UPL Ltd

UPL announced that an Extra Ordinary General Meeting (EGM) of the Company will be held on 28 March 2024 .

Powered by Capital Market - Live News

The National Stock Exchange (NSE) of India announced adjustments to its prominent indices, the Nifty 50 and Nifty Next 50, effective 28 March 2024. These changes are part of the exchange's regular, bi-annual review process.

The Nifty 50, which tracks the performance of the 50 largest and most liquid companies in India, will see the exit of UPL. This will be offset by the inclusion of Shriram Finance.

The Nifty Next 50, which focuses on the next 50 largest and most liquid companies after the Nifty 50, will undergo a more substantial reshuffle. Five companies - Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care, and Shriram Finance - will be excluded. Taking their place will be Adani Power, Indian Railway Finance Corporation (IRFC), Jio Financial Services, Power Finance Corporation, and REC.

These changes will come into effect at the close of trading on 27 March 2024. The NSE's periodic review process ensures that the indices accurately represent the Indian stock market and provide valuable insights for investors, financial advisors, and market participants.

Powered by Capital Market - Live News

Shares of Shriram Finance rose 1.17% to currently trade at Rs 2,376.40 while those of UPL shed 0.94% to Rs 471.30.

The above replacement will also be applicable to Nifty50 Equal Weight index.

Meanwhile, Adani Power, Indian Railway Finance Corporation (IRFC), Jio Financial Services, Power Finance Corporation and REC will replace Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care and Shriram Finance in the Nifty Next 50 index.

Powered by Capital Market - Live News

UPL announced the incorporation of a new step down subsidiary - Advanta Seeds Tanzania effective 10 February 2024. Advanta Seeds Tanzania Limited would be a step down subsidiary at Advanta Seed structure under Advanta Enterprises, India in which the Company holds 86.67% shareholding. It becomes a related party upon incorporation

Powered by Capital Market - Live News

UPL has received revision in credit ratings from S&P Global Ratings as under:

Issuer Credit Rating - BB (revised from BB+)
Senior Unsecured Notes - BB (revised from BB+)
Subordinated Securities - B+ (revised from BB-)

S&P has revised their rating outlook from 'Stable' to 'Negative'.

Powered by Capital Market - Live News

Net loss of UPL reported to Rs 1217.00 crore in the quarter ended December 2023 as against net profit of Rs 1087.00 crore during the previous quarter ended December 2022. Sales declined 27.72% to Rs 9887.00 crore in the quarter ended December 2023 as against Rs 13679.00 crore during the previous quarter ended December 2022.

Powered by Capital Market - Live News

One 97 Communications Ltd, Tilaknagar Industries Ltd, Bank of India and GHCL Ltd are among the other losers in the BSE's 'A' group today, 05 February 2024.

UPL Ltd lost 10.40% to Rs 478 at 14:47 IST.The stock was the biggest loser in the BSE's 'A' group.On the BSE, 5.79 lakh shares were traded on the counter so far as against the average daily volumes of 1.36 lakh shares in the past one month.

One 97 Communications Ltd tumbled 10.00% to Rs 438.35. The stock was the second biggest loser in 'A' group.On the BSE, 11.24 lakh shares were traded on the counter so far as against the average daily volumes of 5.3 lakh shares in the past one month.

Tilaknagar Industries Ltd crashed 8.09% to Rs 231.1. The stock was the third biggest loser in 'A' group.On the BSE, 4.19 lakh shares were traded on the counter so far as against the average daily volumes of 77568 shares in the past one month.

Bank of India pared 8.05% to Rs 139.4. The stock was the fourth biggest loser in 'A' group.On the BSE, 49.99 lakh shares were traded on the counter so far as against the average daily volumes of 22.69 lakh shares in the past one month.

GHCL Ltd fell 7.65% to Rs 535.15. The stock was the fifth biggest loser in 'A' group.On the BSE, 42471 shares were traded on the counter so far as against the average daily volumes of 16339 shares in the past one month.

Powered by Capital Market - Live News

Revenue from operations declined 27.72% YoY to Rs 9,887 crore in the quarter ended 31 December 2023.

Revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

Loss before exceptional items and tax was at Rs 1,649 crore as against profit before exceptional items of Rs 1,515 crore reported in the same quarter a year ago.

Exceptional items stood at Rs 17 crore in Q3 FY24, mainly includes cost related to losses due to fire, restructuring in Europe, litigation and severance related expenses.

EBITDA slumped 86% to Rs 416 crore in the December quarter from Rs 3,035 crore reported in Q3 FY23. EBITDA margin dropped to 4.2% in Q3 FY24 as compared to 22.2% recorded in the corresponding quarter previous year.

UPL said that the revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

During the quarter, contribution profit jumped 54% YoY to Rs 2,689 crore and contribution margin declined to 42.6% from 42.6% in Q3 FY23. Liquidation of high-cost inventory, and higher rebates to support channel partners, impacted contribution margin, it added.

The company’s revenue from crop protection was at Rs 8,495 crore (down 30.68% YoY) and non agro came in at Rs 520 crore (down 9.25% YoY). However, income from seeds business was at Rs 931 crore (up 2.08% YoY)

UPL's income from North American tumbled 64% YoY, revenue from Europe declined by 30% YoY, followed by Latin America (down 28% YoY) and India (down 20% YoY) and rest of the world shed by 12% YoY during the period under review.

Net debt stood at Rs $3,767 million during the quarter. Despite lower payables (down by $568 million), net debt is largely in-line with December 2022 adjusted for reduced factoring.

Mike Frank, CEO, UPL Corporation, said, “Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly as against with the high base of previous year amid intense postpatent price competition.

However, we did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW region. Our high margin differentiated and sustainable portfolio continued to outperform as revenue 2 share of this portfolio increased to 37% of crop protection revenue (ex-India) vs 28% last year. Contribution margins too were down only marginally versus last year adjusted for the short-term impact of high-cost inventory liquidation and higher rebates to channel partners.

We continued to implement cost optimization initiatives to align our operations with the new reality, reducing SG&A expenses by 19% YoY in Q3. We are well on track to reduce our SG&A by $100 million in FY25 (from the base of FY23). Going forward, while we are optimistic of a progressively improved performance in Q4FY24 and Q1FY25, we expect normalized business performance from Q2FY25. Our foremost priority is reducing debt. In-line with this, we have also recently announced a rights issue of upto $500 million and are exploring capital raise opportunities at platforms in addition to operational cash flows.”

UPL is principally engaged in the agro business of production and sale of agrochemicals, field crops, vegetable seeds and non agro business of production and sale of industrial chemicals, chemical intermediates, speciality chemicals.

Powered by Capital Market - Live News

Revenue from operations declined 27.72% YoY to Rs 9,887 crore in the quarter ended 31 December 2023.

Revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

Loss before exceptional items and tax was at Rs 1,649 crore as against profit before exceptional items of Rs 1,515 crore reported in the same quarter a year ago.

Exceptional items stood at Rs 17 crore in Q3 FY24, mainly includes cost related to losses due to fire, restructuring in Europe, litigation and severance related expenses.

EBITDA slumped 86% to Rs 416 crore in the December quarter from Rs 3,035 crore reported in Q3 FY23. EBITDA margin dropped to 4.2% in Q3 FY24 as compared to 22.2% recorded in the corresponding quarter previous year.

UPL said that the revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

During the quarter, contribution profit jumped 54% YoY to Rs 2,689 crore and contribution margin declined to 42.6% from 42.6% in Q3 FY23. Liquidation of high-cost inventory, and higher rebates to support channel partners, impacted contribution margin, it added.

The company’s revenue from crop protection was at Rs 8,495 crore (down 30.68% YoY) and non agro came in at Rs 520 crore (down 9.25% YoY). However, income from seeds business was at Rs 931 crore (up 2.08% YoY)

UPL's income from North American tumbled 64% YoY, revenue from Europe declined by 30% YoY, followed by Latin America (down 28% YoY) and India (down 20% YoY) and rest of the world shed by 12% YoY during the period under review.

Net debt stood at Rs $3,767 million during the quarter. Despite lower payables (down by $568 million), net debt is largely in-line with December 2022 adjusted for reduced factoring.

Mike Frank, CEO, UPL Corporation, said, “Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly as against with the high base of previous year amid intense postpatent price competition.

However, we did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW region. Our high margin differentiated and sustainable portfolio continued to outperform as revenue 2 share of this portfolio increased to 37% of crop protection revenue (ex-India) vs 28% last year. Contribution margins too were down only marginally versus last year adjusted for the short-term impact of high-cost inventory liquidation and higher rebates to channel partners.

We continued to implement cost optimization initiatives to align our operations with the new reality, reducing SG&A expenses by 19% YoY in Q3. We are well on track to reduce our SG&A by $100 million in FY25 (from the base of FY23). Going forward, while we are optimistic of a progressively improved performance in Q4FY24 and Q1FY25, we expect normalized business performance from Q2FY25. Our foremost priority is reducing debt. In-line with this, we have also recently announced a rights issue of upto $500 million and are exploring capital raise opportunities at platforms in addition to operational cash flows.”

UPL is principally engaged in the agro business of production and sale of agrochemicals, field crops, vegetable seeds and non agro business of production and sale of industrial chemicals, chemical intermediates, speciality chemicals.

The scrip rose 0.68% to settle at Rs 533.50 on Friday, 2 January 2024.

Powered by Capital Market - Live News

UPL will hold a meeting of the Board of Directors of the Company on 2 February 2024.

Powered by Capital Market - Live News