UPL's Q4 Profit Drops 42% Amid Surging Costs in Indian Agri Chemicals Industry

UPL Ltd, an Indian producer of agricultural chemicals, announced a 42.6% decline in Q4 profits due to increasing raw material expenses. The company's consolidated net profit dropped from 13.79 billion rupees in the prior year to 7.92 billion rupees for the three months ended March 31.

The company based in Mumbai earned 165.69 billion rupees from operations, with Latin America contributing to 39% of the revenue, followed by North America at 18.16%. This marks a 4.5% increase in revenue.

Despite an increase of 7.5% in revenue, the total expenses rose by 11.2% to 154.80 billion rupees, where the cost of materials comprised almost two-thirds of it, amounting to 98.21 billion rupees.

UPL reported that the quarter was affected by a quick drop in product prices and delays in the planting season. “Decline in post-patent product prices with the ramp-up of supply from China, idle capacity costs... also impacted the quarter,” the company stated.

As of March 31, 2023, the net debt of the company was $2.06 billion, slightly higher than the expected $2 billion.

The company had previously disclosed an investment of $200 million in UPL Sustainable Agri Solutions Ltd to reduce its debt.

About UPL

UPL Ltd, formerly known as United Phosphorus Ltd, is a chemical company based in Mumbai, India. They specialize in developing and producing agricultural protection products such as seeds, agrochemicals, and plant growth regulators. Additionally, they offer industrial and specialty chemicals like caustic chlorine and white phosphorus. The company also provides farmer advisory services and operates through manufacturing units and offices worldwide.

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