UPL Q3 results: Net profit at Rs 828 cr on higher agrochemical deman

India's UPL swung to quarterly profit on Friday helped by higher demand for agrochemical products following an above-average monsoon, while its costs fell.

The company reported a consolidated net profit of Rs 828 crore ($96 million) for the three months ended December 31 against a loss of Rs 1,217 crore a year earlier. It posted losses in the previous two quarters.

Revenue from operations rose 10 per cent to Rs 10,907 crore.

Total expenses fell 11 per cent aided by a 16 per cent drop in cost of raw materials consumed during the quarter.

Key context  India witnessed its highest monsoon rainfall this year since 2020, which aided sowing, as the annual showers provide 70 per cent of the rain needed to water farms and replenish reservoirs and aquifers.

Peer Deepak Fertilisers and Petrochemicals has posted a more-than-four-fold rise in its quarterly profit, aided by strong demand for its crop nutrition products.

Analysts at Elara Capital said in a pre-earnings note that fertilizer companies would post healthy earnings growth in the third quarter, driven by volume growth in the urea business.