United Phosphorus Q3 net rises 33%, misses forecast

Chemicals maker United Phosphorus's quarterly net profit rose a third, below estimates, hurt by losses in associate companies despite robust overseas sales.

The company, which makes crop protection products and industrial chemicals, said consolidated net profit rose to Rs 112 crore in October-December from Rs 83.57 crore a year earlier.

Analysts estimated the profit at Rs 132 cr, according to Thomson Reuters StarMine.

Sales surged more than 57% to Rs 1,872 crore, the company said, driven by jump in overseas sales which comprise 80% of its revenues.

Its sales in North America zoomed 62% in October-December, while those in Europe grew 31% as compared to 15% growth in its home market India.

Combined loss from associate companies -- India's Advanta Group and Brazil-based Sipcam UPL, stood at Rs 12.36 crore in December quarter, compared to an income of Rs 5 crore over the same period last year.

"Although the operating margins are steady at 18%, growth from the domestic market will remain a challenge," Sageraj Bariya, co-founder at research firm Equitorials, said.

"Demand scenario in India is not going to be good... also, a lot of smaller companies have cropped up in the segment giving a tough competition."

Shares in United Phosphorus fell 3.54% to Rs 144.35 by (0305 IST) in a weak Mumbai market.