In its meeting on 13 November 2024, the Board of Directors approved and took on record the unaudited consolidated financial results for UFlex and its subsidiaries for the quarter and half-year ended 30 September 2024. 

The strong growth in the second quarter of fiscal 2025 carried forward the momentum from the previous quarter. Consolidated sales volume grew by 10.9% YoY and 5.9% QoQ. Packaging films (consolidated) sales volume increased by 14.6% YoY and 8.0% QoQ, while packaging (flexible, liquid and holography) sales volume witnessed a marginal decline of 0.7% YoY and 1.4% QoQ.

Continuing the momentum, liquid packaging achieved capacity utilisation of 93.2% in Q2 FY25 vs 82.9% in Q2 FY 24, resulting in sales volume growth of 17.6% YoY. 

The Consumer Price Index (CPI) rose from 3.65% in August to 6.21% in October, while food inflation was 10.87% in October from 5.66% in August 2024 (as per MOSPI, GOI). This persistent rise in inflation has put pressure on disposable income, spending, and overall consumer sentiment, affecting demand in the FMCG and F&B sectors —both of which are key drivers of the flexible packaging demand. 

UFlex, however, witnessed a noticeable shift towards premium and branded products, presenting an opportunity for steady growth. Furthermore, rural demand is pivotal in driving the FMCG demand in FY25. 

Overall, the FMCG sector saw stable demand trends in the September quarter as rural volume growth outpaced urban markets for the third consecutive quarter. 

In the current quarter of fiscal 2025, UFlex delivered its first SpeedPlus25K filling machine with a capacity of 25,000 aseptic liquid cartons per hour and secured a repeat order after its impressive operational performance. Asepto’s SpeedPlus25K high-speed filling machine, combined with an additional 5 billion pack capacity, will enable UFlex to engage a wider range of high-volume customers in India and internationally.

Packaging Films overall production volume increased by 8.2% YoY to 128,880-mt in Q2 FY25, up from 119,109-mt in Q2 FY24. Overall Capacity utilisation rose by 280 basis points YoY, reaching 83.4% in Q2 FY25 compared to 80.6% in Q2 FY24. 

The Packaging films sales volume and revenue demonstrated strong YoY growth, with sales volume increasing by 14.6% and revenue by 23.4%. Overall Packaging film revenue for Q2 FY25 stood at Rs 24,836-million, up from Rs 20,123-million in Q2 FY24. 

Excluding India, packaging films revenue grew by 8.4% YoY and 4.2% QoQ, reaching to Rs 18,843-million in Q2 FY25, compared to Rs 17,389-million in Q2 FY24. 

UFlex India’s packaging films production volume grew by 10.4% YoY and 10.8% QoQ, reflecting strong operational performance. Consequently, the capacity utilisation rose by 750 basis points QoQ and 320 basis points YoY, reaching 77.1% in Q2 FY25, compared to 73.9% in Q2 FY24 and 69.6% in Q1 FY25. Sales volume followed suit, grew by 10.8% YoY and 7.3% QoQ, driven by sustained demand across markets.