UPL's consolidated net profit surged 28.4% to Rs 814 crore in Q2 FY23 on 18.4% rise in revenue from operations to Rs 12,507 crore in Q2 FY23 over Q2 FY22.
The increase in the revenue was led by higher realizations (+21%) and a favorable exchange rate (+4%) offset by decline in volumes (-7%)
Consolidated profit before tax stood at Rs 1,200 crore, registering a growth of 17.3% as against Rs 1,023 crore posted in the corresponding quarter previous year.
EBITDA improved by 35% to Rs 2,768 crore in Q2 FY23 from Rs 2,045 crore reported in Q2 FY22. EBITDA margin increased to 22.1% in Q2 FY23 as compared with 19.4% recorded in the same period last year.
The rise in the EBITDA was mainly driven by improved realizations, better product mix along with efficient supply chain management drove EBITDA margins improvement by 278 bps despite the significant external pressures.
The company's gross debt grew 19.91% to Rs 32,550 crore as on 30 September 2022 from Rs 27,146 crore posted on 30 September 2021. Net debt stood at Rs 28,512 crore, up 17.43% as against Rs 24,279 crore recorded on 30 September 2021.
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Commenting on the performance, Jai Shroff, CEO - UPL, 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 Rs 4,000 crore (or US$ 500 million) for minority stakes in our India Agtech and Global Seeds Business Platforms, he stated.
Shroff further added, 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 million
Meanwhile, the company said that chairman and managing director, Rajju Shroff (Founder of UPL) has decided to step down from his dual responsibility due to advancing age. Shroff will become Chairman Emeritus of the board, effective from 1 December 2022.
UPL is a global provider of sustainable agriculture products & solutions.
Shares of UPL declined 1.85% to Rs 717.05 on the BSE.
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