UPL Reports 76% Drop in YoY Net Profit Growth for Q2 FY20-21

UPL Limited., an agrochemicals manufacturer based in India announced its results for the second quarter ended September 30, 2020.

Q2 Results- QoQ

The company’s net profit declined 30% to Rs 104 crores for the period ended September 30, 2020 as against net profit of Rs 149 crores for the previous quarter.

Net sales grew 19% to Rs 3162 crores during the period ended September 30, 2020 as compared to Rs 2651 crores during the previous quarter.

Q2 Results- YoY

The company’s net profit declined 76% to Rs 104 crores for the period ended September 30, 2020 as against net profit of Rs 429 crores for the prior-year quarter.

Net sales increased 14% to Rs 3162 crores during the period ended September 30, 2020 as compared to Rs 2771 crores during the prior-year quarter.

Half-Year Results- YoY

The company’s net profit dropped 43% to Rs 253 crores for the 6 months period ended September 30, 2020 as against net profit of Rs 442 crores for the prior-year 6 months period.

Net sales grew 14% to Rs 5,813 crores during the 6 months period ended September 30, 2020 as compared to Rs 5,108 crores during the prior-year 6 months period.

On the impact of the pandemic on its business, UPL Ltd in its stock exchange filing said, “As of today, all production facilities in various parts of the country remains in operation, following enhanced internal safety guidelines. The Company follows a multi-sourcing strategy for active ingredients and raw materials allowing the Company to hedge supply risks and ensure reliable supply. The Company also maintains strategic safety stocks to ensure availability of raw materials and formulated products.”

“During this period, the Company continued sales of their products and does not expect any material adverse impact at this point of time. Considering the liquidity position as at 30th September 2020 and expectation of cash generation from operations, the Company believes that it has ability to service debt and other financing arrangements during the current financial year.”