The shares of the agriculture solution provider gained up to 7 percent after the company’s revenue increased by 41 percent and net loss decreased by 95 percent QoQ in the fourth quarter.
With a market capitalization of Rs 39,839 crore, the shares of UPL Ltd were trading at Rs 530.90 per share, increasing around 6 percent as compared to the previous closing of Rs 501.95 apiece.
Looking into the company’s performance, UPL Ltd’s revenue increased by 41 percent on a quarter-on-quarter basis from Rs. 10,038 crore in Q3FY24 to Rs. 14,204 crore in Q4FY24. Further, revenue increased by 15 percent year on year, from Rs. 16,780 crore in Q4FY23 to Rs. 14,204 crore in Q4FY24.
UPL Ltd’s net loss decreased by 95 percent on a quarter-on-quarter basis, from Rs. 1,607 crore in Q3FY24 to Rs. 80 crore in Q4FY24. Further, net profit decreased by 108 percent year on year from a profit of Rs. 1,080 crore in Q4FY23 to a loss of Rs. 75.70 crore in Q4FY24.
The company’s profitability measures show a decline in return on equity (RoE) from 16.72 percent in FY 21-22 to 13.29 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 13.67 percent to 13.64 percent. In contrast, the net profit margin (NPM) was 7.94 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 32.34 percent while Retail shareholders own an 18.68 percent stake in the company and domestic Institutional Investors own a 15.33 percent stake.
UPL Ltd, a global agrochemical company, operates in over 130 countries. With a revenue of $5.5 billion in FY23, it’s a key player in crop protection solutions. UPL’s diverse portfolio includes herbicides, insecticides, and fungicides. It aims for sustainable agriculture, focusing on innovation and farmer empowerment.
UPL Limited is an India-based company that provides crop protection solutions. The Company is principally engaged in the agro-business of production and sale of agrochemicals, field crops, and vegetable seeds, and non-agro-business of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals.
Written by:- Abhishek Singh
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