Shares of Uflex, one of India’s leading flexible packaging companies, fell 7% in early trade on February 15, a day after the company reported a loss for the 12th quarter of the 2022-23 financial year.

The company reported a net loss of Rs 850 crore, compared with a profit of Rs 313 crore a year earlier.

At 12:13 pm, Uflex was trading at Rs 483.30 on the National Stock Exchange, down 5.52% from the previous day’s close.

The loss was mainly due to the devaluation of the Egyptian currency, resulting in a loss of Rs 84 crore. In Q3, notional FX losses due to currency depreciation/volatility totalled Rs 236 crore.

Through its wholly-owned subsidiary Flex P Films, the company produces BOPP, CPP and BOPET films at its Egyptian facility.

Rajesh Bhatia, the chief financial officer of Uflex Group, cited the devaluation of the Egyptian currency and rising interest rates due to the Federal Reserve’s real reserve policy as the reasons for the significant financial impact.

Despite Uflex’s challenges in the third quarter, Bhatia said demand for packaging and packaging films in India remains strong.

Uflex’s operating income rose slightly to Rs 3,482.72 crore from Rs 3,463.42 crore in the year-ago period. The increase in revenue was due to higher packaging sales, which rose 34.3% year-on-year.

The company’s earnings before interest, depreciation and amortization, tax and foreign exchange gains and losses also fell to Rs 429 crore from Rs 599 crore a year earlier.