 "UPL Ltd Q2 net profit up 25.19% on robust sales despite Ukraine impact")
Agro-chemicals maker UPL Ltd on Tuesday posted a 25.19 per cent jump in its consolidated net profit at Rs 969 in the second quarter of FY23 on strong sales, despite some impact faced due to the Russia-Ukraine crisis.
The company had posted a consolidated net profit of Rs 774 crore during the second quarter previous year.
"Due to ongoing war between Russia and Ukraine, and the sanctions in the region, the Group's business has been impacted to some extent," the company said in a regulatory filing.
The Group is having approximately Rs 86 crore of inventory and Rs 54 crore of receivables as on September 30 in this war affected region, it said, adding that the company is continuously monitoring the situation.
"The Group continues to do business in these two countries and taking necessary steps to protect itself from various risk involved. Management is confident of realisation of these assets," UPL added.
According to the filing, the company's net income rose 18.35 per cent to Rs 12,507 crore in the July-September quarter of the current fiscal from Rs 10,567 crore in the year-ago period.
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Expenses remained higher at Rs 11,315 crore as against Rs 9,561 crore in the said period, the filing added.
UPL Ltd CEO Jai Shroff said: "We continued to see robust growth momentum in Q2 FY23 with 18 per cent year-on-year (YoY). Our focus on quality growth with a better product mix and proactive pricing actions drove a strong 35 per cent YoY growth in EBITDA..."
The Group has recently announced a strategic corporate realignment initiative, creating distinct pure-play platforms to accelerate growth and unlock value for shareholders, he said.
"We have brought on-board marquee investors such as ADIA, Brookfield, KKR and TPG, who have collectively invested around Rs 4,000 crore (or USD 500 million) for minority stakes in our India Agtech and Global Seeds Business Platforms," he said.
Going forward, the Group is well poised to continue its healthy growth momentum in the second half of the year, he added.
Announcing changes in directorship, UPL said Rajju Shroff -- current Chairman and Managing Director -- takes the role of "Chairman Emeritus" and Jai Shroff -- Global CEO -- will now assume the role of the Chairman of the Board with effect from December, 2022.
Shares of the company fell 1.85 per cent at Rs 717.05 a piece on the BSE at 1540 hours.