Looking at 25% growth after expansion: UFlex

UFlex reported a good set of Q3 results with a strong performance in the flexible packaging and engineering segment. The company has announced a capacity expansion for its packaging films segment.

To discuss its earnings and the outlook for the rest of the year Rajesh Bhatia, Group President (Finance & Accounts) & CFO of the company spoke to CNBC-TV18. "This capex that we have announced it is only for the packaging films, we are getting into this investment after a gap of 16 years on the packaging films side so the current capacities utilisation has now been 100 and above for the last so many years.”

"However, we were doing expansion in our overseas business and we were consolidating our aseptic packaging investments so now is the right time and this FY21 we will see a huge increase in our EBITDA from the previous year’s levels. FY22 onwards next couple of years we are looking at about 25 percent kind of growth given that a whole lot of capacities have come on stream," he added.