UPL shares gain 11% on biz update, expectation of net debt reduction

The company said it expects its net debt to be at approx. $ 2.9 billion as of March 31, 2020 as compared to $4.2 billion as on December 31, 2019

Shares of UPL jumped 11 per cent to Rs 400 on the BSE on Thursday amid expectation of debt reduction of more than $1 billion during the January-March quarter (Q4FY20). The stock is trading in future & option (F&O) segment, which has no circuit limits.

The agrochemicals company said its net debt stood at approx. $2.9 billion as of March 31, 2020 as compared to $4.2 billion as on December 31, 2019. Net debt stood at $3.8 billion as of March 31, 2019, it said.

The same represents a reduction in net debt of approx. $900 million and $1.3 billion as compared to Q4FY19 and Q3FY20, respectively. The company has cash/cash equivalent of approximately $875 million (approx Rs 6,500 crore) as of March 31, 2020.

Meanwhile, UPL further said it presently continues to see demand in line with the expectations as the farming season continues to be normal across the world. This is being supported by governments across the world to strengthen their security of food supply, the firm said.