UPL Q3 net may jump 27% on strong operational performance

UPL, erstwhile United Phosphorous, will declare its third quarter (October-December) earnings today. According to CNBC-TV18 poll, analysts on an average expect consolidated net profit to rise 27 percent to Rs 220 crore compared to a year ago period, led by strong operational performance.

Total income is likely to jump 16 percent year-on-year to Rs 2,620 crore in the quarter ended December 2013, driven by steady growth across markets.

Earnings before interest, tax, depreciation and amortisation or operating profit during the quarter may surge 32 percent to Rs 480 crore, and margin may expand 230 basis points to 18.3 percent on better operating leverage year-on-year.

Update on season in the US and Rabi crop in India will be closely watched by the street.

Analysts will also watch out for any revision in outlook for FY14, considering favorable climatic patterns and weaker rupee.

Status of integration of DVA Agro and Turnaround at units in Brazil will be tracked as well.

Meanwhile, the board of directors of the company on December 30, 2013 approved the buy-back of equity shares upto 1.4 crore equity shares at a price not exceeding Rs 220 per share. The company will spend cash upto an aggregate amount not exceeding Rs 308 crore for the buyback.