Packaging firm Uflex which drives 95% of its sales from the food packaging business showcased a strong set of numbers in Q4. Profit was up 162% on YoY basis in Q4FY21, while revenue was up 46% at 2564Cr. EBITDA of the company was up 181% at 439Cr and margins grew from 8.9% to 17.1% YoY.

Uflex Group CFO- Rajesh Bhatia tells ET now that the company has been experiencing good demand. The company witnessed pent-up demand for sachets and pouches led by more packaged products due to more hygiene requirements because of COVID1-19.

New capacities added in later half of FY21 helped volume growth of 44% in Q4FY21 and overall volume growth of 22% for FY21. With new projects capacity expansion, capacity utilization has improved and company expects 20-25% growth in FY22 and beyond. Currently company has huge focus on to reduce the logistics supply chain and get that as short as possible. The company has focused on value-added products and would like to move up the value chain.

On Margins front, Company informs that due to the surge in the raw material prices they expect margins to have some hit. Commenting on the impact of price rise in various commodities, Rajesh says that Crude derivatives price hike is a pass-through commodity for them. In Other Commodity prices, Resin prices were up 30% in Q4FY21 followed by another 7-8% in April May. Polypropylene price increased 17% in Q4FY21 and 10% further jump seen in prices thereafter. But going forward the company expects to offset the raw material price increase impact on margins by good volume growth led by healthy demand.