Uflex’s subsidiary to invest $126 million to set up Aseptic packaging facility in Egypt, stock trades higher

Uflex stated that the facility will help the company meet the demand for Aseptic packaging in Egypt, Europe, the Middle East, and East Africa. The company will utilise borrowed and owned funds in order to set up the facility. The packaging facility in Egypt is expected to be installed by September 30, 2025.

In Q1 of FY25, the company reported that its net loss narrowed down to ₹98.4 crore from ₹416.2 crore in the corresponding period last year. The company’s total consolidated revenue for the quarter climbed 12.3% YoY to ₹3,682 crore.

During the quarter, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) were up 45% YoY to ₹440 crore. The EBITDA margin expanded by 270 basis points (bps) to 12% while the net loss margin came in at -2.7%.

In Q1FY25, Uflex’s domestic business contributed 43% to the revenue split compared to 59% in the corresponding period last year. Meanwhile, the international business contributed 57% compared to 41% in the corresponding period last year.

The company’s sales volume for the quarter was up 10.4% YoY to 1,58,022 metric tons. Packaging films comprised 76.9% of the sales volume while packaging accounted for 23.1% of the sales volume.

The company stated that the packaging film business saw an improvement in margins with growth in rural volume and demand. Uflex also saw growth in sales volumes in the USA and Mexico.

Shares of the company have risen by nearly 43.5% since the beginning of the year. The stock has gained over 58% in the past year.