Orderbook strong; expect margins to be in the range of 20-22%: UFlex

UFlex is the stock on our radar today, the stock has gone up 26 percent in the last year. CNBC-TV18 spoke to Rajesh Bhatia, Group President - Finance & Accounts & CFO of UFlex to discuss the packaging industry outlook and their business expansion pans.

On margins Bhatia said, “Last quarter we had 18.8 percent EBITDA margins almost, if I were to neutralise the impact of rising input costs, it was working out to about 20 percent. So guidance for the current quarter will be in that range of 20-21 percent neutralising the impact of the higher input costs.”

On expansion he said, “Oderbook is pretty strong, we are looking at orders which will be about 600-650 million packs in a months which translated to almost 100 percent utilisation of even the increased capacity. This new expansion what we are doing on the aseptic is looking very promising and we are quickly wanting to finish all the project related work and move on to the commercial production.”