UPL Q4 result: Firm reports 41% decline in net profit, misses estimate

UPL Ltd Q4 result: UPL Ltd on Monday, May 8, 2023, announced its fourth-quarter results. The company registered a decline of 41.8 per cent in its consolidated net profit year-on-year (YoY) to Rs 792 crore for the January-March quarter. It reported a profit of Rs 1,360 crore in the corresponding quarter last year. According to the company the quarter was impacted by a rapid decline in product prices and delays in the planting season that resulted in headwinds for product placements.

As per estimates, the results were weak, the consolidated profit was estimated at Rs 1,940 crore. Meanwhile, the revenue increased 4 per cent (YoY) to Rs 16,569 crore from Rs 15,860 (YoY), but was lower than the estimated revenue of Rs 16,840 crore.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 3,033 crore as compared to Rs 3,591 crore (YoY). The company's margin — a key measure of profitability for a business also declined by 430 basis points to 18.3 per cent from 22.6 per cent a year ago.

"EBITDA margins were lower mainly due to weaker-than-expected performance in Q4 impacted by headwinds in the post-patent space, which offset the healthy performance delivered during the first nine months," UPL said in the filing.

Income from other sources increased 82 per cent to Rs 2,11 crore (YoY).

UPL dividend

The company has declared a dividend of Rs 10 per equity share on equity shares of face value of Rs 2 each i.e., a 500 per cent payout to its shareholders.

"We would like to further inform you that the Board has recommended dividend of 500% i.e. Rs. 10/- per equity share on equity shares of Rs.2/- each, subject to approval of members at the
ensuing Annual General Meeting. The dividend will be paid/dispatched within 30 days of the Annual General Meeting," the company's filing said.

Also Read: UPL dividend: Board announces 500% payout zeebiz.com/markets/stocks/news-upl-dividend-2023-record-q4-results-date-share-price-nse-bse-233826

UPL share price history

UPL shares traded nearly 1 per cent higher in the afternoon trade at Rs 720.5 apiece on BSE and the scrip quoted Rs 720.7 apiece on NSE.

On a year-to-date (YTD) basis, the shares of DLF have declined over 0.13 per cent as compared to Nifty50’s rise of 0.44 per cent. In the past six months, the stock declined over 4 per cent, as compared to the headline index’s rise of 0.66 per cent.

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