Crop Protection

UPL announces financial results for Q2; India Region grew by 22 percent

02 November 2022, Mumbai: UPL Ltd., yesterday reported financial results for the second quarter of FY23 (July-Sep 2022).

Financial Performance Update

INR crore(Unless otherwise stated)Q2 FY23Q2 FY22YoY
EBITDA Margin (%)22.1%19.4%278 bps
Net Profit81363328%
Financial Performance Update

The company has reported Q2FY23 with 18% YoY groth in sales to reach INR 12,506 crore, led primarily by higher realizations (+21%) and a favorable exchange rate (+4%) offset by decline in volumes (-7%).

Regional Performance Update

Region (INR crore)Q2 FY23Q2 FY22YoY % Chg.H1 FY23H1 FY22YoY % Chg.
Latin America6,0925,08720%9,5577,59526%
North America1,18595824%2,9812,18037%
Rest of the World2,0671,70221%3,8323,05226%
Regional Performance Update

Q2 FY23 EBITDA grew by 35% YoY to INR 2,768 crore. Improved realizations, better product mix along with efficient supply chain management drove EBITDA margins improvement by 278 bps despite the significant external pressures.

Commenting on the performance, Mr. Jai Shroff, CEO, UPL Ltd., said “We continued to see robust growth momentum in Q2 FY23 with 18% YoY. Our focus on quality growth with a better product mix and proactive pricing actions drove a strong 35% YoY growth in EBITDA, with EBITDA margins expanding by ~278 bps. As a group, our top priority is creating value for shareholders. In line with this, we recently announced a strategic corporate realignment initiative, creating distinct pure-play platforms to accelerate growth and unlock value for shareholders. We have brought on-board marquee investors such as ADIA, Brookfield, KKR and TPG, who have collectively invested around INR 4,000 crore (or US$ 500 Mn) for minority stakes in our India Agtech and Global Seeds Business Platforms

Going forward the company is confident of meeting its FY23 guidance of revenue growth of 12-15%, EBITDA growth of 15- 18% and reducing net debt by US$ 650 Mn”.

Changes in Directorship

Mr. Rajju Shroff, current Chairman and Managing Director, takes the role of “Chairman Emeritus” and Mr. Jai Shroff, Global CEO, will now assume the role of the Chairman of the Board w.e.f. 1st December 2022.

Mr. Pradeep Goyal and Dr. Reena Ramachandran have conveyed their decision to step-down as independent directors w.e.f. 1st December 2022.

The Company has recently inducted Mr. Suresh Kumar as an Independent Director w.e.f. 20th October 2022. Furthermore, the Board also agreed in principle to induct one more independent director in due course which will enhance independence of the Board.

Mr. Arun Ashar, Whole-time Director, retires after a long and distinguished service of over 50 years as a key member of the UPL journey. Due to his advancing age, he will step down as Executive Director w.e.f. 1st December 2022.

Based on the recommendation of Nomination and Remuneration Committee, the Board has inducted two new members w.e.f. 1st November 2022. Mr. Raj Tiwari, Chief Supply Chain Officer will join the board as an Additional Director as well as Whole-Time Director; and Mr. Carlos Pellicer, former Global COO of UPL Ltd, as a Non-Executive, Non-Independent Director.

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