Thank you. On behalf of Arihant Capital, I welcome you all to Q2 and H1 of FY26 earnings conference call of UFlex Limited.

Hope you all are safe and healthy. From UFlex management team, we have with us Mr.

Rajesh Bhatia, Group President and CFO, Mr. Surajit Pal, Vice President and Head of IR.

I now hand over the floor to the management for their opening remarks, and then we would have the Q&A session. Without further ado, over to you, sir.

Thank you, Ashwath. Good afternoon, ladies and gentlemen.

Thank you for joining us today for Q2 FY26 earnings conference call of UFlex Limited. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, or other estimates about future events.

These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risk and uncertainties that could cause our actual results to differ materially from what is expressed or implied.

I would now request Mr. Rajesh Bhatia, Group President and CFO, for his opening remarks, following which, we will open the forum for question and answer session.

Over to you, sir.

Thank you, Surajit, and welcome to all the participants for the Q2 earning call of UFlex. At the outset, I'd like to say that it's been a decent quarter considering that, and H1 considering that there are many headwinds in the H1, during the H1 period, which are like tariff, GST transition, extended monsoon.

Overall, if I say, on a, while the quarter has been flat in terms of revenue and EBITDA, we have, on an H1 basis, the sales are up by 3%, the EBITDA is up 4%, and obviously the PAT is up much higher by about 150% H1 PAT, largely because of, the impact of the currency translation losses we had in the YoY period. We have achieved in terms of the performance again, the the highest ever volumes at our aseptic packaging units during the H1 period.

We have a 5.5% growth on a YoY basis. As we've said earlier, this is there's a limitation currently, which got over in October, whereby we commissioned our extended capacity to 12 billion packs a year, which will start, sort of yielding results as the season sets in in in from January onwards.

We we'll definitely have a better volumes in the last quarter of FY26 and going forward in FY27 in the flexi- in the aseptic packaging business. We have also announced a new packaging film line at Dharwad, which was as part of our commitment when we had gone and set up, the the first line in Dharwad.

Our agreement with the state government whereby we were entitled to certain, tax concessions was that for a certain investment level of investment, which we have to, sort of fulfill. We are adding another line over there.

It This time, this is a BOPP facility with a capacity of 54,000 tonnes a year. We are also quite advanced in terms of commissioning of our three other projects.

One is that PET recycling in in Noida. While I'm on the subject, I'd like to state that, as per the latest guidelines now, because, not much capacity has come up, the government has said that, whatever is the deficiency in this year, the industry will have to make it up in the next 3 years.

They'll have to maintain the the the the levels, prescribed levels, in those respective years. FY26, they've been given an exemption that, you whatever was your liability in FY26 with respect to, the recycled using the recycled content, so that has been deferred to the deferred for the next 3 years, and the subsequent years you still have to maintain.

I think this was necessitated because, the capacity addition what the industry actually requires for for to comply with the guidelines is still not on the ground, and that's why the government took that view and, sort of extended the timelines for such compliance. They've not moved by a year.

They've only said that the the compliance remains, but, okay, you can do it in the next years. The next year, apart from that year's requirements, you'll also have to comply with the past deficiency.

In FY27 and FY28, I think they'll have to everybody will have to comply the deficiency what they what they couldn't do in FY26. Egypt aseptic packaging will probably happen in towards end of 20 FY26 or Q1 of FY27.

Is the WPP at at Mexico. As we've said, the top line addition with the new investments at an optimum capacity utilization levels for the four new projects, which include two of aseptic and one WPP and another PET recycling, is expected to be around 3,000-odd crores with an EBITDA of about 500 crores at a at a decent capacity utilization levels.

Another notable thing that, what has happened in India in H1 and Q2, the trend goes that, India is witnessing, much higher level of both BOPET and BOPP imports. Just to give you a perspective, in H1 FY26, the BOPET imports in India are up about 120% YoY, and BOPP imports are up about 100% over the over the FY25 H1.

Even the the exports from India have have come down in Q2. They're down marginally by about 18%, and BOPP is also down 22%, largely because of the fact that BOPP capacity which got which got impacted by the fire at at at a major player's facility in the western part of the western part of the country.

That's the industry, sort of scenario in India. In Europe also, we have seen that the exports which were earlier happening into US, so, because of the US tariffs and all that, some of the exports have been diverted from China and other Southeast Asia countries to to Europe.

That's why our performance in the European territory in terms of the production and sales have been affected in in Q2. In India also, the because of the tariff, the because of that 25% additional oil-related tariff, we've been impacted, because from India we export packaging material to to USA.

We have, have had an impact of that, which we are partially we have been able to pass on to the customer, but, still the passing on the full 50% was not possible. We currently have to bear the burnt till the time, this duty of 25% on account of oil gets waived, which is likely to happen within this month.

That's what our information is. I think when, with with the tariff being in place rightfully, rightful tariffs being in place, the GST transition has happened.

In the GST transition what has happened is, because we are a B2B player, our customers would not order fresh this So so they themselves are busy, sort of ensuring that their existing stocks are sold, and they were not ordering new prints, because, you have to print the MRPs on the on the packs. They there there was lag impact there.

All those things are now in place, and with the with the, direct and indirect cut tax cuts, I think the consumption will get a definitely a boost in the in the quarters to come by. This temporary transition impact which got hit us in Q2, I think is is is not going to be there in H2 or or subsequent subsequent years.

On the on the guidance for the rest of the FY26, I think because we had earlier given guidance of a 10% revenue increase, we'll have to relook at that, and, at all probability, it looks like that there'll be a 5% revenue increase for the year as a as a whole, with an EBITDA of about 1,800 to 1,850 crore kind of a range this year. I think this is fairly achievable even based on a proportionate H1 sales and EBITDA numbers.

Hopefully, with the with the new capacities coming on stream, because the debt has already been more or less been added, with the new capacities coming on stream and incremental revenue will also give us more much higher EBITDA. We'll we will be having that impact in FY27 and and beyond.

That in nutshell is is the performance for the quarter and the outlook, for the H2 and FY27. I think we can, anybody having any questions, I think we head happy to address them.

Good evening, sir.

Good evening, Aman ji.

Sir, my question regarding this liquid packaging. I think this quarter, compared to previous quarter, the utilization level was quite low, because in the last quarter, I think our plant has run around 136%, and this time it is around 99%.

Again, we have increased the capacity by 50%. Whether you are confident that we will run our plant at 100% utilization with the increased capacity?

Sonthalia ji, aap to itne achhe se jaante ho company ko, to but still, I'll be able to answer this question. I've always said that the season for this is from January to, you can say, at best middle of August, okay?

The seasonality does set in, and even in the previous years, we have seen Q1 versus Q2, the volumes were always down because the seasonality sets in. When I say that, for the H1 period, we have run 5.4% higher sales volume and we produce that much more also, it should be taken in that perspective.

If you compare Q1 versus Q2, yes, you'll see a dip, but that dip is historic, is always there, and is because of the seasonality aspect.

No, just I want to know actually ki in the off-season, whether we can plan something that in that period we can export more and get that extra business instead of running it at lower capacity utilization?

That we do always, but seasonality also sets in those territories as well. When it's a winter time for us, some of the territories we have in mind, we are not there today yet, like Europe and all.

North America. Today we have to take care of their seasonalities as well as our seasonalities.

This is the best that we can achieve under the current dispensation.

Sir, how is the margin in the BOPET and BOPP at the moment, because I think because of the import, there is significant drop in the margin. That imported quantity has already extinguished or it is still there, and the margins are still very down?

Nahi, BOPET mein abhi margins badhe hain. To BOPET mein abhi gross level pe kareeb 20% margin hai India mein, aur isme I'm talking about the base film, not the value-added and all that, plain vanilla, aur 30 BOPP mein kareeb 30% margin hai.

To

ye pichhle quarter mein kitna

tha? Pichhle quarter mein kam tha, because imports were happening, the domestic players had no option but to also reduce their prices, so that has checked in the imports.

This quarter, from that perspective, will be better.

Sir, ye jo US, China is dumping their capacity in the international market, in the European market and other markets, since our lot of capacity is overseas, to hum log isko kis tarah se face karenge aur kis tarah se margin hamare better honge, kyunki ye to poore world mein dump kar rahe hain?

I think that impact we have seen only in the last quarter. Earlier, we were not seeing that huge impact of China or other Southeast Asian countries exporting to Europe.

Thoda sa because of the US tariffs things also, that thing would have got changed a bit. To thoda abhi time lagega usme as to what is the clear position that will ultimately emerge out of this, as this has been a very, very recent phenomenon only.

Our volumes have definitely suffered in Egypt, and because the Egypt's export to Europe have been impacted. Beyond a point, we know that this is temporary.

We don't want to sort of get into a price war with matching with imports. I think there's no point doing that.

Sir, the margins are getting better or it is less than the previous quarter at the moment?

At the moment, Europe continues to suffer because of the higher imports.

What about US and that Mexico market?

US

US mein koi export nahi ho raha hai because of the tariff. Nahi, wahan local jo hum logo ka plant

hai? Haan, wo to theek kar rahe hain.

Wo to I think their volumes are not impacted. Rather Mexico is quarter mein has seen better volumes in this quarter.

That is making reasonable profit?

Yeah. They are okay.

Those businesses are okay.

Aur sir, ye jo hamare teen project hain jo WPP ka plant hai, Egypt ka Asepto hai, and that recycling. To do you think that by March, all these three plants will be operational?

Mere ko

thoda

doubt hai

ji abhi.

Teeno time

overrun hone ke chances hain? Thoda sa time badhega aage.

Even actually recycling plant pe bhi time

lagega kya? Haan, recycling plant ho jayega March tak, but maine bataya na jaise ki usme jo government ki nayi guidelines aayi hain, uske anusaar, abhi jo brand owners hain, unko jyada chinta karne ki jarurat nahi hai, kyunki agar is saal mein kuch deficiency hai unki, wo agle 3 saal mein wo usko make up kar sakte hain.

To usse koi impact nahi aa raha hai current year mein.

Nahi, to usse kya hum logo ke orders kam ho jayenge recycling plant mein? Obviously, obviously,

obviously. Recycling ke, because kya ho

gaya na brand ki ye ab ho jayegi agar mere ko sarkar ne 3 saal ka aur samay de diya hai, to main isko agle saal dekh lunga, koi nahi. To this recycling business will suffer for the next 2-3 years?

Nahi, dekhiye,

hamara aana

hi March tak tha. Agar agle saal impact hota, to issue hota.

Ab kya agle saal Agle saal achha ho jayega kya? Agle saal to better ho jayega na ulta, kyunki aapko pichhle saal ka bhi bharna hai usme.

Okay. That is why mere ko

samajh nahi aaya tha. Agle saal ka to better rahega prospect, kyunki aaj to

capacity hi

nahi hai. March tak agar capacity aati hai, to we go to FY27.

To FY27 mein to koi bhi unko exemption nahi hai. To FY27 mein unko FY27 ka bhi karna hai aur agar FY26 ka shortfall hai, wo bhi karna hai.

Haan, ye ho sakta hai ki wo kyunki unko 3 saal de diye hain aur usme ye nahi likha ki 3 saal mein aapko one-third, one-third, one-third hi deficiency karni hai, to ho sakta hai wo aur jyada kheench lein wo deficiency.

Sir, ek important

cheez samajhna tha

jaise ki

bottle-grade recycling chip banane wale to mere khayal se bahut saare mil jayenge, lekin ye jo packaging grade ka hai jo hum logo ka ek brand hai shayad Asclepius bol kar ke hai, wo cheez banane wale India mein aur koi competitor hai kya hum logo ke? Sorry, main aapka prashn nahi samajh paya.

Nahi, jaise bottle recycle karke chip banane wale to bahut jan hain, lekin hum log jo recycle karke jo packaging grade ka flexible packaging ke liye jo banate hain, uska aur bhi koi hain kya competitor hamare? 100% hain ji.

100% hain, kyunki ultimately

agar bottle ko use karke aapne pehle chip banaya aur chip se fir aapne film banaya, to wo to hamare alawa aur bhi players hain aur aayenge bhi, because agar recycling is made mandatory, to sabko yahi karna padega ji. Kyunki mere khayal se food grade ke jo licenses mere khayal se bahut kam ko mila hua hai, usme se jaise hum logo ko mila hua hai jo US FDA jo hai.

Aman ji, aaj na evolution stage hai. Isme cheezein settle hone mein thoda sa time lagega, sabko mil jayenge

ji.

Koi usme kisi ko pehle mil jayega, kisi ko baad mein mil jayega, but government has to ensure that if they are putting a stipulation ki aapko itne pratishat recycle karna hai, they will ensure that. Otherwise, brand owners kahan se karenge usko recycle agar material hi available nahi hai, food grade, FSSAI approved?

To hoga sabka, kisi ka pehle hoga, kisi ka baad mein hoga.

Sir, last question ye debt

ko lekar ke. Sir, ye debt to already bahut achha-khaasa badh chuka hai aur fir naya ek plant aa raha hai 700 crore ka, to ye debt ke upar mein management ka koi planning hai kam karne ka aage?

Dekhiye, debt ka abhi jo existing debt hai, uske upar mein abhi hamare ko kareeb ₹950 crore ka FY27 tak aur debt lagega to complete these projects.

Right.

Okay?

Chalo, ek ye answer de dete hain inka, ma'am, so that he doesn't have to fall in queue. Ye jo inhone poochha hai, let's answer this.

kareeb ₹1,000 crore, Aman ji, aur additional debt aayega FY27 tak, aur ₹1,500 crore ka existing debt repay hoga till March '27

jo hamari schedule repayment hai. To net mein ₹500 crore kam hoga loan?

Net mein ₹500 crore FY27 ki balance sheet mein kam hoga.

Sir. Thank you.

Good evening, sir. Sir, what is the situation in terms of upcoming capacity in India for both BOPET and BOPP films?

To

BOPP mein to kuch capacities FY27 mein aane ki, aur I think two plants are coming. BOPET mein FY28 mein, I think there's one plant which is coming.

Aur abhi because of industry, you know that one of the largest player in industry was impacted by a very unfortunate incident. I think with that capacity now going off the table and being met through higher imports, eventually, I think there'll be more announcements in that space from the other industry players also who will like to fill up that capacity.

Okay. Sir, BOPP mein the two plants that are coming, any idea how much would be the total capacity which is coming in?

1 lakh.

Sorry?

1 lakh ton.

1 lakh ton. Okay.

1 lakh ton per annum.

Understood, sir. Last question, sir.

Any visibility on when heavy import from China both in India as well as Europe, by when that situation can ease? Kab tak relief milega, or to all players for that matter?

Dekhiye, BOPP mein kyunki shortage hai, wo usme relief abhi nahi milega. PET mein because the imports and the domestic prices currently what's there, everybody who was importing has burnt his hands.

I don't think so that there'll be further tendency for the people to import, because they know that if they import, and by the time the import comes, the domestic players would have adjusted their prices. Today also, whatever they imported in the last quarter, they've been sitting on losses on that, because the domestic producers had to cut their prices to mitigate that threat.

To BOPET mein ruk jayega. BOPP mein because shortage hai, to wo chalta rahega abhi till the time the new capacities come in India.

Okay. Understood.

Thank you so much, sir.

You talked about the challenges last quarter, but if we look at the results of two comparable companies, one from the film side and one from the packaging side, Huhtamaki from the packaging and Cosmo First in the film side, both have shown much better results than what you have done. Can you explain the difference, why is it so?

Okay. Let's first compare with Cosmo.

Cosmo has one line of BOPET, and rest their entire capacity is the BOPP films,

okay?

They were the largest beneficiary of this unfortunate incident in the western

On the BOPP side, yeah.

On the BOPP, they were the largest beneficiary. As I've said that BOPP currently the margins are around 30%, while the PET margins are about 20%.

Obviously, because of the short supply, which is being met by way of an imports, they continue to get the maximum benefit, because they have a much higher capacity, and one of the new facilities came on stream around that period when there was a fire. They actually had an existing capacity, and their new capacity also came on to stream.

They've been the very clear beneficiaries of this short-fall position today. We have more of a BOPET capacity than the BOPP capacity.

Our BOPP capacity in India is 33,000 tonnes, sorry, 31,200 tonnes in India versus our PET capacity of 110,000 tonnes in India. Okay.

Okay? The mix is adverse for you.

Sorry?

The mix is adverse for you compared to Cosmo.

This adversity can at times depends on the situation also, na? Agar unki PET lines destroy ho jaati, to we would have been the major beneficiary of this.

Vis-a-vis Huhtamaki, I think with a new management in the last 1 year, they restructured their whole business. They have, sort of stopped some of the loss-making units.

They had a very wide spread out, they've closed some of those facilities and all. I think there is a one-off impact which was due to come in this.

If you ask us that, have they gained on volumes or have they gained on a price parameters better than us? No.

They've only done restructuring in terms of closing the unviable unit and compressing their production facilities into a few core manufacturing units only.

Fine. The next question is this year you are projecting a 5% growth for the whole year, 5% revenue growth.

Can we expect around 10% growth the next year at least?

Next year, I think we can expect 10% growth. Depends on the projects which come on stream, and the timing of that is quite key.

I think we still have time to get to that. Closer we are to commissioning of those facilities, I think we'll be able to give you more precise guidance.

Can we expect that the margin low we had seen last quarter, from that level it will be better this quarter onwards?

This quarter, so that is where we've said that the total EBITDA for the whole year, we now looking at 1,800 to 1,850 crore range only.

Which was the case last year also.

Last year was 1,700-odd crores. This year may be slightly better.

We had earlier said that we are expecting in the range of 2,000 to 2,100-odd crores the EBITDA driven by a 10% volume increase. Looking at the things the way they are now, I think we have no option but to revise our guidance to a top line of 5% growth and an EBITDA of 1,800 to 1,850 crores range.

As of now, you're holding back any projection for the next year?

Yes. We'll get to that either at the end of the next quarter's earning call.

I think that will be more appropriate. We'll have more insight as to how the projects are taking shape.

As of now, all your four projects will be operational by first quarter of next year?

Yes, I think Q1 should see definitely all the projects getting commissioned. Out of four, one is already commissioned, the India aseptic facility.

Now we have three remaining. For recycling, I think surely it will get commissioned by March.

The other two, WPP and aseptic in Egypt, may go to Q1 FY27.

Okay. On the recycling front, you expect good capacity utilization from next year onwards, because your plant is coming anyway in March next year?

Yes, definitely.

Okay.

Thank you.

go ahead. Namaskar, sir, and thank you for the opportunity.

Sir, I hope I'm audible, sir?

Yes, Saket. You are audible.

Thank you. Sir, firstly, if you could just give some color on how the utilization levels have been for the first half across all the plants across the geographies?

Humne diya hai presentation mein. I think you can have a look.

Agar aap

India ka dekhein, to India ka pichhla quarter aur ye quarter same hi hai. Dubai is better.

Egypt is, no, just 1 second. Just give me a moment.

Page number bata dijiye,

sir, main dekh lunga. Kahan aa raha hai?

Nahi, ye FY25 kab ka hai? Galat hai na?

Okay.

We have on a year-on-year basis, we have seen India is better, Dubai is better, Egypt, as I said earlier, is down on a YoY basis. Nigeria on a Q-on-Q basis is up, but little bit down on YoY basis.

Then we have Poland down, Hungary down, and Mexico is up. On an overall basis, on a YoY basis, we are minus 6% in production volume in the packaging film business.

Right, sir. Sir, when we look at the employee cost also and the other cost-efficiency measures which will directly flow to the bottom line, have we structured out any such project of cost efficiency, because we are a very large organization across several geographies, there are several costs which may be rationalized in these times when the going is tough?

Any project on which we are working wherein we are looking to lower the cost or improve efficiency? We keep on doing that as an ongoing exercise.

Usme koi bhi doubt nahi hai. We keep on doing that.

There is no specific one-off task that we take to sort of do that. We pretty well aware of what are the manpower cost.

At times there are manpower, even if the project is come delayed in commissioning, and you've hired the people based on a particular target of commissioning, but now you have to hold on to them, no? You can't say if my project is delayed by 3 to 6 months, I'll ask the people to go and again hire them.

That's not going to happen. We pretty much aware of where we can save costs, and that's a ongoing exercise that we undertake.

Sir, on the duty protection,

yeah, please,

yeah.

Except that there is always more focus on as to how to increase the top line, how to improve the margins, which are always in any business are needle movers as compared to cutting some of the costs here and there and demotivating the whole organization. I've seen in many organizations people try to cut costs in the travel, in this, and all that.

I think if we focus on the right energies in a growing business, you'll ultimately feel better off. Yes, there were headwinds which we all know during this first half of the year.

I think with all of them are now behind us, we'll see better. If we all believe that in India with the recent what the government has done, there'll be a consumption boost, we as a packaging industry will have our share in that growth as well.

Right, sir. Sir, and secondly, on the duty protection part, since we are seeing a lot of dumping from various geographies into the country, you mentioned about BOPP as well as for BOPET also significant quantity in percentage terms.

Are we looking for any duty protection of an ADD or I think we are moving through the association on the same or what is the current steps

we are taking? None of the businesses are impacted in such a way that they are bleeding.

I think the government looks at such kind of a request only when the industry is down in dumps. It's not.

I think there is hopefully that time should not come. Currently, I don't think so there's anything that can happen.

Otherwise, recently you would have seen last few days, the government has taken lot of polymer items from a QCO. There is no more BIS required for import of those items into the company.

That's more a relief to China being given, and that impacts large refiners and all that where POY, PSF, all of those businesses which were protected because of DS norms compliance, may see a higher level of imports, because that QCO order has been withdrawn across a very large gamut of the items.

Okay. Does that affect anyway in the packaging industry or the film industry also?

Nahi, hamare liye to better hoga, raw material sasta hoga, so. Sasta ho jayega.

Sir.

I'm not aware of that. Okay.

What is this pertaining to, sir? This is pertaining to the raw material, that if you can explain for the benefit?

There are a lot of polymers like POY, PSF, then even your PTA, MEG, which you had to have BIS compliance certification, they have all been taken off the list, which means that from here on, there is no BIS certification required when you import those items. It's this not been done only for China.

This is done for all the countries. There'll be increased competition at least in the polymer industry from the imports.

Last two points, sir. About this new plant, the BOPP plant, I think so you were mentioning about that we had some obligation to set up this plant.

What are the exact metrics for the same? I think so it's a ₹750 crore project that we are undergoing.

What would be the timeline for the same and how?

Ye aayega aapka FY28 mein. Achha.

Dharwad mein

hi aayega. There are some benefits being given under the state policy when you meet a certain investment criterion.

We'll get those benefits for this facility. Again,

sir, the demand metrics works for us to add an existing line. Means we do not have a larger proportion of BOPP.

That is also a correct understanding?

Dekhiye, BOPP ki South India mein ek hi line hai shayad. To BOPP ki South India mein jo travel kar raha tha, wo west se jyada travel kar raha tha south mein.

Aur west ki kafi capacity because of that fire has got impacted. Wo kab aayegi, wo replenish hogi, kaise hoga and all that, with all those question marks around, I think the other industry players may, based on their sort of business prudence, may take investment decisions.

Right, sahi hai, sir.

Thank you, sir, for the all elaborate answer. Only point for us or investor is that debt number which Sonthalia sir was also mentioning ki taking that also into account, any progressive way by which do we have anything in the consideration where we can lower the debt faster, or we will follow that, I think so, some 2.5 debt to EBITDA some number you have given earlier, that is what we would follow the path going ahead?

I definitely don't feel ji that 2.5x is an achievable number, that will have to be predicated upon ki, as I said, by FY27, if there are no further investment proposals, the debt gets down by 500 crores from a current level of the debt, which is ₹7,750 crore, the net debt. If you take that in the context of the additional EBITDA that we can make from this, if we have an EBITDA of 2,500, 2,600 crore, and the debt is 7,300-odd crores divided by 2,600 crore, then we are looking at a 2.8x.

Now, as you do the business and as the opportunities come, there may be more investments decisions in the future as well. To based on the current metrics, I think we can look at around close to three numbers when the EBITDA from these new investment also kicks in.

Sir. Sir, just to take the industry prospect, this is the nature of doing film business that we need to carry this amount of debt along and growth is only be possible from the debt-oriented way.

That is how the globally also the film manufacturers do business, because in other players we see that the debt numbers are not exactly that high. Just to understand, sir, kya hamara structure hi aisa hai ki perpetual debt mein rehna padega agar grow karna hai to?

Nahi, hum log to kuch na kuch koshish karte rehte hain equity bhi kar lein. To agar wo ho jata hai, to fir, there may be other plans around that if that money also gets raised.

Aapko maloom hai ki hum log 3 saal pehle bhi list karne ka kar rahe the. Abhi bhi market we are in regular touch with our bankers in US.

Abhi bhi

for the public markets, they are saying they are not giving us the confidence. Also because of the fact that when you were working on those numbers, your EBITDA in those years in your international business was at a highest level.

Now, thereafter, the business performance has suffered because of multiple reasons in the global part of the balance sheets, chahe wo Nigeria ka devaluation ho, chahe. The fact of the matter is at a PAT level, those businesses are still, because those businesses are only packaging films business what we were taking to the market.

That time, their profitability, their multiples, everything was different. Today they are different.

We'll do at an opportune time. Kuch na kuch to, there'll be opportunities in the next couple of years.

Then that will be a good opportunity to have cash on the balance sheet and use that cash to do further investments rather than taking further debt on to the balance sheet.

For the standalone level, sir, taking into account, although we have not seen any fresh offering from the film segment, though there are lot of fundraising exercise happening across the country, the IPO market, the follow-on public market all are at lifetime high. Does it warrant any merit for us to go for equity raising or at the company level here projecting of what we are projecting in terms of the profitability graphs 2 years down the line, and does film industry command

P/E

multiples? Ji, sir.

Company level pe I don't think so that's going to happen given the current shareholding level of the promoter family. At a subsidiary level, this may be a possibility, but I can only say up to this.

Beyond that, there is

Yes, sir. I can understand.

Yes, sir, even that is a distant possibility, not that it is a turant hone ka nahi hai. That you have already alluded to.

Yeah.

Correct, sir. Hope for better times, sir, next time when we speak.

Thanks,

yeah. Thank you.

All the best, sir. Thank you.

Haan ji.

Thank you again, sir, for the detailed presentation and all the requirements for investor education, that awareness part is very well conducted. Thanks to both Surajit sir and Pandey ji and Bhatia ji for taking care of your investors in this aspect at least.

Thank you ji.

Thank you, saab.

Thank you.

Sir, actually, there are a lot of new capacities are coming in BOPP film. Again, we are setting up a BOPP film by 2028, and as per my understanding that lots and lots of capacity is coming.

By the time our capacity comes, there are fair chances that there will be very high overcapacity in the market. Whether it is viable to set up a plant?

Aman ji, aap ye maante ho ki ek bahut badi capacity ka gap hua hai India mein, okay? To obviously people will try to fill up that capacity.

Ab kaun pehle kar le, kaun baad mein kar le, the point is hum log isme kafi efficient hain lagane mein, to ho sakta hai ki hum pehle kar lein ya koi doosra pehle kar le, 3 mahine ka gap ho. Yes, I can only say that it's not only us, it is the other people also who are seeing this opportunity and will put up the capacities.

Growth bhi to ho raha hai na. Ek to growth bhi to aapko fulfill karna padega na.

If there's some business where you have to stay relevant, you don't have to make your market share drop, you have to look at. You can't time the market.

Dekhiye, kabhi bhi aap time karoge na ki jab best time hoga kisi industry mein invest karne ka when the returns are high. We've seen in COVID times.

BOPET mein bahut jyada returns thi. Sabne paise lagaye, sabne invest kiya, and look where are we now.

In FY24 where we were, uske baad to fir bhi '25 mein better hua hai aur '26 mein bhi theek hai. Ye to cycles ek industry mein aate rahenge.

Aap isko time bilkul nahi kar sakte ji. Jaise stock market mein aapko bolte hain na SIP karo taaki wo jo fluctuations hain unse aap bache raho, to aise hi depending on ki industry mein kya capacity utilization level chal raha hai.

Uss tarah se unfortunately pichhli baar kya hua BOPET mein, BOPET after the lows in '15, '16, dheere-dheere capacity utilization across industry level badhta chala gaya aur logo ne plants announce nahi kiye the when the capacity utilization levels across the industry had even improved to 80% above. Uske baad COVID aa gaya, to because the utilization levels were already high, people made extraordinary profits those couple of years.

Uske baad mein sab log with the money already earned, everybody came to install new capacities. To I think jo SIP wala halat hai na, wahi hamare business mein bhi hai.

If you want to remain relevant and retain your market share, to aapko wait nahi karna ki aaj market achha hai to main invest karun. Rather I always feel ki aapko tab invest karna chahiye market mein jab aapki industry mein aur koi invest na kar raha ho aur jab wo cycle change hoga, jab tak aap 2-3 saal mein plant lagaoge, you will have the gains.

Now, we had the gains. Humne jo plant lagaye, chahe wo Nigeria mein lagaya, chahe wo humne Poland mein lagaya, chahe wo humne Hungary mein lagaya, wo wahan timing hamari theek ho gayi kyunki COVID aa gaya aur ekdam se demand-supply ka jo gap create hua because of your supply chain getting disruptions, ekdam se wo benefit mil gaya humein un pehle 2 saal mein.

To we had a head start to this. Humne ye thoda socha tha ki wo head start aise milega.

Wo to ho gaya fortunately. To isme jyada bahut jyada soch-vichar ka nahi hai.

Aapko continuously in the line of business where you are, you have to remain relevant and you have to protect your market share ji. Sir,

ye BOPET ka overcapacity kab tak

khatam hone ki umeed hai? Yaar, aapko ye jyada pata hai mere se.

Aap mere ko balki educate karo. Ispe main to another 2 years, I think.

It will take another 2 years. Sir, ye hum log loan ko restructure nahi kar sakte?

I'm happy to be guided by you on this, ji, because you have more insight.

Nahi, nahi, sir. Sir, whether we can restructure our loan to reduce our rate of interest?

Rate of interest to apne aap kam hote ja rahe hain aur kya karna hai, sir? Wo to saare floating rate of interest hain na.

Wo to apne aap kam ho rahe hain. Chahe wo dollar ke hon, chahe wo India ke ho.

Sir. Thank you.

Thank you for joining us today. We appreciate your time, questions, and continued support.

The transcript of this call will be made available shortly on our website at www.uflexltd.com. We value this platform as it enables us to engage meaningfully with our investors and stakeholders, and look forward to keeping you updated on our progress in the coming quarters.

Wishing you all a pleasant day ahead.

Thank you.