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UPL Q2 Result: Agrochemical maker maintains full year revenue, EBITDA guidance

UPL Q2 Result: Agrochemical maker maintains full year revenue, EBITDA guidance

UPL Q2 Result: Agrochemical maker maintains full year revenue, EBITDA guidance
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By Asmita Pant  Nov 1, 2022 4:25 PM IST (Updated)

UPL Q2 result: Improved realisations, better product mix along with efficient supply chain management drove EBITDA margins improvement by 278 bps despite the significant external pressures.

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Agrochemical player UPL Ltd on Tuesday reported a 35 percent year-on-year growth in EBITDA for the September quarter at Rs 2,768 crore. Improved realisations, better product mix along with efficient supply chain management drove EBITDA margins improvement by 278 bps despite the significant external pressures, the company said in an exchange filing.
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.
The revenue for the period under review rose 18 percent from the year-ago period to Rs 12,506 crore led primarily by higher realisations, which rose 21 percent and a favorable exchange rate, which rose four percent, offset by a seven percent decline in volumes.
"Going forward, we are well poised to continue our healthy growth momentum in the second half of the year and we are confident of meeting our FY23 guidance of revenue growth of 12-15 percent, EBITDA growth of 15-18 percent and reducing net debt by $ 650 million,” said CEO Jai Shroff.
The company's net profit jumped 28 percent from the corresponding period in previous year to Rs 813 crore. Analysts in a CNBC-TV18 poll expected the profit to decline 6.3 percent.
The company's gross debt for the three month period stood at Rs 32,550 crore, up from Rs 30,123 crore in the previous quarter. Net debt also increased to Rs 28,512 crore from Rs 26,480 crore, quarter-on-quarter.
The North American region reported the highest growth among other geographical regions, followed be India and Latin America. North America's revenue rose 24 percent to Rs 1,185 crore, India's jumped 22 percent to Rs 1,808 crore and Latin America's increased 20 percent to Rs 6,092  crore.
Except Europe, all other geographical regions reported more than 20 percent growth in revenue. Europe, on the other hand, reported an one percent rise to Rs 1,354 crore. Analysts in the CNBC-TV18 poll had also estimated a low-single-digit growth during the quarter due to drought.
Recently, the company had 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. The global seeds business will be consolidated under a new entity called Advanta Enterprises.
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