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.

On guidance for the aseptic packaging division, he said, "FY22 for the aseptic packaging forgetting the new line which is going to be ready by December of this year we will have close to about Rs 500 crore of the topline and we have healthy EBITDA margins over there in the north of 20 percent."

For the full management interview, watch the video.

(Edited by : Priyanka Rathi)

First Published:Feb 12, 2021 1:05 PM IST