Uflex Posts Loss Of Rs 416 Crore In Q1 FY24

Packaging major Uflex Ltd has posted a consolidated loss after tax of Rs 416 crore in the first quarter ended June 30, 2023 impacted by a change in the Forex Policy of the Central Bank of Nigeria.

The company had posted a consolidated profit after tax of Rs 375 crore in the same quarter last fiscal, Uflex Ltd said in a statement.

The company said it recorded an exceptional loss of Rs 382 crore due to change in the forex policy of the Central Bank of Nigeria in June 2023 which impacted its bottomline.

Consolidated revenue during the quarter under review stood at Rs 3,278 crore, down 19 per cent from the year-ago period, it added.

Total sales volume was at 1.43 lakh tons, down 7.5% year-on-year.

"Globally, the packaging films business is facing headwinds due to high inflation in the US and European regions," UFlex Ltd Chairman and Managing Director Ashok Chaturvedi said.

In India, he said the company has "seen an uptick in demand, and our new CPP and Bopet lines in Dharwad, Karnataka are operational, which resulted in 22% YoY increase in sales volume in the quarter".

UFlex Ltd Group CFO Rajesh Bhatia said the company's continued focus on exports has resulted in 56% YoY increase in exports from India to touch Rs 400 crore.