UPL Q3FY22 Preview: Revenue seen at Rs. 103,171 million, adjusted PAT at Rs. 9,722 million

31 Jan 2022 , 08:13 AM

Result date: 31^st January, 2022
Recommendation: Buy
Target price: Rs. 819

(Source: IIFL Research)

UPL could post double digit revenue growth during the quarter as compared to the same quarter of previous year. Strong momentum in LatAm, North America and Europe could fuel revenue growth. However, back home, company may report weak performance amid erratic weather conditions, sales returns due to excess channel inventory and a weak Kharif season.

Margin contraction could be restricted by price hikes and higher share of revenues from high-margin markets. Pressure of input cost inflation will still have some bearing on margins.

Net profit growth is likely to be elevated owing to the low base of Q3FY21 wherein the company had posted a forex loss worth Rs. 2 billion.
 
Important management insights to watch out for:

• Demand trends in domestic markets
• Outlook on input costs, margins

 

Rs. Million	December 2021 estimates	YoY change
Revenue	103,171	13.1%
EBITDA	24,331	10.2%
EBITDA margin (%)	23.6%	(61 bps)
Adj. net profit	9,722	35.8%

Source: Company, IIFL Research