UPL Q2 results | Net profit rises 28% to Rs 814 crore

Global crop protection products manufacturer UPL on November 1 reported 28.4 percent year-on-year rise in consolidated net profit at Rs 814 crore, slightly lower than analyst expectations of Rs 831 crore.

Net profit stood at Rs 633 crore in the same quarter last fiscal.

Soon after the results, the stock tumbled 2.5 percent on the National Stock Exchange. At 2:30 pm, it was quoting at Rs 732 apiece.

Commenting on the performance, Mr. Jai Shroff, CEO – UPL Ltd.,said “We continued to see robust growth momentum in Q2 FY23 with 18% YoY. Our focus on quality growth with a better product mix and proactive pricing actions drove a strong 35% YoY growth in EBITDA, with EBITDA margins expanding by ~278 bps.

As a group, our top priority is creating value for shareholders. In line with this, we recently announced a strategic corporate realignment initiative, creating distinct pure-play platforms to accelerate growth and unlock value for shareholders. We have brought on-board marquee investorssuch as ADIA, Brookfield, KKR and TPG, who have collectively invested around INR 4,000 crore (or US$ 500 Mn) for minority stakes in our India Agtech and Global Seeds Business Platforms

Going forward, we are well poised to continue our healthy growth momentum in the 2nd half of the year and we are confident of meeting our FY23 guidance of revenue growth of 12-15%, EBITDA growth of 15- 18% and reducing net debt by US$ 650 Mn”