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Below are Views On Revenues from operations of UPL increased 3% for Q3FY21 By Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

Revenues from operations of UPL increased 3% for Q3FY21 on YoY basis to Rs. 9,125 crore (Rs. 8,892crore).  EBITDA  was at Rs. 2,209 crore as against Rs. 2,076 crore  in the same quarter in the last year. There were 200bps higher gross margins driven by favorable mix of products and cost synergies . Strong margins, cost synergies and cost-optimization measures have augured well for the Company resulting in improved EBITDA margins at 24.2% . PAT grew 12%, to Rs. 793 crore (Rs. 707 crore). Company did the commissioning of the state of the art manufacturing facility in Jhagadia (Dist: Bharuch, Gujarat) for producing ‘Clethodim’- one of the largest post-emergence herbicides used to control perennial grasses in a wide variety of crops worldwide. We are bullish on the Company as it  is poised to outgrow the global crop protection industry through innovation of newer products led by its R&D capabilities and its strong global footprint and also de-leveraging its balance sheet will lead to re-rating of the multiples.

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