Latin America performance steadies the ship for UPL, say analysts

India, European biz underperformed, but the firm has maintained its FY20 revenue guidance

UPL’s moderate 7 per cent growth and below-expectation profit in the June quarter have affected the Street’s sentiments. The stock has corrected about a fifth over the past month, given the underperformance in key markets, one-offs, and higher taxes.

India sales, which constitute about 15 per cent of the total, were down 8 per cent year-on-year due to the delays in crop sowing because of a deficient monsoon. Even European sales (about a fifth of overall) were affected due to the unprecedented heat wave, which led to uncertainty among farmers. Sales in Europe declined 3 per cent.

Despite a subdued domestic environment