UPL Result Update : Numbers are looking really strong Says Anmol Das, Teji Mandi
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Below is perspective on UPL Ltd Quarterly Result by Mr Anmol Das, Head of Research, Teji Mandi
1. There is a definite beat as far as UPL numbers are concerned and it has come on the margin front as it is up 30bps from the estimates and higher by around 300bps on a YoY basis. This is on account of improved realizations, better product mix and efficient supply chain management.
2. Profits at Rs 814 crore are slightly lower on account of higher finance cost both on a QoQ and on a YoY basis so that has led to lower profits than estimates. However, profits are still up 29% YoY.
3. This time around the expectation was of strong growth across geographies especially Latin America which is where the majority chunk of the revenues comes in and the same is visible in the numbers are the company has reported 20% odd growth in revenues. Having said that some weakness was expected in Europe as well.
4. These numbers are looking really strong and it is definitely a margin led beat including some favorable FX which is why the management has reiterated its FY23 guidance. The company says that they are confident of meeting FY23 revenue guidance of 12-15% and EBITDA growth guidance of 15-18% along with reduction in net debt by $650 million.
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