Comments
UPL Ltd reported a 16 per cent growth in net profits at ₹1087 crore for Q3 FY23 over Q3 FY22’s ₹937 crore on higher sales, realisations, and aided by favourable exchange rate.
Revenues for the quarter were up 21 per cent at ₹13,679 crore as compared to ₹11,297 crore in the same period last year. A 22 per cent growth in the crop protection business coupled with 31 per cent YoY growth in its seed business -- Advanta Seeds helped the agri input maker clock a robust growth.
“We continued to see solid traction in Q3 FY23 following strong H1 FY23 performance. The product prices remained firm leading to a healthy uptick in realisations. Grower margins remain strong due to elevated agriculture commodity prices, providing a good backdrop for the overall market. We also continued to invest in strengthening our customer relationships and farmer connect and towards building capabilities to drive differentiated and sustainable portfolio leading to higher SG&A in Q3. However, despite higher SG&A expenses, we have delivered a healthy 14% YoY growth in EBITDA,” said Mike Frank, CEO, UPL Global Crop Protection.
Also read:WayCool, UPL Sustainable Agri Solutions ink pact offering crop protection to farmers
“Going forward, as we look ahead to the fourth quarter, the demand for agrochemicals continues to be strong, especially in the Americas. While there is some channel de-inventorying taking place, we expect strong volume growth in Q4. Given the positive backdrop, we are confident of ending FY23 on a strong footing and meeting our revenue and EBITDA growth guidance, as well as the stated reduction in net debt to $2 billion by March 2023.” Frank said.
UPL’s North American business grew 30 per cent during Q3, followed by Latin America at 28 per cent, while the Indian business grew 19 per cent. Europe saw a muted growth of 3 per cent, while the rest of the world was up 12 per cent.
Tracking the results, UPL scrip gained 1.64 per cent to end at ₹757.25 on the BSE on Tuesday.
During the quarter, Advanta and Bunge signed an agreement to acquire a 20 per cent stake each in Brazil-based SeedCorp. This will not only help expand UPL’s market access in Brazil, but also strengthen the product portfolio as SeedCorp is Brazil’s third largest soyabean germplasm company.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.