UPL Ltd's Q3FY19 consolidated adjusted EBITDA increases 22.6% yoy to Rs1,016cr : In-line with Estimates

The company’s consolidated revenue stood at Rs4,921cr, up 17.33% yoy and 15.6% qoq.

Jan 31, 2019 03:01 IST India Infoline Research Team

UPL Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 4,921 17.3
EBITDA 1,016 22.6
EBITDA Margin (%) 20.7 88
Net Profit (adjusted) 552 [5.0]
***EBITDA margin change is bps
UPL's consolidated revenue for Q3FY19 came in at Rs4,921cr, an increase by 17.3% yoy. The operating profit (excluding forex impact on trade receivables / payables and exceptional items) for the quarter stood at Rs1,016cr, a rise by 22.6% yoy. The adjusted EBITDA margin expanded by ~88bps yoy to 20.7% in Q3FY19. The adjusted net profit attributable to shareholders (excluding exceptional items) for the quarter came in at Rs552cr, down 5% yoy. The revenue, EBITDA and adjusted net profit are in-line with the estimates.

• Revenue growth was majorly driven by improvement in realization by 7% yoy followed by volume growth of 8% yoy (constant currency growth of 13% yoy) during the quarter. Foreign exchange resulted into positive growth of 5% in the top-line.
• Revenues in Latin American market grew significantly by 26% yoy on account of successful fungicide campaigns pushing sales, currency stability and traction across insecticides in Brazil.
• UPL witnessed strong revenue growth in North America (+21% yoy) and Europe (+37% yoy), despite erratic climatic conditions across selected areas. Europe business was aided by traction in Mancozeb WG in France and Metamitron technical in Russia coupled with passing of inflationary input costs to maintain margins.
• India business remained subdued during the quarter (down 21% yoy) due to inconsistency in rainfall, lower acreages during the existing rabi season and ban on use of organophosphorus compounds in several states.
• The finance cost (excluding forex impact) of the company increased by 14.5% to Rs198cr in Q3FY19. The forex loss on foreign exchange loans amounts to Rs4cr in Q3FY19 vs. forex gains of Rs62cr in Q3FY18.
• The adjusted net profit (excluding exceptional items) was also impacted due to forex translation losses on trade receivables and payables of Rs78cr during Q3FY19 vs. Rs113cr during Q3FY18.
• The exceptional items for the period includes cost related to proposed acquisition of ‘Arysta LifeScience Inc’, restructuring in Latin America segment and loss on dilution in associate companies.

Technical View:

UPL Ltd ended at Rs. 787.75, up by 21.95 points or 2.87% from its previous closing of Rs. 765.80 on the BSE.
The scrip opened at Rs. 765 and touched a high and low of Rs. 790 and Rs. 764.40 respectively. A total of 24,16,524 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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