The shares of agrochemical manufacturing gained up to 1 percent after the company announced the acquisition of a Thailand-based company worth 22000 USD.
With a market capitalization of Rs 46,186.55 crore, the shares of UPL Limited were trading at Rs 604.50 per share, increasing around 0.45 percent as compared to the previous closing price of Rs 601.80 apiece.
Reason for rise:-
Today the company share has seen positive movement after UPL Limited announced the acquisition of Advanta Holdings Limited, a Thailand-based company worth 22000 USD by its step-down subsidiary Advanta Seeds Holdings UK Limited. This acquisition of Advanta Thailand is to carry out seeds and related business.
Advanta is a hybrid seed development pioneer, with over 60 years of R&D expertise and 33 research locations in 11 countries. They provide 900+ seed variants for 40+ crops and run 30+ production locations in 24 countries, delivering to 80+ nations. A 600-person sales force guarantees worldwide market penetration.
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Financial condition & revenue split:-
Looking forward to the company’s financial performance, revenue increased by 2 percent from Rs 8,963 crore in Q1FY24 to Rs 9,067 crore in Q1FY25, during the same period, net profit plummeted by 600 percent from a profit of Rs 102 crore to a loss of Rs 527 crore.
Looking into the company revenue split, 40 percent of revenue comes from Latin America, 15 percent from Europe,9 percent from North America, 13 percent from India, and the remaining 23 percent from the rest of the world.
Ratio Analysis:-
The company’s profitability measures show a decline in return on equity (RoE) from 13.29 percent in FY 22-23 to (4.83) percent in FY 23-24, while, during the same period return on capital employed (RoCE) decreased from 13.64 percent to 3.72 percent. In contrast, the net profit margin (NPM) was (3.79) percent in fiscal year 23-24.
Company profile:-
UPL Limited’s primary business is the manufacturing and distribution of agrochemicals, field crops, and vegetable seeds, as well as the non-agro business of producing and selling industrial chemicals, chemical intermediates, and specialty chemicals.
Written by:- Abhishek Singh
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