UPL hits new low

UPL is among the top five losers on the BSE; from its close of Rs.533.50, it opened much weaker today at Rs.507 and went down further to hit a new 52-week low at Rs.498.40 and is now currently trading at Rs.501 levels.

The market is very disappointed with UPLs Q3FY24 numbers. On a 28% (YoY) dip in revenue from operations at Rs.9887 crore, the company posted a big net loss of Rs.1217 crore v/s Rs.1087 crore net profit (YoY).

EBITDA was down 86% at Rs.416 crore while margins dipped from 21.2% to 4.21%.

The company said that Q3 performance was significantly impacted by global headwinds in line with the rest of the industry, which is currently experiencing its worst downturn in decades. Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly vis-à-vis the high base of the previous year amid intense post-patent price competition.