 "UPL")
Shares of United Phosphorus Limited (UPL) slid up to 6.1 per cent at Rs 501.85 per share on the BSE in Tuesday’s intraday trade. The fall in the stock prices came after the company delivered a sluggish quarterly growth for the January-March quarter of fiscal year 2023-24 (Q4FY24).
The total revenues of UPL dropped by 15 per cent year on year (YoY) at Rs 14,078 crore in the March quarter of FY24 as against Rs 16,569 crore in the corresponding quarter of the previous fiscal year. On a full year basis, the revenues fell by 20 per cent to Rs 43,098 crore in FY24 as compared to Rs 53,576 crore in FY23.
The company’s net profits plunged by 95 per cent Y-o-Y to Rs 40 crore in Q4FY24 from Rs 792 crore in Q4FY23.
The management said that Q4FY24 revenue declined primarily due to lower prices in the post-patent market as prices came off against last year’s higher base.
UPL’s earnings before interest and tax (Ebitda) margins decreased by 480 basis points (bps) to 13.7 per cent in the March quarter compared to 18.3 per cent recorded in Q4FY24.
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Contribution margins are primarily impacted by the liquidation of high-cost inventory and higher rebates to support the channel, the management said in an exchange filing.
“As compared to Q3, volumes recovered well and were in-line with last year, largely led by the strong performance of our high-margin differentiated and sustainable portfolio, which contributed 36 per cent of crop protection revenue vs 29 per cent last year. Our recent launches of Evolution, Feroce and Shenzi did exceedingly well, growing volumes by more than 50 per cent” said Mike Frank, CEO, UPL Corporation.
At 11:26 AM; the stock price of the company was trading 5.30 per cent lower at Rs 506.05 per share. In comparison, the S&P BSE index was up by 0.29 per cent.
The stock of the company is presently trading at a price to earnings multiple of 36.07 times.
UPL is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers pesticides.
UPL is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers pesticides.
