Shares of UPL (formerly known as United Phosphorus) have moved higher by 3% to Rs 555, also its record high on the BSE, in an otherwise weak market. The shares of the company, which is engaged in the agrochemicals business, rallied 28% from Rs 434 on April 24, after the company reported a strong set of numbers for the fourth quarter ended March 31, 2015 (Q4FY15). The benchmark S&P BSE Sensex gained less than 1% during the same period. The company’s consolidated net profit jumped 77% year on year (YoY) at Rs 440 crore in Q4FY15 on the back of healthy operational performance.
The company had posted a profit of Rs 249 crore in the corresponding quarter of previous fiscal. A shift in geographic mix, and, consequently, product mix helped gross margin to expand by 37 basis points (bps) YoY to 48.7%. The benefits of operating leverage helped EBITDA margin to expand 152bp to 21.7%. “The company’s product launches with strategic focus on label extension (extension of solution of fruits and vegetables to corn and soybean), the use of five power brands in each geography for launching new products, and product in newer crops are likely to auger well and help to maintain earning growth momentum”, said analyst at Elara Securities in report dated April 28. Meanwhile, UPL and seven other companies have been included in MSCI India Index from the close of trading on May 29.