Quarterly Result Update

UPL LIMITED
August 02, 2023

Financials Results
In Cr.
Particulars Qtr Ending Qtr Ending Var.
Jun. 23 Jun. 22 (%)
Current Price: ` 625.85
Net Sales 8,963.00 10,821.00 -17
OPM (%) 14.20 19.80 -560bps
OP 1,273.00 2,146.00 -41
Other Inc. 101.00 73.00 38
STOCK DATA PBIDT 1,374.00 2,219.00 -38
Interest 700.00 519.00 35
BSE Code 512070
PBDT 674.00 1,700.00 -60
NSE Symbol UPL
Depreciation 636.00 588.00 8
Reuters UPLL.BO
PBT 38.00 1,112.00 -97
Bloomberg UPLL IN
Share of Profit/(Loss) from Associates -57.00 30.00 PL
PBT before EO -19.00 1,142.00 PL
EO Income -43.00 -78.00 45
VALUE PARAMETERS PBT after EO -62.00 1,064.00 PL
Taxation -164.00 59.00 LP
52 W H/L(Rs) 807.00/610.95 PAT 102.00 1,005.00 -90
Mkt. Cap.(Rs Cr) 46976.78 Minority Interest (MI) -64.00 128.00 LP
Latest Equity(Subscribed) 150.12 Net profit 166.00 877.00 -81

Latest Reserve (cons.) 29694.00 EPS (Rs) 0.55 12.53

Latest EPS (cons.) -Unit Curr. 37.24

UPL Q1FY24 results: Revenue and EBITDA for Q1 impacted by the industry-wide
Latest P/E Ratio -cons 16.81
slow down, below estimates
Latest Bookvalue (cons.) -Unit Curr. 397.6
UPL consolidated net sales declined 17.17% to Rs 8963 crore in Q1FY24 compared to Q1FY23.
Latest P/BV - cons 1.57 Sales of Non Agro segment has gone down 18.83% to Rs 625.00 crore (accounting for 6.90% of
Dividend Yield -% 1.60 total sales). Sales of crop protection segment has gone down 21% to Rs 7346 crore (accounting

Face Value 2.00 for 81% of total sales). Sales of seed segment was up 30% to Rs 1091 crore (accounting for
12% of total sales).Inter-segment sales came down from Rs 118.00 crore to Rs 108.00 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 51.18% to Rs 931.00
crore. PBIT of Non Agro segment fell 20.18% to Rs 87.00 crore (accounting for 9.34% of total
SHARE HOLDING PATTERN (%) PBIT). PBIT of crop protection segment fell 68% to Rs 510 crore (accounting for 55% of total
PBIT). PBIT of seed segment rose 74% to Rs 334 crore (accounting for 36% of total PBIT).
Description as on % of Holding
30/06/2023 PBIT margin of Non Agro segment fell from 14.16% to 13.92%. PBIT margin of crop protection
Foreign 38.82 segment fell from 17.2% to 6.9%. PBIT margin of seed segment rose from 22.8% to 30.6%.
Overall PBIT margin fell from 17.43% to 10.27%.
Institutions 19.27
Non Promoter Corp. Hold. 1.08 Operating profit margin has declined from 19.83% to 14.20%, leading to 40.68% decline in

Promoters 32.35 operating profit to Rs 1,273.00 crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 45.46% to 43.85%. Employee cost increased from 11.50% to
Public & Others 8.50
13.83%. Other expenses rose from 23.21% to 28.12%. Provisions writeoffs cost rose from
0.30% to 0.70%. Other provisions rose from 0.30% to 0.70%.

Other income rose 38.36% to Rs 101 crore. PBIDT fell 38.08% to Rs 1374 crore. Provision for
interest rose 34.87% to Rs 700 crore. PBDT fell 60.35% to Rs 674 crore. Provision for
depreciation rose 8.16% to Rs 636 crore. Profit before tax down 96.58% to Rs 38.00 crore.

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Share of associates reported loss of Rs 57 crore compared to profit of Rs 30 crore. PBT before
EO was loss of Rs 19 crore compared to profit of Rs 1142 crore. The company reported EO
expense of Rs 43 crore compared to Rs 78 crore. PBT after EO was loss of Rs 62 crore compared
to profit of Rs 1064 crore. EO expense mainly include cost related to losses due to fire,
restructuring in Europe, litigation and severance related expenses. Provision for tax was credit
of Rs 164 crore, compared to debit of Rs 59 crore. Net profit attributable to owners of the
company decreased 81.07% to Rs 166.00 crore.

Revenue and EBITDA for Q1 impacted by the industry-wide slow down. Net Debt stood lower by
$160 million vs LY at $3,193 million as of 30 June 2023 despite lower factoring ($890 million on
30 June 2023 vs 1,140 million on 30 June 2022). Adjusted for the lower factoring quantum, net
debt would have stood at $2,943 million (lower by $410 million YoY)

Management Comment
Commenting on the performance, Mr. Mike Frank, CEO – UPL Corporation Ltd., said
“The global agrochemical industry has been going through a challenging phase over the last
two quarters as distributors prioritized destocking and focused on tactical purchases amid high
channel inventories.Additionally, the market is witnessing pricing pressure given the high base
of previous year and aggressive price competition we have seen from the Chinese post patent
exporters.

Given this backdrop, our revenue and profitability were also impacted by these headwinds in
line with the rest of the industry. Having said that our differentiated and sustainable portfolio
performed resiliently (+7% YoY); with revenue share increasing significantly to 37% versus
27% last year. Favorable portfolio and regional mix coupled with better margins at Advanta
helped improve contribution margins by around 198 bps YoY in Q1.

One of our key focus areas has been to improve cash flows and strengthen our balance sheet.
In-line with this, we have reduced our net debt by ~$160 million versus June 2022 despite much
lower factoring (down by ~$250 million YoY).

Further, we are undertaking a cost reduction initiative of $100 million over the period of next 24
months; 50% of which we expect to be realized in FY24. Going forward, while we anticipate
demand to remain subdued in Q2 FY24 as well, our performance should be sequentially better.
We are optimistic of demand recovery in H2 FY24 as the channel inventory approaches a new
normalized level. Overall, led by improved demand and cost optimization efforts, we expect our
Revenue and EBITDA growth to turn positive in H2 FY24, with full year Revenue growth to now
be in the range of 1-5% with EBITDA growth at 3-7%.”

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