UPL Q2 results | Net profit rises 28% to Rs 814 crore, but misses estimates

Global crop protection products manufacturer UPL on November 1 reported 28.4 percent year-on-year rise in consolidated net profit at Rs 814 crore, slightly lower than analyst expectations of Rs 831 crore.

Net profit stood at Rs 633 crore in the same quarter last fiscal.

Soon after the results, the stock tumbled 2.14 percent on the National Stock Exchange. At 3:10 pm, it was quoting at Rs 714.60 apiece.

Consolidated revenue from operations jumped 18 percent YoY to Rs 12,506 crore, said the company in an exchange filing. Analysts had estimated revenue at Rs 12,129.7 crore.

“We continued to see robust growth momentum in Q2 FY23. Our focus on quality growth with a better product mix and proactive pricing actions drove a strong 35 percent YoY growth in EBITDA, with EBITDA margins expanding by ~278 basis points," Jai Shroff, CEO, UPL said.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q2FY23 stands at Rs 2,768 crore and EBITDA margin at 22.1 percent as against 19.4 percent in the year-ago period.

"We are confident of meeting our FY23 guidance of revenue growth of 12-15 percent, EBITDA growth of 15-18 percent and reducing net debt by $650 million," Shroff added.

The company's gross debt as of September 30 stood at Rs 32,550 crore, an increase from Rs 30,123 crore at the end of June quarter. Net debt also increased to Rs 28,512 crore from Rs 26,480 crore in June quarter.

Except Europe, all other regions posted over 20 percent growth in revenue. Latin America saw 20 percent YoY rise in revenue to Rs 6,092 crore. North America revenue grew 24 percent to Rs 1,185 crore. India revenue jumped 22 percent to Rs 1,808 crore.

Meanwhile, Europe revenue increased marginally by one percent to Rs 1,354 crore.

The company's quarterly earnings come a few days after it announced a massive restructuring of its business to unlock value and induct private equity investors in key business verticals such as Indian crop protection and global seeds.