UPL rose 1.28% to Rs 800.70 after the company's consolidated net profit soared 24.89% to Rs 1,179 crore on a 23.78% increase in revenue from operations to Rs 11,297 crore in Q3 FY22 over Q3 FY21.
The Q3 FY22 revenue witnessed a robust growth of almost 24% Y-o-Y (year-on-year) led by healthy growth in volumes (up 11%) and better product realizations (up 13%). Consolidated profit before tax (PBT) jumped 27.82% to Rs 1,346 crore in Q3 FY22 from Rs 1,053 crore in Q3 FY21.
EBITDA grew 21% to Rs 2,666 crore in Q3 FY22 over Rs 2,209 crore in Q3 FY21. The Q3 FY22 EBITDA improved after in-house manufacturing with backward integration linkages was supported by effective raw material sourcing and overall cost management - keeping the EBITDA margins largely intact, despite the higher input costs and a sharp rise in freight charges. EBITDA margin fell 61 bps to 23.6% in Q3 FY22 as against 24.2% in Q3 FY21.
On a consolidated segmental basis, revenues from agro activities grew 23.67% to Rs 10,742 crore in Q3 FY22 as compared to Rs 8,686 crore in Q3 FY21. Revenues from non-agro activities jumped 26.76% to Rs 630 crore in Q3 December 2021 as against Rs 497 crore in Q3 December 2020. Revenues from Unallocated segment dropped 50% to Rs 1 crore in Q3 FY22 over Rs 2 crore in Q3 FY21.
On a standalone basis, net profit tumbled 42.42% to Rs 57 crore on a 37.79% increase in revenue from operations to Rs 4,025 crore in Q3 FY22 over Q3 FY21.
Commenting on the performance, Jai Shroff, the chief executive officer (CEO) of UPL, has said, "UPL delivered another quarter of strong business performance in a challenging environment with growth across all regions except India. We are confident of continuing this business momentum and ending the fiscal year 2022 on a strong note. During the quarter, we announced a new strategic partnership in Brazil with 'Bunge', a world leader in sourcing, processing, and supplying oilseed and grain products and ingredients."
"We also undertook multiple initiatives to re-imagine sustainability and in Q3, we successfully raised a sustainability loan of $700 million. At the same time, furthering our commitment to the Gigaton challenge, our digital platform 'nurture.farm' successfully completed its Crop Residue Management Program, thereby preventing release of over 1 million tons of carbon emissions. Taken together, these initiatives underscore UPL's commitment to sustainability as we continue to raise the bar for the industry as a whole with UPL being ranked once again as the #1 global crop protection company amongst its peers by Sustainalytics in its 2021 ESG rankings."
UPL is a global provider of sustainable agriculture products & solutions. Through OpenAg, UPL is focused on facilitating progress for the entire agricultural value chain.
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