Results     12-Nov-24
Analysis
UPL
Reports loss of Rs 443 crore
Net sales (including other operating income) of UPL has increased 9.05% to Rs 11090 crore.  Sales of Non Agro segment has gone up 11.13% to Rs 599.00 crore (accounting for 5.37% of total sales).  Sales of Crop Protection segment rose 9.30% to Rs 9,448.00 crore (accounting for 84.66% of total sales).  Sales of Seeds Business segment has gone up 3.82% to Rs 1,113.00 crore (accounting for 9.97% of total sales).  Inter-segment sales came down from Rs 85.00 crore to Rs 70.00 crore. 

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.83% to Rs 969.00 crore.  PBIT of Non Agro segment fell 7.94% to Rs 58.00 crore (accounting for 5.99% of total PBIT).  PBIT of Crop Protection segment rose 0.56% to Rs 716.00 crore (accounting for 73.89% of total PBIT).  PBIT of Seeds Business segment rose 4.84% to Rs 195.00 crore (accounting for 20.12% of total PBIT). 

PBIT margin of Non Agro segment fell from 11.69% to 9.68%.  PBIT margin of Crop Protection segment fell from 8.24% to 7.58%.  PBIT margin of Seeds Business segment rose from 17.35% to 17.52%.  Overall PBIT margin fell from 9.37% to 8.68%. 

Operating profit margin has declined from 13.03% to 12.19%, leading to 2.04% rise in operating profit to Rs 1,352.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 51.45% to 52.51%.   Employee cost decreased from 12.30% to 12.06%.   Other expenses rose from 23.23% to 23.25%.  

Other income rose 5.71% to Rs 111 crore.  PBIDT rose 2.31% to Rs 1463 crore.  Provision for interest rose 22.85% to Rs 1070 crore.  Loan funds declined from Rs 34,936.00 crore as of 30 September 2023 to Rs 33,217.00 crore as of 30 September 2024.  Inventories declined from Rs 18,246.00 crore as of 30 September 2023 to Rs 14,106.00 crore as of 30 September 2024.  Sundry debtors were lower at Rs 15,719.00 crore as of 30 September 2024 compared to Rs 18,229.00 crore as of 30 September 2023.  Cash and bank balance rose to Rs 3,910.00 crore as of 30 September 2024 from Rs 3,170.00 crore as of 30 September 2023.  Investments rose to Rs 2,072.00 crore as of 30 September 2024 from Rs 1,840.00 crore as of 30 September 2023 . 

PBDT fell 29.70% to Rs 393 crore.  Provision for depreciation rose 6.09% to Rs 697 crore.  Fixed assets declined from Rs 21,654.00 crore as of 30 September 2023 to Rs 21,279.00 crore as of 30 September 2024.  Intangible assets increased from Rs 20,098.00 crore to Rs 20,293.00 crore. 

Profit before tax down 210.20% to Rs -304.00 crore.  Share of profit/loss was 33.82% higher at Rs -135 crore.  Extraordinary items were increased to Rs -8.00 crore.  Provision for tax was debit of Rs 138 crore, compared to credit of Rs 96 crore.  Effective tax rate was negative 30.87% compared to 24.68%.

Minority interest decreased 36.54% to Rs -142.00 crore.  Net profit attributable to owners of the company decreased 134.39% to Rs -443.00 crore. 

Equity capital stood at Rs 150.00 crore as of 30 September 2024 to Rs 150.00 crore as of 30 September 2023.  Per share face Value remained same at Rs 2.00. 

Promoters’ stake was 32.52% as of 30 September 2024 compared to 32.52% as of 30 September 2023 .  Promoters pledged stake was 0.91% as of 30 September 2024.

Commenting on the Q2FY25 performance, Jai Shroff, Chairman and Group CEO, said “Our volume growth continues, and we are on the path to achieving our EBITDA and net debt guidance levels. With our fundamentals intact, we saw robust volume growth in our global crop protection business. In India, there was an overall positive momentum. Pushing sales closer to application season has optimized our working capital requirements and minimized likelihood of sales returns. We will continue to focus on enforcing stricter credit and inventory norms to enhance cash flows.

On our global seeds platform, Advanta, we are back on track after some headwinds in Q1. Our growth this quarter was margin accretive, driven by favorable pricing in grain sorghum and corn. The continued business momentum is expected to yield favorable results in the second half of the year.”

Commenting on the Q2FY25 performance, Mike Frank, CEO, UPL Corporation Ltd., said: “The fundamentals in the global crop protection market continue to remain strong. We continue to see robust dealer and farmgate demand across most regions for our products, as seen in our 13% volume growth this past quarter. Leading this growth was our fungicide segment, led by mancozeb products globally, as well as other premium fungicides in Europe.

We had continued growth in our BioSolutions NPP business, which grew 10%. Specifically, our biocontrol offerings in Latin America and Europe have received strong customer demand. Additionally, NPP was supported by biostimulant volumes in Brazil.

Aligned with our strategy, we continue to improve product mix from differentiated and sustainable segments, which has increased from ~35% last year to ~37% now.

Contribution margin compressed by ~150 bps vs Q2FY24, primarily due to pricing pressure, as well as foreign exchange impact in key countries, such as Brazil.

On SG&A, we faced challenges related to ECLs and write-offs impacting our EBITDA for the quarter, which came in 9% lower than last year Q2.”

For year-to-date (YTD) results analysis

Net sales (including other operating income) of UPL has increased 5.35% to Rs 20157 crore.  Sales of Non Agro segment has gone up 2.75% to Rs 1,196.00 crore (accounting for 5.89% of total sales).  Sales of Crop Protection segment rose 6.18% to Rs 16,988.00 crore (accounting for 83.65% of total sales).  Sales of Seeds Business segment has gone down 1.80% to Rs 2,124.00 crore (accounting for 10.46% of total sales).  Inter-segment sales came down from Rs 193.00 crore to Rs 151.00 crore. 

Profit before interest, tax and other unallocable items (PBIT) has slumped 10.15% to Rs 1,700.00 crore.  PBIT of Non Agro segment fell 2.67% to Rs 146.00 crore (accounting for 8.59% of total PBIT).  PBIT of Crop Protection segment fell 5.73% to Rs 1,152.00 crore (accounting for 67.76% of total PBIT).  PBIT of Seeds Business segment fell 22.69% to Rs 402.00 crore (accounting for 23.65% of total PBIT). 

PBIT margin of Non Agro segment fell from 12.89% to 12.21%.  PBIT margin of Crop Protection segment fell from 7.64% to 6.78%.  PBIT margin of Seeds Business segment fell from 24.04% to 18.93%.  Overall PBIT margin fell from 9.79% to 8.37%. 

Operating profit margin has declined from 13.58% to 12.17%, leading to 5.58% decline in operating profit to Rs 2,453.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 47.89% to 51.31%.   Employee cost increased from 13.02% to 13.27%.   Other expenses fell from 25.52% to 23.25%.   Provisions writeoffs cost fell from 0.53% to 0.43%.   Other provisions fell from 0.53% to 0.43%.  

Other income rose 1.46% to Rs 209 crore.  PBIDT fell 5.06% to Rs 2662 crore.  Provision for interest rose 26.23% to Rs 1983 crore.  Loan funds declined from Rs 34,936.00 crore as of 30 September 2023 to Rs 33,217.00 crore as of 30 September 2024.  Inventories declined from Rs 18,246.00 crore as of 30 September 2023 to Rs 14,106.00 crore as of 30 September 2024.  Sundry debtors were lower at Rs 15,719.00 crore as of 30 September 2024 compared to Rs 18,229.00 crore as of 30 September 2023.  Cash and bank balance rose to Rs 3,910.00 crore as of 30 September 2024 from Rs 3,170.00 crore as of 30 September 2023.  Investments rose to Rs 2,072.00 crore as of 30 September 2024 from Rs 1,840.00 crore as of 30 September 2023 . 

PBDT fell 44.93% to Rs 679 crore.  Provision for depreciation rose 4.95% to Rs 1357 crore.  Fixed assets declined from Rs 21,654.00 crore as of 30 September 2023 to Rs 21,279.00 crore as of 30 September 2024.  Intangible assets increased from Rs 20,098.00 crore to Rs 20,293.00 crore. 

Profit before tax down 1,030% to Rs -678.00 crore.  Share of profit/loss was 36.02% higher at Rs -167 crore.  Extraordinary items were increased to Rs -57.00 crore.  Provision for tax was debit of Rs 210 crore, compared to credit of Rs 260 crore.  Effective tax rate was negative 23.28% compared to 57.65%.

Minority interest decreased 69.64% to Rs -285.00 crore.  Net profit attributable to owners of the company decreased 3,495.65% to Rs -827.00 crore. 

Equity capital stood at Rs 150.00 crore as of 30 September 2024 to Rs 150.00 crore as of 30 September 2023.  Per share face Value remained same at Rs 2.00. 

Promoters’ stake was 32.52% as of 30 September 2024 ,compared to 32.52% as of 30 September 2023 .  Promoters pledged stake was 0.91% as of 30 September 2024

Cash flow from operating activities increased to negative Rs -2,715.00 crore for YTD ended September 2024 from negative Rs -9,691.00 crore for YTD ended September 2023.  Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 947.00 crore, compared to Rs 1,077.00 crore during the YTD ended September 2023. 

The scrip trades at Rs 538

  

UPL : Consolidated Results

Particulars

2409 (03)

2309 (03)

Var.(%)

2409 (06)

2309 (06)

Var.(%)

2403 (12)

2303 (12)

Var.(%)

Net Sales (including other operating income)

11,090

10,170

9

20,157

19,133

5

43,098

53,576

-20

OPM (%)

12.2

13.0

 

12.2

13.6

 

10.5

19.0

 

OP

1,352

1,325

2

2,453

2,598

-6

4,539

10,196

-55

Other Inc.

111

105

6

209

206

1

483

477

1

PBIDT

1,463

1,430

2

2,662

2,804

-5

5,022

10,673

-53

Interest

1,070

871

23

1,983

1,571

26

3,852

2,963

30

PBDT

393

559

-30

679

1,233

-45

1,170

7,710

-85

Depreciation

697

657

6

1,357

1,293

5

2,763

2,547

8

PBT

-304

-98

-210

-678

-60

 

-1,593

5,163

PL

Share of Profit/(Loss) from Associates

-135

-204

34

-167

-261

36

-242

157

PL

PBT before EO

-439

-302

-45

-845

-321

-163

-1,835

5,320

PL

EO Income

-8

-87

91

-57

-130

56

-252

-170

-48

PBT after EO

-447

-389

-15

-902

-451

-100

-2,087

5,150

PL

Taxation

138

-96

PL

210

-260

PL

-209

736

LP

PAT

-585

-293

-100

-1,112

-191

-482

-1,878

4,414

PL

Minority Interest (MI)

-142

-104

-37

-285

-168

-70

-678

844

LP

Net profit

-443

-189

-134

-827

-23

 

-1,200

3,570

PL

EPS (Rs)*

#

#

 

#

#

 

-14

49

 

Notes

* EPS is on current equity of Rs 150.12 crore, Face value of Rs 2, Excluding extraordinary items.

# EPS is not annualised

bps : Basis points

EO : Extraordinary items

Figures in Rs crore

Source: Capitaline Corporate Database

 

UPL : Consolidated Segment Results

 

% of (Total)

2409 (03)

2309 (03)

Var.(%)

% of (Total)

2409 (06)

2309 (06)

Var.(%)

% of (Total)

2403 (12)

2303 (12)

Var.(%)

Sales

 

 

 

 

Non Agro

5

599

539

11

6

1196

1164

3

5

2305

2741

-16

Crop Protection

85

9448

8644

9

84

16988

15999

6

85

36898

47568

-22

Seeds Business

10

1113

1072

4

10

2124

2163

-2

10

4224

3603

17

Total Reported Sales

100

11160

10255

9

100

20308

19326

5

100

43427

53912

-19

Less: Inter segment revenues

 

70

85

-18

 

151

193

-22

 

329

340

-3

Net Sales

 

11090

10170

9

 

20157

19133

5

 

43098

53572

-20

PBIT

 

 

 

 

Non Agro

6

58

63

-8

9

146

150

-3

9

253

303

-17

Crop Protection

74

716

712

1

68

1152

1222

-6

63

1794

7956

-77

Seeds Business

20

195

186

5

24

402

520

-23

28

807

686

18

Total PBIT

100

969

961

1

100

1700

1892

-10

100

2854

8945

-68

Less : Interest

 

1070

871

23

 

1983

1571

26

 

3852

2963

30

Add: Other un-allcoable

 

-346

-479

28

 

-619

-772

20

 

-1089

-832

-31

PBT

 

-447

-389

-15

 

-902

-451

-100

 

-2087

5150

PL

 

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