InvestorQ : Can you tell me your quick take on the quarter results of UPL Ltd for the Dec-20 quarter?
Aditi Sharma made post

Can you tell me your quick take on the quarter results of UPL Ltd for the Dec-20 quarter?

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Mahima Roy answered.
1 month ago
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One of India’s most successful and globalized chemical companies, UPL Ltd, reported Q3 PAT up 13.73% at Rs.944 crore on its consolidated global operations. Of course, the company was also helped along the way by on exceptional gains, even as it tries to integrate its global acquisitions into the corporate scheme of things.

You can actually say that revenues were almost flat for UPL as it reported marginally higher revenues by 2.63% for the Dec-20 quarter at Rs.9,126 crore. The top line of UPL was largely boosted by its domestic agro business and also global Latin American business. UPL is one of the major beneficiaries of the better than expected rural spending capacity post Kharif.

Operating profits for the Dec-20 quarter were up 3.30% at Rs.1,660 crore, which is a very marginal growth as integration of its global acquisition is a long drawn process. The operating profits could not improve much as costs remained relatively high in the quarter. This was more due to an overall spike in input costs across the board.

In terms of margins, the impact was moderate. For example, the operating margins moved up marginally from 18.07% in the Dec-19 quarter to 18.19% in Dec-20 quarter. However, the net profit benefited due to an exceptional inflow of Rs78cr from restructuring of the European operations. As a result, the PAT margins improved from 9.33 to 10.34% in yoy period.

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