Uflex (500148) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw strong growth in sales volume and revenue, driven by packaging films, international expansion, and high capacity utilization in aseptic packaging, with consolidated revenue reaching INR 3,853 crore.

• Standalone revenue rose 19.3% YoY to INR 1,970 crore, with packaging films revenue up 39% and sales volume up 4.2%.

• Aseptic packaging business achieved 17.6% volume growth YoY, with capacity expansion to 12 billion packs expected by December and commissioning of a facility in Egypt in FY26.

• Net loss after tax for Q2 FY25 was ₹10,668 lakhs, compared to a net profit of ₹10,978 lakhs in Q2 FY24, mainly due to exceptional currency losses.

• Sustainability and innovation are key priorities, with investments in AI, recycling, and new product development.

Financial highlights

• Q2 FY25 consolidated revenue was INR 3,853 crore (+13.7% YoY); H1 FY25 revenue at INR 7,535.7 crore (+13% YoY).

• Normalized consolidated EBITDA for Q2 was INR 438 crore (+7.4% YoY), with a margin of 11.4%; standalone EBITDA rose to INR 215 crore.

• Net debt as of September 30, 2024, was about INR 5,800 crore; net debt/normalized EBITDA at 3.20x.

• Q2 FY25 EPS was (8.95), impacted by exceptional currency losses; consolidated net loss after tax for Q2 FY25 was ₹10,668 lakhs.

• Standalone net profit after tax for Q2 FY25 was ₹3,774 lakhs, up from ₹2,089 lakhs in Q2 FY24.

Outlook and guidance

• Enhanced aseptic packaging capacity in India expected to reach 80-85% utilization in Q1 post-expansion, with further international capacity in Egypt planned for FY26.

• Management targets normalized EBITDA of INR 2,000 crore for the year, with H2 EBITDA margin guidance at 13-13.5%.

• Major capex projects in Egypt and Mexico are on track, with a focus on sustainability and innovation.

• Management remains confident that no material tax liability will arise from ongoing tax proceedings.