Healthy global demand to keep UPL's sales growth trajectory strong

Despite rising debt, margin pressures, the company has maintained its FY22 guidance

September quarter results of India’s largest crop protection company, UPL were largely in line with brokerage estimates barring the pressure on gross margins and rise in debt. The two factors led to a downward revision of earnings estimates for FY22 leading to a two per cent decline in the stock price.

In a tough environment, the company posted a better than expected revenue growth with most markets posting double digit growth. Sales growth in Latin America, its largest market was a robust 20 per cent led by both higher volumes and realisations in Brazil which was up 27 per cent.