UPL soars on expectation of net debt reduction

UPL spurted 12.09% to Rs 403.80 after the company said it expects its net debt to reduce to approximately $2.9 billion as of 31 March 2020.

UPL during market hours today said that it expects its net debt to be at approximately $2.9 billion as of 31 March 2020, lower than $3.8 billion as of 31 March 2019 and $4.2 billion as of 31 December 2019.

The same represents a reduction in net debt of approximately $900 million and $1.3 billion as compared to 31 March 2019 and 31 December 2019, respectively.

The company has cash/cash equivalent of approximately $875 million as of 31 March 2020.

UPL further stated that it presently continues to see demand in line with the expectations as the farming season continues to be normal across the world. This is being supported by governments across the world to strengthen their security of food supply.

UPL reported 77.54% jump in consolidated net profit to Rs 838 crore in Q3 December 2019 (Q3 FY20) from Rs 472 crore in Q3 December 2018 (Q3 FY19). Revenue from operations surged 80.69% to Rs 8,892 crore in Q3 December 2019 as compared to Rs 4,921 crore in Q3 December 2018.

UPL manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers crop protection solutions.

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