During Friday’s trading session, shares of a global provider of sustainable agriculture products and solutions surged nearly 9 percent, reaching a new 52-week high at Rs. 618 on BSE, after reporting a turnaround from a loss of Rs. 1,607 crores in Q3 FY24 to a profit of Rs. 853 crores in Q3 FY2 and EBITDA growth of 420 percent YoY.
With a market cap of Rs. 51,755.4 crores, the shares of UPL Limited closed in the green at Rs. 603.3, up by around 6.3 percent, as compared to its previous closing price of Rs. 567.65.
What’s the news
The fluctuations in the share prices were observed after UPL Limit announced the financial results for Q3 FY25, through the recent filings the stock exchanges.
For Q3 FY25, UPL Limited reported revenue from operations of Rs. 10,907 crores, registering a marginal decline of around 1.7 percent QoQ from Rs. 11,090 crores in Q2 FY25, but a rise of about 10 percent YoY from Rs. 9,887 crores in Q3 FY24.
This 10 percent revenue growth was primarily driven by a 9 percent rise in volumes, a 5 percent increase in pricing, and a 4 percent decline due to foreign exchange, particularly in Brazil. Additionally, volume growth in Latin American and European markets also played a pivotal role in driving revenue performance.
The company’s net profit for Q3 FY25 grew to a profit of Rs. 853 cro marking a significant turnaround from a net loss of Rs. 1,607 crores in FY24 and from a loss of Rs. 585 crores in Q2 FY25.
EBITDA for Q3 FY25 rose to Rs. 2,163 crores, reflecting a robust 4 percent YoY compared to Rs. 416 crores in Q3 FY24. Additionally, the EBITDA margin expanded by a substantial 1,560 basis points, rising from 4.2 percent to 19.8 percent during the same period.
The rise in EBITDA was led by contribution, productivity enhancement, and overhead savings, while the margins were improved through product mix, rebate normalization, and lower cost of goods sold (COGS).
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Stock Performance
The stock has delivered positive returns of nearly 17 percent in one year, as well as around 10 percent returns in the last six months. Similarly, the shares of UPL Limited have given positive returns of about 20.5 percent in the last one month.
About the Company
UPL Limited is principally engaged in the manufacturing and sale of pesticides, insecticides and micronutrients. The company is in the business of agrochemicals, industrial chemicals, chemical intermediates, specialty chemicals and the production and sale of field crops and vegetable seed
Written by Shivani Singh
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