UPL reports 29.7% growth in quarterly net profit, CEO says company chose to prudently invest despite challenges

Agro-chemicals major  United Phosphorus Limited (UPL) reported a 29.7 percent increase in consolidated net profit of Rs1379 crore in the quarter ending March, compared to Rs 1063 crore in the same period in the preceding fiscal year. The CNBC-TV18 poll had predicted the consolidated net profit as Rs1,367 crore.

The company's revenue grew 24 percent at Rs 15861 crore from Rs 12796 crore in the year-ago period. The CNBC-TV18 poll had prediction Rs14,853 crore as consolidated revenue.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 26.5 percent year-on-year to Rs 3592 crore from the previous Rs 2839 crore. The CNBC-TV18 poll had predicted the EBITDA as Rs3212 crore for the quarter in review.

The CNBC-TV18's poll prediction of the EBITDA margin was 21.6 percent. However, the company recorded 22.6 percent for the same, compared to 22.2 percent in the same period in the preceding fiscal.

The company said it adjusted net debt at Rs 18,254 crore year-on-year compared to the previous Rs 18,921 crore.

Marico revenue grows 7% in fourth quarter as domestic operations hold steady

"We are delighted to share a strong set of results for Q4 2022, and another record year for UPL. Thanks to the dedication, agility and tenacity of our team, we have been able to significantly outperform the guidance given at the start of the year, with nearly every region seeing double-digit growth," the company said in a statement.

"FY22 was a year of challenging macro-environment, input cost inflationary pressures and supply chain disruptions and we chose to prudently invest towards ensuring reliable growth going forward," the company's Chief Executive Officer (CEO) Jai Shroff said.

Guided by its OpenAg purpose to create sustainable growth for all, UPL achieved important milestones in its mission to build a network that 'reimagines sustainability' for the entire agricultural industry, he added.

"In a significant achievement for this mission, our digital platform nuture.farm became the first company to successfully forward sell agricultural-related carbon credits in India," he said.

Shares of the company on Monday closed at Rs777.55, down 1.18 percent on BSE.

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