The company reported a 9 per cent year-on-year rise in consolidated revenue from operations to Rs 8,515 crore for the quarter, which was also below Street’s expectations.
The agro-chemical manufacturer retained its sales growth guidance of 7-10 per cent in 2021-22 and operating profit growth of 12-15 per cent in the same period.
In the reported quarter, the company saw a 6 per cent on-year growth in volume, aided by firm growth in Latin America and Indian market. In Latin America, the company’s sales grew 24 per cent year-on-year to Rs 2,507 crore led by the Brazilian market.
In India, UPL reported sales growth of 27 per cent on-year to Rs 1,914 crore helped by rebound in demand and higher prices.
Europe and the rest of the world segments were a problem area for the company. In Europe, sales declined 11 per cent on-year as adverse weather conditions and supply constraints weighed on performance. In the rest of the world segment, sales tanked 14 per cent on-year as Chinese and Japanese markets were impacted.
The price hikes undertaken by the company during the quarter did not help its operating performance surpass Street’s expectations. UPL’s consolidated operating profit grew 9 per cent on-year to Rs 1,862 crore, which was below analysts’ expectations of Rs 2,020 crore.
The company’s consolidated operating margins, however, expanded 12 basis points on-year to 21.9 per cent in the reported quarter.
Shares of UPL ended 1.8 per cent lower at Rs 805 on the National Stock Exchange.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
