UPL Ltd Q3 concall highlights –
Revenues at 13679cr, up 21 pc. Price, Forex, Volume contribution at 13pc,7pc,1pc each
EBITDA at 3035 cr, up 14 pc
NP – 1087 cr, up 16 pc
Region wise revenue, growth –
LATAM- 5974 cr, 28 pc
North America – 2745 cr, 30 pc
Europe – 1444cr, 3 pc
India – 1075 cr, 19 pc RoW – 2441 cr, 12 pc
Gross Debt at 32803 cr Cash and equivalents at 5275 cr
Cash flow from Ops in Q3 at 5070 cr
Advanta’s ( seeds business ) contribution ( included in consolidated numbers above )-
Sales at 912 cr, up 31 pc
GM at 61 pc, up 300 bps
EBITDA at 275 cr @ 30.1 pc, up 460 bps
UPL to receive Rs 1600 cr for 9.1 pc stake sale in UPL’s SAS ( sustainable agri solutions ) business
UPL received Rs 2400 cr ( aprox ) for 13.3 pc stake sale in Advanta to KKR
Stake sales are aimed to reducing UPL’s gross debt
Speciality chemicals business scaling up rapidly. Now clocking 1500 cr annual revenues vs 600 cr four yrs back. Aim to grow this vertical at 25 pc CAGR for next 3-4 yrs
UPL confident of good growth in Q4 as well on back of strong demand from India, North America
Aim to reduce net debt by 4000 cr by end of FY 23. Avg cost of debt in dollar terms is 7.1 pc
Industry witnessing tightening of working capital cycles due higher rates. Good for bigger players like UPL
Expect strong volume growth in Q4
Also expect to reduce inventory days
Agri commodity prices remaining strong. That’s keeping demand for agri inputs at good levels
As EBITDA contribution from Speciality chemicals business grows, will start reporting it separately
Finance cost in Q3 should be the peak number due debt reduction going fwd
Company better positioned vs peers as most others piled inventory onto the distributors due Covid and War related disruptions, while UPL didn’t
Disc: holding, biased
| Subscribe To Our Free Newsletter |
