By: ICN Bureau
Last updated : February 01, 2022 7:43 am
Q3FY22 revenue up by 24% amid disruptive supply-chain and inflationary environment
UPL Ltd.’s Q3 FY22 revenue witnessed robust growth of 24% YoY to reach Rs 11,297 crore, led by healthy growth in volumes (+11%) and better product realizations (+13%). The agrochemical major’s Q3 FY22 EBITDA grew by 21% YoY to Rs 2,666 crore as against Rs 2,209 crore in Q3 FY21.
In-house manufacturing with backward integration linkages supported by effective raw material sourcing and overall cost management helped in keeping the EBITDA margins largely intact, despite the higher input costs and a sharp rise in freight charges. Without considering the strategic long-term Investment of Rs 75 crore in our digital platform, EBITDA growth was 23% YoY and EBITDA margin was 24.3%, in-line versus Q3 FY21, the company said in a release.
Commenting on the performance, Jai Shroff, CEO, UPL Ltd., 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 US$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.”
For the 9 months period ended December 31, 2021, UPL’s revenue zooms to Rs 30,379 crore as compared to Rs 25,898 crore during the corresponding period ended 31 December 2020.
The company registered net profit of Rs 2247 crore for the 9 months ended December 31, 2021 as compared to Rs 1807 crore for the 9 months ended December 31, 2020.
The company witnessed healthy volume growth along with improved realisations across all regions except India. According to the release, high sales return in Kharif and erratic monsoon adversely impacted sales volume in India. The company witnessed robust growth in Latin America propelled by higher herbicide demand and a significant uptick in realizations. North America delivered a strong outperformance led by robust volume and pricing growth. This outperformance was driven by a combination of factors - buoyant commodity prices, constrained supply for key products, favorable channel stock and improved herbicide demand. Strong performance in North Europe drove major growth in Europe. Improved demand for BioSolutions also supported the regional performance.