Demand, margin gains ahead for UPL

Agrochemicals manufacturer UPL reported a muted quarter as operating profit remained flat on a year-on-year (Y-o-Y) basis, due to a price decline (down 7 percent Y-o-Y) and surplus capacity in China.

- DEVANGSHU DATTA

Volumes grew 16 percent, resulting in revenue growth of 9 percent Y-o-Y.

UPL expects improvement in the global business, with inventory destocking near completion. The margins are also expected to see a significant uptick in the second half led by lower-cost inventory, increase in high-margin product sales, favorable regional mix, and margin expansion in India. Thus, the prospects going ahead seem positive due to the expected margin recovery and mid-single-digit volume growth.

UPL reported revenue of ₹11,090 crore in Q2FY25, up 9 percent Y-o-Y, with volume growth of 16 percent offsetting price decline of 7 percent. Operating profit was flat over the year ago quarter at ₹1,580 crore.