UPL Ltd Q3 Results FY2023, PAT at Rs. 1087 crores

On 31st January 2023, UPL Ltd announced its results for the third quarter of FY2023.

Key Highlights:

- Revenue at Rs. 13679 Crores for the quarter, up by 21% YoY. The growth in revenues continued to be led by a marginal increase in volumes (+1%) higher realizations (+13%) and a favorable exchange rate (+7%)
- EBITDA at Rs. 3035 Crores, up by 14% YoY driven by robust topline growth. Higher SG&A investment to strengthen customer relations and build capabilities to drive differentiated & sustainable portfolio led to marginal compression in EBITDA %.
- PAT at Rs. 1087 Crores for the quarter, up by 16% YoY.

Business Highlights:

- The Latin America business reported a revenue of Rs. 5947 crores, a growth of 28% YoY.
- The European business reported a revenue of Rs. 1444 crores, a growth of 3% YoY.
- The North American business reported a revenue of Rs. 2745 crores, a growth of 30% YoY.
- The Indian business reported a revenue of Rs. 1075 crores, a growth of 19% YoY.
- The Rest of the world's business reported a revenue of Rs. 2441 crores, a growth of 12% YoY.

Commenting on the performance, Mr. Mike Frank, CEO – of UPL Global Crop Protection, said “We continued to see solid traction in Q3 FY23 following the strong first-half performance. The product prices remained firm leading to a healthy uptick in realizations. Grower margins remain strong due to elevated agriculture commodity prices, providing a good backdrop for the overall market. We also continued to invest in strengthening our customer relationships & farmer connect and towards building capabilities to drive a differentiated and sustainable portfolio leading to higher SG&A in Q3. However, despite higher SG&A expenses, we have delivered a healthy 14% YoY growth in EBITDA.

Having said that, our priority remains on delivering profitable growth. In line with this strategy, for the first nine months of FY23, we focused on achieving quality growth with a better product mix and proactive pricing actions. This has enabled us to improve our margins and deliver robust 24% YoY growth in EBITDA. 

Going forward, as we look ahead to the fourth quarter, the demand for agrochemicals continues to be strong, especially in the Americas. While there is some channel de-inventorying taking place, we expect strong volume growth in Q4. Given the positive backdrop, we are confident of ending FY23 on a strong footing and meeting our revenue and EBITDA growth guidance as well as the stated reduction in net debt to US$ 2 Billion by March 2023.”