Homebusiness Newscompanies News

UPL Earnings Preview: Higher crop prices, price hikes to aid performance

UPL Earnings Preview: Higher crop prices, price hikes to aid performance

UPL Earnings Preview: Higher crop prices, price hikes to aid performance
Read Time
2 Min(s) Read
Profile image

By Sonal Bhutra   | Hormaz Fatakia  Oct 31, 2022 12:44:41 PM IST (Published)

The 30 basis points expansion in UPL's EBITDA Margin is likely to be aided by price hikes.

wealth-desk wealth-desk

Buy / Sell UPL share

Recommended Articles

View All

Agrochemical player UPL Ltd. is likely to report 15 percent growth in its revenue for the September quarter, according to a CNBC-TV18 poll.
The company will report results on Tuesday, November 1.
Growth in the company's topline is likely to be led by an uptick across geographies. While operating profit is likely to increase in the high-teens, margins may expand 30 basis points from last year.
UPL's Latin America business is likely to grow 16 percent in the September quarter led by higher crop prices. The Latin America business contributed a third to UPL's overall topline during the June quarter.
Brokerage firm Phillip Capital believes that UPL's North America, India and Rest of World businesses are likely to grow between 15 percent to 25 percent.
The 30 basis points expansion in EBITDA Margin is likely to be aided by price hikes.
However, the company's European operations are likely to report a low-single-digit growth during the quarter due to drought.
UPL's 27 percent revenue growth during the June quarter was 18 percent price-led, 3 percent due to exchange rates, and 6 percent volume-led. All of its geographies, barring India grew in double-digits during that period.
The company had raised its revenue growth guidance to 12-15 percent from 10 percent earlier. Guidance for EBITDA growth was also revised higher to 15-18 percent from 12-15 percent previously.
Back then, the management said that recent new launches have seen good traction in the marketplace and overall demand outlook remains constructive.
Recently, UPL announced a strategic corporate restructuring to create pureplay growth platforms. It also announced that the Abu Dhabi Investment Authority (ADIA), Brookfield, KKR and TPG will invest a sum of Rs 4,040 crore for minority stakes in the distinct pure play business platforms.
While the ADIA, Brookfield and TPG will hold 9.09 percent stake in UPL SAS, KKR will hold 13.33 percent in the Global Seeds Platform.
Additionally, ADIA & TPG will hold 22.2 percent stake in UPL Cayman - the global crop protection platform (ex-India).
The global seeds business will be consolidated under a new entity called Advanta Enterprises.
Shares of UPL are down nearly 5 percent for the year.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng