UPL posted a 166% jump in consolidated net profit to Rs 537 crore in Q2 September 2020 from Rs 202 crore in Q2 September 2019.Consolidated revenue from operations came at Rs 8,939 crore in Q2 September 2020, 14.35% higher than Rs 7,817 crore in the same quarter last year. The result was announced after market hours today, 30 October 2020.
Profit before tax (PBT) stood at Rs 655 crore in Q2 September 2020, rising 112% from Rs 309 crore in the corresponding period last year. Current tax fell 25% year on year to Rs 201 crore in Q2 September 2020.
EBITDA grew 17% to Rs 1,808 crore in Q2 September 2020 from Rs 1,541 crore in Q2 September 2019. EBITDA margin remained unchanged at 20% in Q2 September 2020 over Q2 September 2019.
India continued to deliver strong growth in Q2 resulting in 18% growth during the quarter, followed by Rest of the World at 27% and then the other regions.
In India, UPL saw robust growth in key products including pre-emergent herbicides and sustainable solutions. Despite the COVID-19 lock down, India continued to deliver record collections.
Rest of the World growth is attributed to the strengthening of the company's B2C model in China with higher focus on value brands. Additionally, new product launches in Vietnam and other SE Asian countries yielded positive results. Normalisation of weather patterns contributed to the strong performance in South Africa, Australia and New Zealand.
Commenting on company's performance, Jai Shroff, CEO of UPL said, "Combined with favourable agronomic conditions, UPL was able to deliver strong revenue and EBIDTA growth in the second quarter, as well as solid results for the first half of 2020. UPL has gained substantial market share in many markets and our volume growth has been very promising. As we continue to build out a pipeline of innovative products, we expect that our market share will continue to improve further still."
UPL maintained its guidance of 6-8% growth in revenue and 10-12% in EBITDA. The growth will be driven by a focus on differentiated solutions as well as new product launches. Price increases in local currencies and cost savings will support margins.
As of 30 September 2020, UPL's net debt was Rs 23,841 crore, higher by Rs 1,781 crore compared to 31 March 2020 mainly due to an increase in working capital of Rs 2,915 crore, in line with the seasonality of the business. The company said it is committed to reducing net debt in H2 and maintaining an investment grade credit rating.
Shares of UPL closed 0.58% higher at Rs 453.15 on BSE.
UPL is a global provider of sustainable agriculture products & solutions, with annual revenue exceeding $5 billion.
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