UPL Q3 Results: Reports Loss, Misses Estimates

UPL Ltd. incurred a net loss in the third quarter of fiscal 2024, missing analysts' estimates.

The agro-chemical manufacturer posted a net loss of Rs 1,607 crore in the quarter ended December, according to an exchange filing on Friday. This compares with a net profit of Rs 5.2 crore, as per consensus estimates of analysts tracked by Bloomberg.

• Revenue down 27.7% at Rs 9,887 crore vs Rs 13,679 crore (Bloomberg estimate: Rs 11,060.4 crore).

• Ebitda declines 86% to Rs 416 crore vs Rs 2,964 crore (Bloomberg estimate: Rs 1,635.8 crore).

• Margin narrows 1,746 bps to 4.2% vs 21.7% (Bloomberg estimate: 14.8%).

• Net loss of Rs 1,607 crore vs profit of Rs 1,360 crore (Bloomberg estimate: Rs 5.2 crore).

• Revenue and Ebitda for the quarter continued to be impacted by global channel destocking and ongoing pricing pressure in post-patent space, exacerbated by higher rebates.

• Contribution margin impacted by high-cost inventory liquidation and higher rebates to support channel partners.

• Normalised business performance expected from Q2 FY25 as destocking subsides.

• SG&A (selling general and administrative expenses) lower by 19% YoY; on track to achieve $100 million savings in FY25 (on FY23 base).

• Announced rights issue of up to $500 million to repay debt.

• Company is exploring capital raise opportunities across platforms.

Shares of UPL rose 0.56% to Rs 533 apiece, as compared with a gain of 0.72% in the benchmark Nifty 50. The results were declared after market hours.