UPL Q3 Results: Profit up 18% YoY at Rs 937 crore; stock rises

Total revenue from operation during the quarter under review rose 24 per cent YoY to Rs 11,297 crore from Rs 9,125 crore in the same quarter last year. This included an 11 per cent rise in volumes and a 13 per cent improvement in product realisation.

Tracking the development, the stock rose 1.47 per cent to Rs 802.20 on BSE.

Gross margin fell 126 basis points to 43 per cent in Q3FY22. Ebitda margin came in at 23.6 per cent, down 61 basis points over 24.2 per cent last year.

In-house manufacturing with backward integration linkages supported by effective raw material sourcing and overall cost management helped in keeping the Ebitda margin largely intact, despite the higher input costs and a sharp rise in freight charge, the company said in a BSE filing.

CEO Jai Shroff said UPL delivered growth across all regions except India and said he is confident of continuing the business momentum and ending FY22 on a strong note.

During the quarter, the company announced a new strategic partnership in Brazil with ‘Bunge’, a world leader in sourcing, processing, and supplying oilseed and grain products and ingredients.

“We also undertook multiple initiatives to re-imagine sustainability and in Q3, we successfully raised a sustainability loan of $700 million. At the same time, furthering our commitment to the Gigaton challenge, our digital platform ‘nurture.farm’ successfully completed its crop residue management Program, thereby preventing release of over 1 million tons of carbon emissions,” the company said.