UPL Ltd.'s profit missed estimates in the June quarter because of an exceptional loss and higher depreciation and finance costs.
Net profit of the agrochemical company stood at Rs 178 crore in the April-June period, according to its exchange filing. Analysts tracked by Bloomberg had estimated net profit at Rs 507 crore. UPL suffered an exceptional loss of Rs 72 crore due to costs related to acquisition of Arysta Lifesciences Ltd., among others.
UPL had reported a profit of Rs 510 crore in the year-ago period, aided by an other income of Rs 123 crore. The year-on-year profit figures can't be compared as the company started incorporating financials of Arysta Lifesciences starting quarter ended March 31, 2019.
The company's revenue stood at Rs 7,906 crore in Q1—in line with the Rs 7,732-crore estimate. Its operating profit stood at Rs 1,246 crore, lower than the Rs 1,574-crore forecast.
On Wednesday, UPL shares rose 3.80 percent to Rs 595.50 apiece on the BSE while the benchmark Sensex gained 0.22 percent to end the day at 37,481.12 points. The UPL Q1 results were declared after market hours.
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