Main Media English

Get Latest News, India News, World News at Main Media English

Support Us

UPL shares hit 52 week low after 9% slump

IANS logo Reported By IANS |
Published On :

New Delhi, Feb 5 (IANS) UPL was among the top Nifty losers as the shares slumped more than 9 per cent on Monday after its operating performance missed expectations.

UPL shares were trading at Rs 482.85 down 9.8 per cent. The lower circuit is at 10 per cent. UPL shares hit a 52 week low on Monday. The company has a market capitalisation of Rs 36,735.31 crore.

Also Read Story

Empty chairs, forced attendance allegations cast shadow on INDIA bloc’s Delhi rally

Nagaland’s sole LS seat to witness triangular contest in 2024 polls

Odisha Crime Branch busts racket involved in Rs 1.04 cr fraud

IPL 2024: Under-pressure Mumbai Indians hope to shine in home comfort (Preview)

IPL 2024: Sai Sudharsan, David Miller star as clinical Gujarat beat Hyderabad by seven wickets

Viksit Bharat Ambassador meet-up: India is world’s 3rd largest start-up ecosystem today, says I&B Minister Anurag Thakur

Amit Shah chairs meeting of Lok Sabha core committees in Jaipur, holds roadshow in Sikar

IPL 2024: Ishant Sharma back as Delhi Capitals win toss, elect to bat against CSK

Viksit Bharat Ambassador Jaipur meet-up: Participants heap praise on the initiative

Motilal Oswal Financial Services said in a report that UPL reported another weak quarter, with a 28 per cent YoY decline in revenue. It was primarily attributed to a continued downtrend in agrochemical prices (down 24 per cent YoY), leading to continued destocking of inventory by distributors (volumes down 5 per cent YoY). All regions (except RoW) witnessed a sales decline of at least 20 per cent (India) to as high as 64 per cent (North America). RoW sales grew 12 per cent YoY.


Gross debt (excluding perpetual bonds) increased to Rs 361.7b as of Dec’23 from Rs 328b as of Dec’22. Net debt (excluding perpetual bonds) increased to Rs 313.5b as of Dec’23 from Rs 275.3b as of Dec’22. Factoring in UPLL’s subdued performance in 3QFY24, we cut our FY25E/FY26E EPS by 23 per cent/11 per cent, the report said.

“We see near-term challenges in the global agrochemical industry due to: a) the accumulation of high inventory as distributors opt for need-based tactical purchases, and b) declining agrochemical prices led by aggressive price competition from Chinese (post-patent) exporters. Considering the short-term challenges, cash flow generation and debt repayments remain the key monitorables,” the report said.

UPLL expects 4QFY24 to be weaker YoY; however, it expects margin improvement QoQ. The management expects normalized business performance in 2QFY25.

The management expects the price challenge to continue in the near term. UPLL is witnessing a pick-up in volumes in Latin America and double-digit growth in revenue in the RoW region, the report said.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)

–IANS

san/dan

(This report is auto-generated from IANS news service. 'Main Media' holds no responsibility for its content.)

Get involved in bringing the ground realities of Seemanchal. Click the "Support Us" button to join our membership.

Support Us

Related News

Pawar vs Pawar: A fight for supremacy in Baramati

Rebel Wilson opens up on weight loss journey, says she’s an emotional eater

Shraddha Kapoor asks fans how they wasted 1st quarter of 2024

PM Modi virtually interacts with party workers in Varanasi

AIADMK will ally again with BJP after LS elections, says Chidambaram

PE-VC investments fall by 8 per cent to $6.2 billion in Q1

Cut! Mark Ronson’s role in Amy Winehouse biopic gets axed

Leave a Reply

Your email address will not be published. Required fields are marked *