UPL Q4 FY24 profit drops by 95% at Rs. 40 Cr

UPL Q4 FY24 profit drops by 95% at Rs. 40 Cr

The company delivered significantly improved financial results in Q4 versus the two preceding quarters

  • By ICN Bureau | May 13, 2024

UPL Ltd. today reported financial results for the fourth quarter that ended March 31, 2024. The company reported 95 per cent drop in its net profit at Rs. 40 crore in Q4 FY2024 as compared to Rs. 792 crore in Q4 FY2023.

During the quarter, UPL’s revenue fell by 15 per cent at Rs. 14,078 crore as compared to Rs. 16,569 crore in the fourth quarter of FY 2023. Q4FY24 Revenue declined primarily due to lower prices in the post-patent market (prices came off against last year’s [LY] higher base). Volumes were largely in line with LY.

For the Financial Year ended March 31, 2024, UPL has reported a net loss of Rs. 1,200 crore as compared to a net profit of Rs. 3,569 crore in FY2023. The revenue for FY 2024 also dropped by 20 per cent to Rs. 43,098 crore as compared to Rs. 53,576 crore in FY 2023.

Commenting on the Q4FY24 performance, Mike Frank, CEO, UPL Corporation Ltd., said: “We delivered significantly improved financial results in Q4 versus the two preceding quarters, inspite of the prevailing volatile and challenging market conditions.

“As compared to Q3, volumes recovered well and were in-line with LY, largely led by the strong performance of our high-margin differentiated and sustainable portfolio, which contributed 36% of crop protection revenue vs 29% LY. Our recent launches of Evolution, Feroce and Shenzi did exceedingly well, growing volumes by >50%.

“In addition, Europe and Rest of the World regions, had a strong performance posting double-digit growth.

“Contribution margins were in-line with last year, adjusted for the transitory impact of high-cost inventory liquidation and higher rebates to support channel partners. Our cost optimization efforts paid off as we reduced Q4 SG&A expenses by 17% YoY.

“Furthermore, Advanta, our global seeds platform continued to see robust traction delivering revenue growth of 34% and 38% respectively for the quarter.

“As we look ahead to FY25, we expect a return to growth and normalization in margins driven by the agchem market returning to normality. Further, our foremost priority remains to deleverage our balance sheet which we plan to achieve through operational cash flows, completion of rights issue, and pursuing capital raise opportunities within our platforms.”

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