UPL Q1 results: profit nearly doubles on low base, improved India business

UPL Ltd.’s profit surged in the quarter ended June, a period marred by the coronavirus pandemic, on account of a low base and improved performance in India—one of its largest markets. 

Net profit rose 93% year-on-year to Rs 551 crore in the April-June period, according to the agrochemical maker's exchange filing on Friday. That compares with the Rs 525-crore consensus estimate of analysts. The bottom line in the base quarter was hurt on account of higher costs and an exceptional loss related to acquisition of Arysta Lifesciences Ltd.

-  UPL’s revenue, however, declined 1% over the year ago to Rs 7,833 crore. Analysts had pegged the top line at Rs 8,528 crore. 

-  Its operating profit rose 29% to Rs 1,704 crore, in line with estimates. 

-  Margin widened to 21.8% from 16.7% in the year-ago period, against the estimated 20%.

UPL's Geographical Performance

Year-on-year change in revenue (%)

Key Performance Highlights: 

-  Strong growth in India, Southeast Asia, driven by good rains. 

-  Gross margin aided by cost and portfolio mix improvements. 

-  Covid-19-related supply chain disruptions in most regions delayed sales from first to second quarter for Latin America and Europe. 

-  North America impacted by Covid-19-related pre-buying in fourth quarter.