UPL Reports Q3 Net Loss of Rs 1,217 Cr

Mumbai, Feb 2 (PTI) Sustainable agriculture products and solutions provider UPL on Friday reported a consolidated loss of Rs 1,217 crore during the December 2023 quarter.

The company's net profit stood at Rs 1,087 crores during the corresponding quarter of the previous financial year, the company said in a regulatory filing.

Its revenue from operations declined 27.72 per cent to Rs 9,887 crore in the quarter under review from Rs 13,679 crore a year ago.

"Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable quarter-on-quarter in the crop protection business but came off significantly compared to the high base of the previous year amid intense post-patent price competition.

"Given this backdrop, our third quarter performance was significantly impacted by these headwinds in line with the rest of the industry, which is currently experiencing its worst downturn in decades," UPL Corporation CEO Mike Frank said.

However, the company did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW (rest of the world) region, he added.

The company continued to implement cost optimisation initiatives to align its operations with the new reality, reducing SG&A (selling, general and administrative) expenses by 19 per cent year-on-year in the third quarter.

"We are well on track to reduce our SG&A by USD 100 million in FY25 (from the base of FY23). Going forward, while we are optimistic about a progressively improved performance in the fourth quarter of FY24 and the first quarter of FY25, we expect normalised business performance from the second quarter of FY25. Our foremost priority is reducing debt," he stated.

In line with this, the company has also recently announced a rights issue of up to USD 500 million and is exploring capital raise opportunities at platforms in addition to operational cash flows, he added.

Shares of the company on Friday closed at Rs 533.50 apiece, up 0.68 per cent on BSE.