UPL Q2 results: Net profit jumps 166% to Rs 537 crore; revenue rises 14%

Agro-chemical firm UPL on Friday reported over two-fold jump in its consolidated net profit to Rs 537 crore for the second quarter ended September 30. Its net profit stood at Rs 202 crore in the year-ago period.

Income from operations rose to Rs 8,939 crore in the second quarter this fiscal from Rs 7,817 crore in the corresponding period last year. UPL Ltd is a global provider of sustainable agriculture products and solutions with annual revenue exceeding USD 5 billion. It has a presence in more than 130 countries.

The company said it has decided to stop production at its Netherlands plant, which is one of the oldest manufacturing unit and requires significant repairs and maintenance, for which it earmarked Rs 195 crore.

The gross margin of the company decreased 210 basis points to 40 per cent. Ebitda margin improved 50 bps.

The company maintained guidance for the current financial year. It expects 6-8 per cent revenue growth and 10-12 per cent Ebitda growth for the full year. Growth will be driven by focus on differentiated solutions as well as new product launches, said Anand Vora, CFO, UPL.

The company said during the quarter, the company gained market share in key territories combined with favourable weather patterns in Brazil, US, Andean and parts of EU (e.g. Germany) leading to volume growth. India growth was driven by herbicides in rice and soybeans supported by intensification of monsoons.

Currency devaluation in Brazil and several countries in LATAM (e.g. Mexico) is impacting gross margin in quarter, it added.