UPL's Q2FY24 Financial Performance Review
In this financial performance review, we delve into the results of UPL for the second quarter of fiscal year 2024 and analyze key metrics, including revenue, expenses, net profit, and margin.
| Particulars | Q2FY23 | (Y-o-Y) % change | Q1FY24 | (Q-o-Q) % change | Q2FY24 |
| Total Income (₹crs.) | 12,507 | -17.85 | 9,064 | 13.36 | 10,275 |
| Expenses (₹crs.) | 11,315 | -8.33 | 9,026 | 14.92 | 10,373 |
| Net Profit (₹crs.) | 969 | -130.24 | 102 | -387.25 | -293 |
| Margin (%) | 7.75 | -10.60 | 1.13 | -3.98 | -2.85 |
REVENUE:
UPL reported a total income of ₹10,275 crores for Q2FY24, which represents a 13.36% increase sequentially. However, on a year-on-year basis, the company faced a significant -17.85% decline in total income. This decline can be attributed to various factors impacting the agrochemical industry, including global supply chain disruptions and changes in demand dynamics.
EXPENSES:
Expenses for UPL in Q2FY24 amounted to ₹10,373 crores, marking a 14.92% increase compared to the preceding quarter. On a year-on-year basis, expenses decreased by 8.33%. The increase in quarterly expenses may be linked to seasonal patterns and increased operational costs. Despite these challenges, UPL has maintained prudent cost management, resulting in a reduction in year-on-year expenses.
NET PROFIT:
The net profit for UPL in Q2FY24 showed a significant decline, amounting to -₹293 crores. This is in stark contrast to the net profit of ₹969 crores in the same quarter of the previous fiscal year, reflecting a YoY decrease of 130.24%. On a quarterly basis, the company reported a net profit of ₹102 crores, reflecting a decline of 387.25%. The sharp decrease in net profit is a notable aspect of UPL's performance and requires further examination.
MARGINS:
UPL's margin for Q2FY24 was -2.85%, reflecting a 3.98% decline compared to the preceding quarter. Year-on-year, the margin witnessed a significant decrease of 10.60%. The negative margin suggests that UPL incurred losses during this quarter, possibly due to the challenges faced in the agrochemical sector.
In conclusion, UPL's financial performance in Q2FY24 has been marked by a significant decline in net profit and a negative margin. The agrochemical industry has faced various challenges, and these results indicate the need for the company to adapt to changing market conditions.
It is essential for UPL to focus on strategies to address the issues impacting its profitability. Investors and stakeholders should closely monitor the company's actions in response to these challenges.
Stay tuned for more updates on UPL's financial performance in the future.