Home / Business and Economy / UPL Ltd Sees Profit Soar 20%, Beats Expectations
UPL Ltd Sees Profit Soar 20%, Beats Expectations
11 May
Summary
- UPL Ltd's net profit rose 20% to ₹1,294 crore in the March quarter.
- Revenue increased by 18% to ₹18,335 crore driven by strong demand.
- Company successfully reduced net debt and is planning a business demerger.
UPL Ltd has reported a robust financial performance for the March quarter, with a 20% surge in net profit to ₹1,294 crore compared to ₹1,079 crore in the previous year. This growth was driven by strong demand and enhanced profit margins, leading to an 18% increase in revenue to ₹18,335 crore.
The company's EBITDA saw a 13% rise, reaching ₹3,646 crore. UPL Ltd also made substantial progress in deleveraging its balance sheet, with net debt reducing to ₹15,325 crore and the net debt to EBITDA ratio improving to 1.6 times.
Looking ahead, UPL Ltd is embarking on a strategic demerger of its operations into two distinct listed entities. This move aims to create a focused agriculture and speciality chemicals platform alongside a dedicated crop protection business.
Despite uncertainties stemming from geopolitical events in West Asia, UPL Ltd has provided guidance for Q1 FY'27, anticipating revenue growth of 10-14% and EBITDA growth of 14-18%. The company noted that tariffs on imports from China offer a competitive advantage over competitors sourcing from China into North America.
