United Phosphorus Q3 net up 33.5%

Date:01-27-2011

United Phosphorus reported a 33.5 rise in consolidated third-quarter net profit on substantial 'other income' but lagged street estimates due to foreign exchange losses and muted revenue growth.

The agro-chemicals maker on Tuesday posted consolidated net profit of 839.1 million rupees for Oct-Dec on a sluggish 7 percent rise in net sales to 11.89 billion rupees.

A Reuters' poll of 21 brokerages had forecast a consolidated net profit of 984.33 million rupees on net sales of 12.28 billion rupees.

The firm, India's largest pesticide maker, reported foreign exchange losses of 354.7 million rupees for the quarter, mainly on foreign currency loans or advances, as compared to a gain of 175.5 million rupees last year, it said in a filing to the BSE.

The chemical maker's 'other income' rose to 262.2 million rupees in December quarter against 82.9 million rupees last year, it said.

"The firm's India sales seem to be affected as extended rainfall in Oct-Nov affected the sowing... reflecting a muted sales growth," Sageraj Bariya, analyst with Angel Broking, told Reuters.

Many regions of India received unseasonal rains in October and November, affecting normal agriculture practices like application of fertilisers, leading to lesser offtake for firms.

"The sales growth might come in the fourth quarter," Bariya said.

At 1:20 p.m., shares of United Phosphorus were trading at 156.70 rupees, up 1 percent in a firm Mumbai market.