You need to look at the UPL quarterly profits in the light of their acquisition of Arysta for which they had paid a huge sum of $4.2 billion to get a much wider global footprint. The impact of the acquisition is included in this quarter and that is why the numbers appear to be under pressure. While Revenues were up by 50% (post consolidation of Arysta Life Sciences), the net profit fell by 65% to Rs.363 crore on a YOY basis. Even on a QOQ basis it was down by 43%. This was largely due to the sharply higher interest cost and also higher operating expenses. However, there are some positives you must look at.

If you exclude Arysta, the top line has grown by 15% with solid growth across geographies. In fact, the company saw an improvement in volumes and realizations. Latin America continues to be one of the biggest growth markets for UPL. The benefits of the Arysta Life Sciences acquisition will be visible in the next couple of years. But the way the stock prices have doubled in the last one year clearly shows that the momentum is in favour of the stock. If you have a 2-3 years perspective, you can surely look to buy UPL.