UPL Q3 results: Net profit rises 12% to Rs 793 crore

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UPL Q3 results: Net profit rises 12% to Rs 793 crore


Mumbai: Agrochemical company, on Friday reported a 12% rise in consolidated net profit at Rs 793 crore during the third quarter of the current fiscal, as against Rs 707 crore during the same period last year on the back of strong agricultural commodity prices.

“We are pleased with the sustained progress reflected in the topline growth and improvement in margins, UPL is confident that its foray into biologicals will soon spawn industry-leading agri-compounds,” said Jai Shroff, chief executive officer of UPL Ltd in a media statement.

Revenues from operations increased 3%, to Rs 9,125 crore during the December quarter as against Rs 8,892 crore during the same period last year. And the earnings before interest, taxes, depreciation and amortization was recorded at Rs. 2,209 crore as against Rs. 2,076 crore last year.

“There was a 200 bps of higher gross margins driven by a favorable mix of products and cost synergies. Ad Strong margins, cost synergies and cost-optimization measures have augured well for the company resulting in improved Ebitda margins at 24.2%.

UPL has maintained its revenue guidance of 6-8% growth and an Ebitda guidance of 10-12% for the whole FY 21.

“Favorable agronomic conditions and strong agriculture commodity prices augur well for the business and are expected to support the growth momentum,” the company said in a statement.

During the quarter under review the company commissioned a manufacturing facility in Jhagadia Gujarat for producing Clethodim, one of the largest post-emergence herbicides used to control perennial grasses in a wide variety of crops worldwide.

“UPL will leverage its manufacturing capabilities and cost leadership to make Clethodim more widely available to farmers globally to meet their requirements of weed resistance,” said Shroff in the media statement.

The company’s endeavor to put Clethodim as a frontline agri-compound is further testament to the growing synergies between UPL and Arysta Lifescience which we acquired in 2019, Shroff added.

The company during the December quarter reported an exceptional loss of Rs 78 crore in for costs related to restructuring in Europe and provision written back related to litigation costs in North America.

UPL said that during the quarter, the company continued with its strategy to deleverage the balance sheet and redeemed its bonds that were due in October 2021.

“Post the redemption, the Gross Debt stands at Rs 27,837 crore compared to Rs 31,817 crore in the last quarter,” the company said.

The company added that the business saw double digit growth in Africa, Middle East, Australia and New Zealand. Strong growth was achieved in Southeast Asia due to Glufosinate expansion. Accelerated growth in China was driven by UPL’s branded products in addition to the recent Yoloo acquisition.

“The COVID-19 pandemic had a short-term impact on market growth but is likely to boost investment especially in biologicals as part of a wider shift to interest in food security and sustainable crop production and ensuring more robust supply chains,” the company said in a statement.





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