Agrichemicals major UPL Ltd on 2 August reported a net loss of Rs 384 crore for Q1 FY25, as against a net profit of Rs 166 crore in the corresponding quarter a year ago, as lower product prices hit profitability. The earnings were worse than a Reuters-LSEG estimate.
Lower product prices hurt UPL's April-June quarterly results. While the revenue for the June quarter rose 1.2 percent on-year to Rs 9,067 crore, driven by 16 percent increase in volumes, 14 percent decline in price and a negative 1 percent Fx impact.
EBITDA fell to Rs 1,145 crore in the fiscal first quarter. This was down 28 percent year-on-year, the company said in a statement. There was a 14 percent drop in product prices, reported Reuters.
“Overall, for FY25, we continue to focus on margins, the benefit of which is expected to get more pronounced in the second half of the year. Our focus on cash generation continues, and we are optimizing our inventories and other working capital items,” the company said on the future outlook.
Commenting on the Q1FY25 performance, Ashish Dobhal, CEO, UPL SAS, said: “On our India Crop Protection business (UPL SAS), we continued our efforts to restructure the business through strict credit policies and tighter credit terms, which lead to a postponement of sales closer to season, and the consequent impact on Q1FY25 revenues. However our contribution margins and cash flows have improved and working capital reduced, giving us the confidence that this is the right structural move for us in India.”
UPL shares ended 5.1 percent lower at Rs 532. The stock has declined by 10% so far in 2024, the exchange data showed.
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