Chemical
UPL Q2 sales, profit rises on higher international volume growth
Company's revenue from operations grew by 15% and stood at Rs 9,014 crore as against Rs 7,841 crore in the same period last year.
- By ICN Bureau
| November 01, 2020
India's leading agrochemical company UPL Ltd has registered an impressive growth of 178% YoY in consolidated net profit at Rs 463 crore for the September quarter. The company had posted a profit of Rs 166 crore in the same quarter last year.
Company's revenue from operations grew by 15% and stood at Rs 9,014 crore as against Rs 7,841 crore in the same period last year.
The company said it has decided to stop production at its Netherlands plant, which is one of the oldest manufacturing unit and requires significant repairs and maintenance, for which it earmarked Rs 195 crore.
The company’s operating profit grew 18% over the year earlier to Rs 1,808 crore, while Ebitda margin rose to 20.2% from 19.7%.
The company said during the quarter, the company gained market share in key territories combined with favourable weather patterns in Brazil, US, Andean and parts of EU (e.g. Germany) leading to volume growth. India growth was driven by herbicides in rice and soybeans supported by intensification of monsoons.
Currency devaluation in Brazil and several countries in LATAM (e.g. Mexico) impacted gross margins in the second quarter, said the company release.
Further the company has maintained its revenue growth guidance of 6-8%, and 10-12% for Ebitda for the financial year 2020-21.
Growth will be driven by focus on differentiated solutions as well as new product launches, said Anand Vora, CFO, UPL.
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