Q2 Results: UPL’s Profit Misses Estimates On One-Time Expense
Nov. 8, 2019
Net profit was Rs 89 crore in the quarter ended September, the agro-chemical maker said in an exchange filing. Analysts tracked by Bloomberg had estimated the metric at Rs 516 crore. The company had reported a profit of Rs 270 crore a year ago.
AgroFresh Solutions Inc. had filed a lawsuit against UPL’s subsidiary Decco for infringing its patent on a technology that keeps apples fresh in storage after harvest. In October, a federal jury in Wilmington, Delaware, ordered UPL and Decco to pay AgroFresh $31 million (approximately Rs 217 crore). This amount was provided for in the quarter as an exceptional item, the company said in the exchange filing.
UPL’s revenue for the three-month period was Rs 7,817 crore—in line with the Rs 7,874-crore estimate. Operating profit stood at Rs 1,539 crore, in line with the Rs 1,628-crore forecast. Margin remained flat at 19.7 percent, hurt by higher raw material prices, against the estimated 20.7 percent. A foreign exchange loss of Rs 92 crore also affected operational performance.
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