Gains in UPL hinge on reduction of debt, improved cash flow generation

Higher demand to keep revenue growth strong in the second half of FY23

The country’s largest agrochemical player, UPL, beat revenue growth expectations in the July-September quarter (second quarter, or Q2) on the back of higher realisations. While volumes in the quarter declined 7 per cent, a 21 per cent jump in prices and favourable foreign exchange led to an 18 per cent year-on-year growth in the top line.

This is the fourth consecutive quarter of double-digit pricing growth. While Europe disappointed with a growth of 1 per cent, most large geographies, such as Latin America, India, and North America, outperformed with growth of over 20 per cent each.

On the profitability front,