UPL Ltd.'s third-quarter profit met estimates on higher revenue growth in Latin American markets.
The agro-chemical maker reported a net profit of Rs 701 crore for the three months ended December, according to its exchange filing. That compares with Rs 693.5 crore that analysts surveyed by Bloomberg had forecast. The numbers are not comparable due to the firm's acquisition of U.S.-based Arysta Lifescience Inc. last year.
Revenue stood at Rs 8,892 crore—analysts had pegged the top line at Rs 9,173 crore. The company, in its presentation, said the Latin American business grew 21 percent year-on-year to Rs 4,203 crore [adjusted for Arysta acquisition]. Brazil crop protection demand on soybeans benefitting from the U.S.-China trade war and higher export duties levied in Argentina were the factors aiding the performance in South America, the firm said. The domestic business, too, rose 41.5 percent year-on-year to Rs 750 crore.
Operating profit or earnings before interest, tax, depreciation and amortisation was at Rs 2,070 crore for the three-month period—the estimate was Rs 1,883 crore. The company's operating margin stood at 23.3 percent—higher than the analysts' forecast of 20.5 percent.
The Mumbai-based firm said that the tax authorities conducted search at multiple premises of the company last month. “We continue our engagement with the authorities and expect this process of review will continue for some time,” it said.
Shares of UPL closed 1.2 percent higher ahead of the results announcement on Friday compared with the NSE Nifty 50 Index's 0.4 percent fall.
(Corrects an earlier version that misstated the percentage rise in domestic business.)
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