UUFlexExecutive Cockpit

Cash 360

The treasury cockpit — 13-week cash, EBITDA-to-cash conversion through the capex year, working-capital unlock, receivables, liquidity and covenant headroom.

UFlex Limited · FY26 (Mar'26, audited consolidated anchor)
India's largest multinational flexible-packaging & solutions company
12,000 employees · 14 plants & units · 9 plant countries
Executive read· the answer, then the moves

Cash is sound at ₹1,231 Cr (≈ 4 weeks cover), but leverage ROSE to 4.35× through the ₹2,044 Cr capex year and ₹717.3 Cr of working capital is trapped in receivables — with more in ~97-day film-stock inventory. Pull DSO from 92d to 75d and sweep OCF to debt as commissioned assets ramp — working capital is the internal funding lever the deleverage plan leans on.

2 of 5 headline metrics improving vs prior · still off target: Operating Cash Flow ₹992 Cr vs ₹1,200 Cr, Cash Conversion Cycle 125d vs 105d, DSO (Days Sales Outstanding) 92d vs 75d

Do now — ranked by urgency
  1. 1
    Leverage rose through the capex cycleAct now
    Why it matters

    Hold FY27 capex ≤ ₹1,400 Cr, sweep OCF to debt as commissioned assets ramp — deleverage is the goal, not the achievement.

    What's driving it
    • Net Debt / EBITDA
    • Signal: Alert
    FYI

    Net debt ₹8,622 Cr = 4.35× EBITDA, up from 3.73× (peak 4.52× in Q3); headroom to the 5.5× ceiling is ~1.15×.

  2. 2
    DSO 92d over 75d targetAct now
    Why it matters

    Each day of DSO ties up ~₹42 Cr of working capital that could fund the FY27 debt paydown.

    What's driving it
    • 95→92d
    • Signal: Threshold
    FYI
    • Debtor days ~92 — working-capital heavy (inventory ~97 days). CPG terms + overseas consolidation stretch the cycle; a real cash lever.
    • Owner: Treasury
  3. 3
    Unlock ₹717.3 Cr by pulling DSO to the 75d targetWatch
    Why it matters

    Every day of DSO above 75d ties up working capital; closing the gap releases ≈ ₹717.3 Cr of one-time cash — the cheapest deleverage there is.

    What's driving it
    • DSO 92d vs 75d target
    • Overdue >60d = ₹700.0 Cr of ₹3,882 Cr AR
    FYI
    • Normalizing laggard business lines to 60d DSO releases ≈ ₹1105.5 Cr
    • Owner: Treasury
  4. 4
    Protect the thin covenant headroom while the capex cycle completesWatch
    Why it matters

    Net debt/EBITDA is 4.35× (net debt ~₹8,630 Cr, ~1.06× equity) — UP from 3.73× and within ₹2,282 Cr of debt capacity to the modeled 5.5× ceiling (headroom ~1.15×). The capex funded visible assets; FY27 must convert them to volume, hold capex ≤ ₹1,400 Cr and sweep OCF to debt.

    What's driving it
    • Leverage 3.73× → 4.35× (peak 4.52× in Q3) vs 5.5× ceiling
    • 13-wk cash trough ₹1,096 Cr vs ₹900 Cr minimum
    FYI
    • Cash ₹1,231 Cr ≈ 4 weeks cover; interest cover ~2.55×
    • OCF ₹992 Cr vs ₹2,044 Cr capex — FCF negative by design this year
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Cash & equivalents
₹1,231 Cr
≈ 4 weeks cover · CRISIL A1+
Operating cash flow
₹992 Cr
vs ₹2,044 Cr capex — FCF negative (build year)
Cash conversion cycle
125d
DSO 92 + DIO 97 − DPO 64
Working-capital unlock
₹717.3 Cr
DSO 92→75d target
Exhibit 1

13-week direct cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. ₹900 Cr minimum. Forecast trough: ₹1,096 Cr.

Above minimum
₹1,231 Cr
Opening cash
₹3,875 Cr
13-wk collections
₹3,985 Cr
13-wk disbursements
₹1,121 Cr
Closing cash
Exhibit 2

EBITDA → Free cash flow

₹1,984 Cr EBITDA converts to ₹992 Cr operating cash flow (50%); ₹2,044 Cr of build-year capex takes FCF to −₹1,052 Cr — deliberate, and the reason net debt rose.

Exhibit 3

Cash collected

Monthly, ₹ Cr.

Cash conversion cycle

Working-capital days

DSO — receivables92d
DIO — inventory97d
DPO — payables (offset)(64d)
Cash conversion cycle125d
Where cash is trapped

Working-capital cash unlock

₹1105.5 Cr

Normalizing laggard business lines to 60-day DSO (the holography / chemicals benchmark) releases ~₹1105.5 Cr one-time.

Flex Films (Global Films)96d
₹896.8 Cr
Flexible Packaging (Laminates & Pouches)74d
₹130.0 Cr
UFlex Engineering & Cylinders88d
₹34.4 Cr
F-TPM / F-WSP (Specialty Films)82d
₹25.3 Cr
Asclepius (90% PCR Film)78d
₹11.8 Cr
Asepto (Aseptic Liquid Packaging)62d
₹7.1 Cr
Collections

AR aging

Total AR ₹3,882 Cr

Current days₹1,750 Cr
1-30 days₹900 Cr
31-60 days₹532 Cr
61-90 days₹420 Cr
90+ days₹280 Cr

Overdue (>60d) = ₹700.0 Cr.

Exhibit 4

Collections priority

Highest DSO first.

AccountRevenueDSOCredit risk
Converters & third-party chips₹3,121 Cr105dHigh
Global CPGs — overseas films (150+ countries)₹6,180 Cr96dMedium
L'Oréal₹330 Cr84dMedium
Mondelēz₹620 Cr82dMedium
P&G₹780 Cr80dLow
PepsiCo₹850 Cr78dLow
Nestlé₹760 Cr76dLow
Exhibit 5

Supplier DPO

Working-capital lever.

SupplierSpendDPOOTIFRisk
PET resin & chips inputs — PTA / MEG (crude-linked)₹3,600 Cr45d93%High
PP granules & specialty polymers (BOPP / CPP / WPP)₹1,500 Cr50d94%Medium
Aluminium foil, metallizing & coating inputs₹900 Cr55d92%Medium
Ocean & inland freight / logistics₹850 Cr42d88%High
Power & fuel (9-country plants)₹739 Cr40d96%Medium
Paperboard & aseptic laminate inputs₹450 Cr48d95%Low
Exhibit 6

Leverage walk vs. covenant — it ROSE

Watch item — headroom is thin

Covenant headroom

Net-debt headroom to 5.5x
₹2,282 Cr
leverage rose 3.73× → 4.35× (peak 4.52×) funding the capex cycle — ~1.15× of headroom to the modeled 5.5× ceiling; FY27 volume-led OCF sweep is the deleverage plan
Net Debt / EBITDA4.3x
DSCR (EBITDA / Debt Service)1.4x
Covenant Headroom1.1x
Cash Collected vs Plan96.0%