UFLEX Limited (NSE: UFLEX) Q1 2026 Earnings Call dated Aug. 18, 2025
Corporate Participants:
Unidentified Speaker
Surajit Pal — Vice President, Head of Investor Relations
Rajesh Bhatia — Group President, Finance and Accounts and Chief Financial Officer
Analysts:
Unidentified Participant
Sachin Bobade — Analyst
Chirag Singhal — Analyst
Aman Kumar — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Uflex Limited Q1 FY26 earnings conference call hosted by Dalit Capital Markets Private Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sachin Boubade from Dalit Capital Markets Private Limited. Thank you. And over to you sir.
Sachin Bobade — Analyst
Thank you Anushpa. On behalf of Dalat Capital, I welcome you all to Q1FY26 earnings conference call of Uflex Limited. Hope you all are staying safe and healthy. From Uflex management team we have with us Mr. Rajesh Bhatia, Group President and Chief Financial Officer and Mr. Surjit Pal, Vice Chairman Head of Investor Relations. Now I hand the floor to the management for their opening remarks and then we would have question and answer session. Over to you sir.
Surajit Pal — Vice President, Head of Investor Relations
Thank you Sachin. Good afternoon ladies and gentlemen. Thank you for joining us today for the Q1 FY26 earnings conference call of E Flex Limited. Let me draw your attention to the fact that on this call our discussion will include such 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 risks 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 analysis sessions. Over to you sir.
Rajesh Bhatia — Group President, Finance and Accounts and Chief Financial Officer
Hello. Good afternoon to everybody who’s on the call. Let me just give you brief about how the quarter went and then we’ll have the Q and A sessions. So as you would have seen from the numbers that you know, the revenues are up by about 6.5%. Close to about 4000 odd crores. 3922 crores for the quarter driven by a volume increase of 7.9% on a year on year basis. And the packaging bit has grown by about 11.7% on a year, on year basis. And volumes, I’m talking about the volumes and the packaging films has grown by about 6.8% during the Q1 on a YOY basis.
This volume number does not include the pet resin production which is happening at our Panipat and the Egypt plant because otherwise the numbers would have not been comparable. When I Talk about the 7.9% sales volume increase that excludes, you know, any pet raisin sales which are happening largely from India on a pet raisin production, I can share some numbers with you, which is in India we achieved a capacity utilization of 97% during the quarter and in Egypt we achieved close to about 75% capacity utilization which is very good for the first quarter of operations. Key highlights for the quarter are that, you know, this quarter, towards the end, you know, around the third week of May, we saw, you know, we unfortunately a very large player in the packaging film industry had an accident at its plant and that changed the industry dynamics a bit.
So the exports from India to Europe have come down and the local availability of the Bopet and as well as the Bopp films has also gone down with the result that, you know, the demand supply is more balanced now, which has led to better margins post this event happening. A full reflection of that you will see in the subsequent quarters, you know, the additional margins which are, which are there because of this supply side not being available. Now having said that, we’ve also seen an increase in the import volumes also. But still, I would say in the overall context, while the BOPET sees a very marginal increase, the Bopp part has seen a substantial increase and you know, the gross value addition has, has risen considerably during, during the quarter post this event in terms of the, you know, the other markets for us, the export, you know, the overseas markets, you know, because we’ve had this huge ongoing issue of the tariffs.
So, you know, a lot of back and forth happening. Whether it was Mexico or, you know, Canada or some of the other countries. Our advantage is that, you know, we are present in 8, 9 different geographies and that gives us a bit of a flexibility as to if we are exporting to us, which is the best in terms of the lowest impact because of the tariffs imposed by the US and happy to state that, you know, our large part of our exports from Mexico to us are covered under USMCA and there is a nil duty as of now.
And that will ultimately, if that remains so that will ultimately give us an edge over the other countries who were selling to us because everybody Else is facing some sort of tariff on the exports to, on the exports to us. There is a bit of a negative news on India that, you know, the export, the tariffs announced by us on Indian products are higher than expected, especially the additional, you know, the secondary tariff of 25%. I think we pretty sure that that part will be taken care of. And even if there’s no resolution found before the 27th, the deadline of 27, we feel that, you know, that should be that date will be extended to so that, you know, whatever US and Ukraine and Russia wants to achieve to end this war, you know, so time will be, time allowance will be there to, you know, take care of any delays therein.
The other part of the tariff of 25% is, is also there. So one of the packaging we export from India to usa so that will get impacted by this. So but if the tariffs are about between 15 to 20% range final tariffs on this also, I think we will be at a level playing field with the other countries who are supplying to us. And that will, you know, sort of put us almost at par with the other countries in terms of, you know, the guidance for this year. I think there are the CAPEX plans what we had in terms of expanding the, you know, the aseptic packaging capacity from 7 to 12 billion packs that has got some delayed.
We were expecting that to start from January, the commencement of the season for 2025 calendar. But that has not happened. And despite that we had as I said that we had on a yoy basis 18% extra volume in this quarter for liquid packaging. So that should happen anytime soon. The latest could be in H2 early part of the H2 but you know we could have it early than that. Also the aseptic packaging Greenfield expansion of 12 billion packs at Egypt is also likely to get commissioned in FY26. So is the WBP bags which are used for the pet food industry is also at an advanced stage of commissioning.
And then we have final one which is our recycling facility in Noida where we are expecting that given the government initiative that 30% of the recycled content in the rigid packaging and 10% in the flexible packaging so that recycling capacity will come very handy to take care of the requirement of the products emanating from this comment guidelines. On the whole the margin for this quarter has been slightly lower. Same period last year we had a 12.7% EBITDA margin but this quarter it is 12% again the India business has done well but somehow because of the tariff uncertainties and because a Lot of companies had, you know, stocked their material requirements well in advance.
We’ve seen some impact of that and hopefully this is just a passing phase and you know, this will get sorted out in the next couple of quarters. As to what are the final tariff policies of the, of the U.S. i don’t, and as I said earlier, if there are tariffs on other countries and not on Mexico, obviously we will definitely see our margins improving overall in our US business because we may have some headroom to increase our prices in US and still get the benefit of the USMCA to export to us. Again, one of the key features for this quarter is that we don’t have any unforeseen in terms of exceptional losses for any foreign exchange.
Last quarter same period was about 180 odd crores. But this quarter, you know, we don’t have any such exceptional losses. So we expecting that, you know, next year we’ll have the benefit of all these new investments getting commissioned and by reasonable estimate we expect that, you know, these can add up to 3,000 crore of additional revenues at a reasonable 85%, you know, capacity utilization levels and will should give us about 600 crores of. Add about 600 crores of EBITDA. Because here we’re talking about aseptic, we’re talking about WPP bags, we are talking about the recycling biz which are likely to generate in higher EBITDA than the conventional packaging films where you look at about 11 to 13% kind of a margin range depending on where you are in terms of the cycle in the business.
But these products definitely, you know, we’ve been telling you that even in India in aseptic packaging our margins are much better than, you know, margins what are there in the packaging or the packaging films industry. So overall I think a decent quarter and we are looking to consolidate this year. And then next year when all these investments are available for producing then we go to add a substantial amount of revenues as well as the profitability to our business. I think that is what there has been some increase in debt also during this quarter. As I said that, you know the ongoing capex which has been approved by the board, the total amount is about 2000 odd crores out of which as on 30th of June we’ve already spent about 1100 odd crores.
So balance 900 crore is what is expected to be spent in the current year as well as in the Q1 of FY27. So then that will take care of our, you know, the investments that we’ve already announced to the market. I think that is what I wanted to convey. So India, you know, the market dynamics definitely have changed post that unfortunate loss at one of the very large players. And so that will also change the dynamics in the export markets as well. We clearly seeing that the volumes from India into the European export markets and the US export markets will come down, which will give you better pricing power in those jurisdictions.
And India of course will definitely see better margins going forward on a consistent basis because, you know, a very large capacity is now off the table, which will take time to build. That’s what you know, I had to convey during this investors call. And we are open to any Q and A. Whatever questions you have, we will try to reply them to the best possible. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Chirag Singhal from First Water Fund. Please proceed.
Chirag Singhal
My question. A couple of questions for mind. First this, yeah, except for expansion, this seems to be getting delayed now. The expected commissioning is in H2 and I think you mentioned estimated outlay of $24 million and that is already been incurred. So what are the challenges that we are facing in commissioning and are you expecting further delay?
Rajesh Bhatia
No, we are not. See ultimately the idea was if we can complete it by December 24 or early part of January, you will get the benefit of 25 calendar season. Now if that is not happening, then whether it happens today or it happens two months later, this is not going to be a very substantial difference in terms of, you know what the volumes or the selling. Because now in the off season we not constrained for the capacity. You are constrained for the capacity only in the peak period, which is say from January to August. And so now any benefit of this will come only in the next calendar. So 26 calendar onward from January onwards it should start so we can, we are close to achieving a commercial run for this and it should happen quickly, more quickly than that.
But the message that I am going to convey is even if it is gets, you know, say done tomorrow itself, it’s not give you any additional revenues and the profitability.
Chirag Singhal
So for the full full year, FY26, what is your guidance on total volumes in asepto?
Rajesh Bhatia
Asepto in the. We had earlier given a guidance of about 10 billion packs. Okay. So in the Q1 we have achieved about 2.3 billion packs, which is April, May, June. So I think we will look at somewhere around eight, eight and a half billion packs now. Nine. Between. Between eight and a half to nine.
Chirag Singhal
Okay, understood. Now my second question is on the. You have mentioned. So I’m on this capacity utilization slide. And I can see that, you know, in couple of regions we have the capacity utilization has dropped on a sequential basis. So in Dubai, Nigeria and Poland we have seen and even Mexico we have seen a sequential drop in the capacity utilization. So if you could highlight the key reasons and for the full year, how do you see the overall capacity utilization across all geographies?
Rajesh Bhatia
So I think as you rightly mentioned, these three are, you know, have not performed as well on a sequential basis. So Nigeria is the worst impacted where the impact is because of, you know, the tariff being put by us. Nigeria has finally come on a 19% tariff basis. And earlier it was, you know, when they had us had put, you know, similar reciprocal duties on each country. Each country they were at 10%. So I think because US and Mexican, both production units are not able to cater to the demand in the U.S. in the North America and the South America market.
So this business will pitch in. But we still trying to see as to where we can optimize this. You know, like for example, in Egypt there is a 10% duty exporting to us. So I think eventually when everything will get, you know, sort of more settled, we see at that point in time about Nigeria. But clearly this quarter Nigeria underperformed because US had already stocked well in advance. Our customers had also stocked well in advance. And then this duty came by virtue of which we decided to just keep the things a bit low during while this all gets settled down.
Poland has typically been impacted because of exports happening from India. And as I said that, you know, from June onwards this trend has reversed a bit. In June, the exports from India into Europe were much lesser. And that impact will come in the subsequent quarters. And we think that will give us some pricing power in Europe. The third is Dubai. Now Dubai is not much. There’s no significant impact as such. It could be that the plant may be under a short shut down during a plant shutdown during this period and all that. That would be the only reason.
But there is no specific reason for Dubai because Dubai sells its products only in Middle East. So there is nothing as such. But look at something, you know, Hungary has done well, you know, as compared to, compared to sequentially as well as on a yoy basis India has done well and India is expected to do better in the coming quarters as well. So Egypt has done better in this quarter on a sequential basis. So I think overall Nigeria will get sorted and Poland will get sorted in in the next couple of quarters overall.
Chirag Singhal
For what kind of production volume I should work with. So in this quarter you have done total 1 like 27,900 tons in the films and in the previous quarter it was a similar number. So for the full year for spinning, for the filling division, what is the total production volume that I should work with?
Rajesh Bhatia
Somewhere around 132 something per quarter.
Chirag Singhal
132 per quarter. Got it. That is it from my end. Thanks for answering the question. I’ll get back and make you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question you may press star and 1. The next question is from the line of aman Kumar from AK securities. Please proceed.
Aman Kumar
Yeah. Good evening Mr. Bhatia.
Rajesh Bhatia
Good evening.
Aman Kumar
My question, my question related to BOPB margin in Mexico and Hungary. Since I think a lot of import was happening in Europe from India. So after this fire in India in the gender plant, do we expect that the dumping from India will come down and the margins in Mexico and Hungary will. Mexico not. Sorry, sorry. Egypt and Hungary will be better going forward.
Rajesh Bhatia
So India exports and they are happening only from only to Europe. Okay, so India is not exporting to Egypt at all. So I don’t know where did that information is coming.
Aman Kumar
No, no, I think from Egypt. I think we were exporting to the, that is confined to Egypt only or.
Rajesh Bhatia
Exports to Europe and from India there are exports to Europe. So with this unfortunate incident, the exports to Europe in the month of June versus the month of May have have gone down. So I think they are likely to go down in the subsequent months as well. So let’s see the impact of that in the current and the next quarter. But definitely this will give some pricing power to Europe.
Aman Kumar
When this over capacity situation in BOPET will get sober all over the world. I think there is over capacity not in India, but it’s overseas also.
Rajesh Bhatia
Overseas in the specific jurisdictions. You know, there is no significant mismatch. It’s only that because there is a significant mismatch is there in India. So India is exporting to these countries and with the, with the rupee depreciating against Euro I think so that is again helping the Indian exporters to, to Drive better margins while exporting and then keeping the demand supply equilibrium balanced in India. So you know, before you know any meaningful impact of the demand supply balancing could be could be seen.
Aman Kumar
Okay, next question regarding related to this flexible packaging business. So after long time I think we are seeing a good turnover growth and is there so margins be better going forward.
Rajesh Bhatia
So this quarter for flexible packaging business the volume grew by about 7.4% on a Y o y basis. For liquid packaging as I said they grew by 18% and holographic films they grew by about 5% but that would not have any substance substantial business. So the volume growth in the packaging flexible packaging business is good and the margins have also been better in this quarter on a yoy basis. So hopefully that momentum is there. And now you know, if we with the new announcements by Hon. Prime Minister that you know they lower the GST slabs and there is increase in increased demand for the food and other consumables and all that.
So obviously it will impact the packaging demand as well. So hopefully you know we’ll see a better demand for this. But you know, having said that in the flexible packaging, you know we don’t have, we’ve not done any investment in the last few years. So in terms of, you know what we can do in terms of additional volumes there may be very limited. Maybe then the strategy would be to move up the value chain and reduce your exposure on the low value at added products and all that and do more pouches and other products, similar other products rather than doing the roll form and all that.
But we don’t have much capacity over there which we can utilize to improve our volumes, revenues and profitability.
Aman Kumar
So there is a very lot of clarity is there in the recycling business. So whether we will see significant upstick in this business going forward. Because 40,000 is a reasonable quantity. But I don’t think it’s a very major quantity. So. Where we see this business to.
Rajesh Bhatia
40,000, 40,000 is just an initial number to test the water and to see how serious the regulations are in terms of implementation. And you know these sort of paramount policy things take certain time to stabilize and you know, then you know the results are seen. 30% may or thus percent flexible may mix Karna so flexible may thus percent come mixture actually purchase percent because flexible may because you have bopet, you have poly, you have bopp. So other packaging may 8 kilo pet. So total dai Kiloki packaging. So impact category because recycling because government.
But having said that then there are companies who are already Taking you know action in terms of finalizing their strategy as to you know how do they want to achieve this and all that. But end of the year we have the production capability and by the time the things get more crystallized in terms of how the government reacts to any underperformance in the current year because in the current year because there is not much of the product also available. So the companies can also say you know the product was not available locally so we couldn’t do this and all that.
This is. But this is a sustainable business end of the day but it is going to be there and this will become a formidable business for the industry?
Aman Kumar
And for Uflex also?
Rajesh Bhatia
Obviously for U Flex also it will become a formidable business.
Aman Kumar
And so do you think that this BOPET margin now things will improve here onwards?
Rajesh Bhatia
Margins may, India may improve but India may. We are seeing higher imports from Southeast Asia and China also. So I think that keeps the prices in checks in check currently I think.
Aman Kumar
I think they will think twice before importing any puppet out Doppel do you.
Rajesh Bhatia
Think is it right, right over there, you know the industry. So I think other certainty traders. You. Know if there’s any merit so that will give price advantage to the local manufacturers for sure. But better as you said bottom out. So I would say bottom out but this was checked by a higher imports in this quarter from Southeast Asia and China.
Aman Kumar
And sir, one last question that BIS kill the industry. Whether industries asking the government to implement BIS in packaging films.
Rajesh Bhatia
Industry is doing all that can be done to ensure that you know the local industry remains viable. And so they’ll do everything, everything, don’t worry about it.
Aman Kumar
Okay sir, thanks a lot from this.
operator
Thank you. We take the next question from the line of Saket Kapoor from Kapoor and Co. Please proceed.
Saket Kapoor
Namaskar sir and thank you for the opportunity. Firstly sir, we have mentioned about this virgin pet chips business and we have outlined some capacities for Egypt and Indian capacities at Panipat. So firstly if you could just explain is it the only the EPR part of the story which we are playing through this segment and what is the revenue contribution going ahead when. When does when these will act will be running at full utilization levels.
Rajesh Bhatia
So two things over here, you know they were. They were initially you know planned during the COVID period. Later part of the COVID period when the demand supply situation was so bad that you know getting the raw material pet chips for you know our packaging films was becoming a very, very challenging thing. What had happened was during the COVID period so, so so in the industry structure if you see, you know all those people who make you know, raisin for the pet bottle they have all some surplus capacity where which they want to when optimized using they produce, you know, the film grade pet chips also.
Now when the demand for the bottles also went up during the COVID period so they didn’t have this surplus available. And that is the time, you know players like us who didn’t have any capacity, internal capacity for this raw material we started suffering badly in terms of availability as well as in terms of the price. So that’s when we decided that you know we are a very formidable player. We are globally number one or number two and you know we just can’t leave business to the market so we have to have a better handle on our raw material.
And so that is where we set up a plant in India and then in Egypt. Now we also knew that you know, when you are producing at these plants so since most of the capacity is going to be utilized internally it will not add to any revenues but it will add to your profitability. It will also give you a certainty of the raw material quality because earlier you were procuring from various sources whichever was the cheapest and quickly available. So that would have given more certainty to this business. So that was the whole intention. But in India we also kept a provision that if we want to convert these into a bottle grade chips also so we have a provision in the plant for doing that and depending on the market prices bottle grade chips, better margin mil rahe so apnea film we buy this raw material from the market it and produce the bottle grade so that we get better margins over this so ye dynamics situation better margin milk or bottle grade chips? Bottle grade.
So ISI plant what we are saying is because we have a capacity to make bottle grade chips or recycled chips 70, 70% virgin chips or 30% recycled chips mixing and all that.
Saket Kapoor
Margin profile may be improvement and EPR program being smooth at 18,000 metric 10 kg CPP plant in Mexico that will ramp up for quarter one and two. So in terms of its revenue contribution what should we look at on an annual basis? And also that we have spoken about Capex and commissioning of I think to four projects about the Egypt one debottle making at then the WPP for Mexico and already you have spoken about the Noida the full benefit H2 may full credit contribution. What kind of revenue addition are we expecting from these capex when they are streamlined?
Rajesh Bhatia
So I think I had already said that in my call so Expansion benefit from January onwards so Agarham January, January February, March 8 billion packs a month 2.3 billion packs January February March expansion which is a season time also benefit Turnover profitability benefit FY27 Mehi or Joe Asaktik Egypt may plant time product approval manufacturing facility set up so definitely export quality but extra time because you know the product May we’ve seen in the past that it takes a bit of a time but yes we’ll be ready to serve the markets from in FY27 WPP Amara recycling capacity utilization levels or product established Having said that the total planned capex for all these four investments is about 2000 odd crores and we’ve already spent about 1100 crores as up to 30th of June.
Saket Kapoor
The last point what you mentioned.
Rajesh Bhatia
On a revenue side and said that potential top line or EBITDA about potential in subchar projects.
Saket Kapoor
Total CAPEX 2000 crore top line at peak utilization 3000 and EBITDA at 20% translates to 600 crores that is what’s the match of this okay margins and all pay interest because 1200 we have already spent and balanced 800 will be spent within the next two quarters only so the the net debt to EBITDA.
Rajesh Bhatia
Is interest because the interest that you incur on the borrowings taken for this this all gets capitalized as part of the project cost but debt number.
Saket Kapoor
But again if we take the roadmap going ahead what are the outline outlining after this since this capex and all were envisaged earlier and now and IRR were also worked out so now going ahead say from 2000 the next financial year how should the debt trajectory should look like mean whether this 4.1 where it will go down or where it will be for the next financial year. On an existing EBITDA of 1900 odd crores total debt 7300 so 7300 crores divided by purchase 2.92 I am saying Mera scheduled repayment we have Terra or other projects projects so with the new.
Rajesh Bhatia
With the new project I’m getting commissioned and the revenues and the profitability kick in we will. We will surely be under 3.
Saket Kapoor
We’ll be going down to 3?
Rajesh Bhatia
Yes.
Saket Kapoor
Sir after opening remark if you could just give me firstly the operating landscape in terms of. I think so Lord I think you have spoken by other players also how the flim segment margins moved up and then because of some import they have now again trending lower so taking those things into play out post the TAD event in the month of end of May. How are things currently planned out for our flim business segment in terms of the contribution margins or per kg EBITDA per kg.
Rajesh Bhatia
So what I am saying is two things. One is India and other is overseas. In India after this event, clearly the market dynamics have changed for the better. More better for the Bopp players. But even for the pet players this became better also. But later this was checked by a higher imports from Southeast Asia and China. And as you know, there is it’s a known fact that these traders have incurred losses because the domestic players also adjusted their prices accordingly so that, you know, the impact of the capacity which is now not available in India will be seen in the medium term.
For sure we see more in the more profound in the Bopp and less profound in the pet industry because of imports happening now simultaneously. If we also link it to the global thing now, while India story was different because of this incident. That’s how the market dynamics change. In the overseas market the dynamics change because of the tariff by the US and with the domestic incident, the export of the packaging films from India to Europe. Europe have come down already in the month of June and July. And if they keep on coming down, we’ll definitely see a better pricing in the Europe market, in the US markets because there was before the in anticipation of the tariff, the customers had already, you know, stocked the films and all that.
So we saw, you know, hesitation on the customers to book to give more orders till they are clear that you know as to how the tariffs are going to settle. So there has been an unsettling impact because of the tariffs. And that is why in the quarter the demand in the North American market remained a bit of a mutant. I also said that we still have an advantage because we produce films in Mexico and our exports from Mexico to US are very substantial. Whatever Mexico produces, 70% is exported into the North America market largely to US.
And if there are duties on all other nations, obviously it will put us give us an advantage and we will have scope for better margins when we are exporting from Mexico to US. But you know, this has to settle down over the next two quarters. Only then you know the things will be the final plans will be before all of us.
Saket Kapoor
Right? Sir, if we look at the P L part, I just conclude also P L when we look at the nature of our other operating income, if you could just explain what what are the major key components and how are these other operating income are generated. And also sir, when we compare June 24th versus June 25th what kind of. I think the volume volume and you have given volume and the revenue increase percentage is good. But the efficiency part in terms of whether power and fuel or employee cost, everything has gone up higher than what the incremental revenue has been.
So if what where have we. Where have we slipping on these fronts, sir? Or cash other operating income component and employee cost, power, fuel cost, everything is moved up significantly.
Rajesh Bhatia
So other operating income largely is the. Is a business income only they say export incentives, business scrap generate sales. So it is very much part of the operational income. Only I have not gone through you know, as to the rise in the other expenses proportionate to the you know, sort of the higher revenues as well as the profitability. But because you know, to a very large extent if the market dynamics are also playing so obviously you will find that you know, if the revenues have come down or if the profitability is lower and you measure those costs in relation to these two factors, they will look you know, way higher as compared to to the comparison period.
But that does not mean that you know you can reduce those costs just like that local factors. So maybe employee cost becomes these sort of expenses are mostly you know, fixed or semi fixed in nature only. And they yes, when you work out the percentage percentages or per ton and all that you will find it a bit higher. But more or less you know, unless you structurally feel that your business you have excess manpower or your manpower is because or if you’ve done a project which which where you have hired the manpower but abuse capacity, utilization.
All those factors you have to take in your stride. I don’t think so that you know, we keep on reviewing our manpower from time to time as to what is the cost and what are the other things but nothing to worry about on all those sectors.
Saket Kapoor
So road map that that trajectory still hold ground. Post the exits of the first quarter in terms of the difference margins their realization. How are those things outlined current year in terms of the revenue trajectory trajectory the margins trajectory post the exit of the quarter one how confident are we that given the current business environment we will be able to meet those trajectory as outlined earlier? So this EBITDA margin or the EBITDA which we have done for the Q1 how sustainable or how are the market factors contributing to the sustainability of the thing? If you could just give us some more color on the Same.
Rajesh Bhatia
Last year first quarter May Hamne grow Kia Revenue 6.4% Revenue to come to those to come close to that 10% revenue number. But largely it will be the Pricing game. So hopefully and you know Q4 Q1 Q4 you can say about 0.7 billion packs for the quarter. 0.5 to 0.7 billion pack for the quarter value and all that. Obviously with the incidents which have happened towards the fag end of the Q1 will drive the volumes and the prices better in the next three quarters. So hopefully we should be able to achieve achieve that.
Saket Kapoor
It will mainly depends on the film segment realization and its contribution margin. So who suspects we are on track post the exit of what the June quarter and what factors affected our.
Rajesh Bhatia
Q1 versus setback. But we will achieve that in the next three quarters. That is what we are hopeful. Realization. Both Bopp and globally. Sir segment may further capacity addition
Saket Kapoor
Remaining 3/4. May it’s. I’m asking about how are the global global capacity addition.
Rajesh Bhatia
SRF Then you have one or two other players who are adding Bopp in India. So Bopp so I think. Is also coming up soon.
Saket Kapoor
Okay. Okay. You know is not supporting us and all that. I think better than the PET on a gross basis value added depending on the basic film?
Rajesh Bhatia
35% margin over the raw material cost in the Bopp.
Saket Kapoor
Right. And lastly this single pellet solution significance or press release method. If I if I just take your attention page Number from page number 1414 onwards product wise mentioned Kia Chemicals Flex Coat and then UV let what are we trying to explain out of these these few slides in terms of how our profitability and the business incremental business. I think so 4, 5 slides we have mentioned wherein we have mentioned about special properties and all those stuff. But.
Rajesh Bhatia
There are product capability things that we are telling you basically to make you understand that you know we are not dominant company. We are evolving company products. We remain one of the best players in the industry. Now having said that single palette 30% mix or recycled better product manufacturer. And also if he gets a product in which There is a 70% virgin material and 30% recycled content it will work better for him otherwise. So we are offering this to our customers single pallet source where you will get a product prefix the pre mix thing.
Saket Kapoor
Correct for investors. I think so. For our side it is only how that now the debt trajectory shapes of going ahead. And I think so when we started conversating to one and a half years earlier mentioned about some low hanging fruit which we were eyeing to capture or if it’s registered online. And if you could just comment where are we in getting those low hanging fruit for the investing community kind of if any comment any comment one to.
Rajesh Bhatia
One I think I have no contact. What what you are saying on the call.
Saket Kapoor
In the call he was. He had mentioned about. I think maybe I. I may be incorrect also.
Rajesh Bhatia
No, you. So that is what I’m saying. I have no recollection of that. So Surajit is the best person to talk to and if he is not able to give you an answer then you know we can always engage. This is what I’m trying.
Saket Kapoor
We hope sir for value creation exercise for shareholders that is not exactly happening. So that was the reason why my question was. And that’s all from my side. Thank you for all the elaborate discussion and all. Only one suggestion is that when the presentation is uploaded if that could be done a day before the call that is. That will suffice. Lot of things, not a lot of effort goes into the presentation where kudos to Manoji Register for preparing a very exhaustive report. So we provide us ample time to go through those also 40 minutes are not sufficient.
That is not doing justice to the. Same. Positioning. And I. I am. I’m very very very grateful to the team that that goes and work upon it. So let. That’s all from my side that I. I have spoken enough and thank you sir for giving me the extended opportunity for putting forward my request. Hope we have someone as requested that somebody from the promoter also joining the call and listening to investors feedback and giving their input. If anything we have requested earlier also in the team next lineup or maybe once during the year if somebody from the promoter team also participates and answers or listen to the investors and analysts that would give us.
That would be a confidence boosting measure also and that that goes well in the investing circle also. My. My humble feedback sir. If that would be deliberate or we’ll.
Rajesh Bhatia
We’ll surely work towards this and see if that can be. That can happen.
Saket Kapoor
Thank you. The entire team.
operator
Thank you. As there are no further questions from the participants I would now like to hand the conference over to the management for closing comments.
Rajesh Bhatia
Just one second. 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.euplexlimited.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.
operator
Thank you on behalf of Daulat Capital Markets Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.