UPL Ltd Q4 Results FY2023, Profit at Rs. 792 crores

On 8th May 2023, UPL Ltd announced its quarterly results for the last quarter of FY2023.

UPL Ltd’s Financial Highlights:

- UPL’s Revenue for the Quarter ended 31st March 2023 grew 4.47% to Rs. 16,569 Crores. The quarter was impacted by a rapid decline in product prices and delays in planting season that resulted in headwinds for product placements. The revenue for the full year ended 31st March 2023 grew 16% to Rs. 53,576 Crores led by better product realizations (+10%), favorable currency impact (+5%), and flat volumes 
- EBITDA dropped by 15.54% to Rs. 3033 Crores in Q4FY23. EBITDA grew 10% to Rs. 11,178 Crores for FY23. EBITDA margins were lower mainly due to weaker-than-expected performance in Q4 impacted by headwinds in the post-patent space, which offset the healthy performance delivered during the first nine months. 
-  Net Profit dropped by 42.57% to Rs. 792 Crores in Q4FY23. For FY2023, Net profit stood at Rs. 3,569 crores, dropped by 2% YoY.

UPL Ltd’s Regional Highlights:

- Latin America region posted revenue at Rs. 6,444 crores, up by 12% YoY for Q4FY23. For FY2023, the region reported revenue at Rs.21,975 crores, up by 22% YoY.
- European region posted revenue at Rs. 2800 crores, up by 7% YoY for Q4FY23. For FY2023, the region reported revenue at Rs.7324 crores, up by 22% YoY.
- North American region posted revenue at Rs. 3009 crores, a drop of 14% YoY for Q4FY23. For FY2023, the region reported revenue at Rs. 8735 crores, up by 12% YoY.
- Indian region posted revenue at Rs. 1588 crores, up by 15% YoY for Q4FY23. For FY2023, the region reported revenue at Rs.6539 crores, up by 15% YoY.
- The rest of the world region posted revenue at Rs. 2728 crores, up by 6% YoY for Q4FY23. For FY2023, the region reported revenue at Rs.9002 crores, up by 15% YoY.

UPL Ltd’s Debt:

- During the year, the company generated strong cash flows and utilized them towards deleveraging the balance sheet and returning cash to shareholders. 
- The gross debt was reduced by $617 Million and net debt by US$ 440 Million 
- Net Debt of $2.06 Billion as of 31st March 2023. 

Commenting on the performance, Mr. Jai Shroff, Chairman and Group CEO – UPL Ltd, said “We delivered a resilient set of results for FY23 despite facing significant headwinds in the final quarter. Thanks to the dedication, agility, and tenacity of our teams, we were able to deliver on most of our commitments. 
We reduced our gross debt by over $600 Million and net debt by $440 Million driven by improved cash flow from operations and a leaner working capital cycle.
In line with our priority of creating shareholder value, we created distinct pure-play platforms during the year to bring in enhanced focus and operational freedom to pursue independent growth strategies thereby unleashing the growth potential of each of our distinct platforms.
Going forward, as we look ahead to FY24, we are well-positioned to deal with the market headwinds and deliver better profitability growth. In the longer term, we remain confident of achieving our growth ambitions and transforming the food value chain with emphasis on sustainability.”