UPL Q2 FY22 PAT spurts 37% to Rs 634 cr

On a consolidated basis, UPL's net profit jumped 36.9% to Rs 634 crore on a 18.2% surge in net sales to Rs 10,567 crore in Q2 September 2021 over Q2 September 2020.

During the quarter, volumes increased by 15% Y-o-Y (year-on-year) while prices rose by 3% Y-o-Y. In India, revenues added 5% to stand at Rs 1,483 crore in Q2 September 2021 as against Rs 1,409 crore in Q2 Sepember 2020. On a consolidated basis, EBITDA grew 13% to Rs 2,045 crore in Q2 FY22 as compared to Rs 1,808 crore in Q2 FY21. EBITDA margin stood at 19.4% in Q2 September 2021 from Rs 20.2% in Q2 September 2020.

EBITDA was driven by a strong contribution even in a disruptive supply-chain and inflationary environment, partially offset by long-term investments in digital platform of Rs 81 crore. Without considering this investment, the EBITDA margin is at 20.1%, in line with last Q2.

Commenting on the Q2 performance, Jai Shroff, the chief executive officer (CEO) of UPL, stated, "We are pleased to announce a strong set of results in a difficult environment. This is an evidence of the efficient management of our supply chain through backward integration, focus on innovation and agility of the team. We delivered 14% growth in revenues and 11% growth in EBITDA in H1. UPL is committed to a goal to reimagine sustainability. In September 2021, we signed the Climate Pledge. UPL is committed to reducing the atmospheric Co2 equivalent 1 Gigaton by 2040. We are driving the adoption of digital solutions in agriculture through our digital platform and have onboarded 1.4 million farmers in India till date. We continue to make long-term strategic investments in this digital platform to transform agriculture in India and around the world. We are grateful to our teams and all stakeholders and are committed to deliver profitable and sustainable results."

Shares of UPL dropped 3.75% to Rs 713 on BSE. UPL is a global provider of sustainable agriculture products & solutions. Through OpenAg, UPL is focused on facilitating progress for the entire agricultural value chain.

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