Demand and margin gains ahead for agrochemicals manufacturer UPL

UPL reported revenue of Rs 11,090 crore in 2QFY25, up 9 per cent Y-o-Y, with volume growth of 16 per cent offsetting price decline of 7 per cent

UPL reported a muted quarter as operating profit remained flat on a year-on-year (Y-o-Y) basis, due to a price decline (down 7 per cent Y-o-Y) and surplus capacity in China. Volumes grew 16 per cent, resulting in revenue growth of 9 per cent Y-o-Y.

 

UPL expects improvement in the global business, with inventory destocking near completion. The margins are also expected to see a significant uptick in the second half led by lower-cost inventory, increase in high-margin product sales, favourable regional mix, and margin expansion in India. Thus, the prospects going ahead seem positive due to the expected margin recovery