UPL on Tuesday said its consolidated net profit rose 25.19 per cent to Rs 969 crore in the second quarter of FY23 on strong sales, and also announced that founder Rajju Shroff has stepped down as CMD.
The agro-chemical company had posted a consolidated net profit of Rs 774 crore during the second quarter previous year. "Due to ongoing war between Russia and Ukraine, and the sanctions in the region, the Group's business has been impacted to some extent," the company said in a regulatory filing.
Shroff, 90, due to advancing age has expressed his desire to step down from his dual responsibility as Chairman and Managing Director (CMD) and now wishes to devote full time for social causes and focus on improving Indian agriculture and chemical industry, UPL said in the filing.
Shroff will become 'Chairman Emeritus' of the Board, effective from December 1, 2022, it added.
The company's board has designated Jai Shroff, non-executive director, as the Chairman of the Board with effect from December 1, 2022.
UPL board also accepted resignation of Arun Ashar, whole-time director - finance, with effect from December 1.
Ashar, due to advancing age (74 years), expressed his desire to get relieved from the responsibilities as a full-time board member and Anand Vora, Global CFO, will assume all his current responsibilities, the company said.
The board also accepted resignations of Pradeep Goyal and Reena Ramachandran as independent directors with effect from December 1, 2022.
Meanwhile, the company reported 18 per cent growth in revenue during the quarter ending September 30, at Rs 12,506 crore compared to Rs 10,567 crore in the same period last year.
"We continued to see robust growth momentum in the second quarter of FY23 with 18 per cent YoY. Our focus on quality growth with a better product mix and proactive pricing actions drove a strong 35 per cent YoY growth in EBITDA, with EBITDA margins expanding by 278 bps," UPL Ltd CEO Jai Shroff said.
He said, as a group, the company's top priority is creating value for shareholders and in this line UPL recently announced a strategic corporate realignment initiative, creating distinct pure-play platforms to accelerate growth and unlock value for shareholders.
"We have brought on-board marquee investors such as ADIA, Brookfield, KKR and TPG, who have collectively invested around Rs 4,000 crore (USD 500 million) for minority stakes in our India Agtech and Global Seeds Business Platforms.
"Going forward, we are well poised to continue our healthy growth momentum in the second half of the year and we are confident of meeting our FY23 guidance of revenue growth of 12-15 per cent, EBITDA growth of 15-18 per cent and reducing net debt by USD 650 million," he added.
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