27 results conference call.
From the company's leadership team, we have with us Mr. Arun Kumar Sharma, President, Finance and Accounts and CFO, and Mr. Surjit Pal, Vice President, Head of Investor Relations. We will open the call with opening remarks by the management, followed by a Q&A session.
I would now like to hand over the call to Mr. Surjit Pal and make the opening remarks. Over to you, sir.
Good
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