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UPL Q4 earnings beat estimates, profit jumps 74%; FY21 EBITDA exceeds guidance

The agrochemical company's board has recommended a dividend of Rs 10 per equity share.

May 12, 2021 / 06:02 PM IST
 
 
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Agrochemical company UPL on May 12 registered an all round beat on March 2021 quarter earnings, with consolidated profit rising 74 percent year-on-year to Rs 1,361 crore on strong operating growth.

The profit was also higher due to lower exceptional cost at Rs 80 crore in Q4FY21 against Rs 171 crore in the corresponding period of the previous fiscal.

Exceptional cost of Rs 80 crore reported for the quarterly mainly included the cost related to restructuring in Europe, provisions related to litigation costs in North America, and fire incident in India, the company in its BSE filing.

Consolidated revenue from operations grew by 14.8 percent to Rs 12,796 crore compared to the year-ago quarter, with volume growth at 18 percent and price increase of 1 percent, the company said.

The company's board has recommended a dividend of Rs 10 per equity share.

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Numbers were ahead of the CNBC-TV18's analyst polls that pegged profit at Rs 986 crore on revenue of Rs 12,167 crore.

On the operating front, EBITDA (earnings before interest, tax, depreciation and amortisation) rose 31 percent year-on-year to Rs 2,839 crore, and margin increased by 270 bps YoY to 22.2 percent in the quarter ended March 2021, driven by strong margin and cost synergies. A CNBC-TV18 poll estimates for EBITDA and margin were Rs 2,587 crore and 21.3 percent, respectively.

In the COVID-marred FY21, UPL achieved its guidance for revenue growth of 6-8 percent and surpassed EBITDA guidance of 10-12 percent growth.

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Consolidated profit for the full year surged 60 percent to Rs 3,495 crore and revenue grew by 8.2 percent to Rs 38,694 crore compared to the previous year. EBITDA jumped 20 percent to Rs 8,559 crore and margin expanded 230 bps to 22.1 percent in FY21.

"Despite being an incredibly tough year, UPL delivered growth through continuously innovating and transforming, and adapting to the constantly changing situation as best it can. The financial performance in FY21 has demonstrated the resilience of our model in COVID times. Despite the situation, we have delivered on our stated commitments of revenue and EBITDA," said Jai Shroff, CEO at UPL.

The company said it also continued to deliver on its commitment to deleverage the company's balance sheet and reduced the gross debt by 5,039 crore and net debt by Rs 3,140 crore.

The business from Latin America registered a 40 percent growth in Q4 at Rs 4,767 crore YoY and an 8 percent rise in FY21 at Rs 14,863 crore over FY20.

"The strong volume growth in Latin America was helped by the catch-up of a delayed season in Brazil. However, the depreciation in the Brazilian Real more than offset the volume and price increases," said UPL.

The European business grew by 17 percent to Rs 2,577 crore in the March quarter and 12 percent to Rs 6,422 crore in FY21, YoY. The revenue from the North American region increased moderately to Rs 2,539 crore in Q4FY21 from Rs 2,531 crore in Q4FY20 and rose by 1 percent to Rs 5,691 crore in FY21 YoY.

In India, the company registered a 23 percent YoY revenue growth in Q4 at Rs 851 crore and a 22 percent increase in FY21 revenue at Rs 4,677 crore. The Rest of World grew by 11 percent to Rs 2,063 crore in Q4 and 3 percent to Rs 7,042 crore in FY21, YoY.

"North America was impacted by supply constraints, while Europe and India continued to maintain strong volume growth. In the Rest of the World, Asia had a strong growth while the AMEANZ region was flat over last year," said UPL.
Moneycontrol News
TAGS: #Results #UPL
first published: May 12, 2021 06:01 pm

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