UPL Q1 Results: Revenue, operating profit growth guidance cut on demand headwinds

For the June quarter, all of the company's key geographies reported a decline in revenue when compared to the June quarter last year except for the Rest of the World business, which grew by 3 percent year-on-year.

For the June quarter, UPL reported a net profit of Rs 166 crore, which was well below CNBC-TV18's poll of Rs 262 crore. The company's revenue of Rs 8,963 crore, also missed expectations of Rs 9,790 crore.

However, the company's operating profit or EBITDA of Rs 1,952 crore beat expectations of Rs 1,561 crore, while EBITDA margin was also higher than estimates by nearly 200 basis points.

The company said that one of their key focus areas has been to improve cash flows and strengthen the balance sheet. It reduced debt by $160 million compared to June last year. It also plans on undertaking a cost reduction initiative of $100 million over the next 24 months, half of which will be realised in the current financial year itself.

UPL's raw material costs fell 20 percent from last year, while total costs were down 7.7 percent, contributing to the operating performance of the company.

Shares of UPL are little changed at Rs 624.35.