UPL Ltd Q1 Results FY2023, Net profit at Rs. 877 crores

On 1st August 2022, UPL Ltd announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The revenue from operations stood at Rs. 10821 crores, with a growth of 27% YoY, the revenue growth was driven by better product realizations (+18%), a favorable exchange rate (+3%), and higher volumes (+6%) 

- EBITDA grew by 26% YoY to INR 2,342 crore as against INR 1,862 crore in Q1 FY22. A significant uptick in realizations supported by efficient supply chain management aided in maintaining EBITDA margins despite inflationary pressures

- The company reported its Net Profit at Rs. 877 crores with a growth of 29% YoY.

Geographical Highlights:

- The Latin America region posted a revenue of Rs. 3464 crores with a growth of 38% YoY.

- The European region posted a revenue of Rs. 1728 crores with a growth of 13% YoY.

- The North American region reported a revenue at Rs. 1796 crores with a growth of 47% YoY.

- The Indian market reported revenue growth of 8% YoY with revenue at Rs. 2067 crores

- The regions from rest of the world reported revenue at Rs. 1765 crores with a growth of 31% YoY.

Business Highlights:

- UPL entered into a new supply agreement with Bayer for “Spirotetramat”, an insecticide to develop novel differentiated pest management solutions.

- UPL launched Zoatin, a bionutritional to increase crop health and yield in partnership with Christian Hansen. This is the first product to be launched from UPL’s global partnership with Christian Hansen to develop microbial biosolutions

- UPL and Bunge from a JV ‘Orígeo’ targeting large farms in a specific area of Brazil to increase Brazilian farmers’ sustainability, productivity, and profitability, subject to anti-trust approvals

- UPL launched new insecticides range in India containing the patented molecule ‘Flupyrimin’ to target the most damaging rice pests

Commenting on the results, Mr. Jai Shroff, CEO – UPL Ltd, said:  “After a strong end to FY2022, we continued to see solid growth momentum in Q1 FY23, asthe strong agri commodity prices drove the significant uptick in price realizations as well as healthy demand from growers. The EBITDA margin remained largely intact despite the significant input cost inflation and a challenging macroeconomic environment exacerbated by geopolitical issues. This was driven by proactive pricing actions coupled with efficient supply chain management that led to the strong topline growth getting translated into robust operating profitability growth as well. Powered by our OpenAg purpose, we continued to leverage collaboration as a catalyst for sustainable and lasting change. In partnership with the FIFA Foundation, we held the European launch of Gigaton Carbon Goal, a global initiative to sequester one billion metric tonnes of atmospheric carbon dioxide by 2040. And in Brazil, we announced a new agreement with Bunge to establish Orígeo, an innovative company providing end-to-end solutions to help increase farmer’s productivity, profitability and sustainability.

Moving on, as we look ahead to the rest of the year, we are well poised to continue our healthy growth momentum, as product realizations continue to remain strong, recent new launches continue to see good traction in the marketplace, and the overall demand outlook continues to be constructive. Considering this positive outlook, we have revised our FY23 guidance upwards, expecting to achieve a revenue growth of 12-15% now versus 10% earlier, and EBITDA growth of 15-18% versus 12-15% earlier.”