Workers sprays weed killer on plants at a soya bean farm in Dewas, Madhya Pradesh (Photographer: Prashanth Vishwanathan/Bloomberg)

Q2 Results: UPL’s Profit Misses Estimates On One-Time Loss

UPL Ltd.’s profit missed estimates in the second quarter as the chemical maker incurred a one-time loss.

Net profit rose 13.9 percent year-on-year to Rs 270 crore, according to its exchange filing. That’s lower than the Rs 386-crore estimate of analysts tracked by Bloomberg. The company incurred an exceptional loss worth Rs 57 crore during the quarter. The bottom line was also dented by a higher tax rate. Moreover, a weaker rupee led to a foreign exchange loss of Rs 52 crore in the quarter.

Other Highlights

  • Revenue rose 13 percent to Rs 4,257 crore, higher than the Rs 4,140-crore estimate.
  • Ebitda rose 16.7 percent year-on-year to Rs 839 crore.
  • Ebitda margin stood at 19.7 percent, expanding 60 basis points year-on-year.

UPL’s shares moved between gains and losses after the earnings announcement. The stock has fallen 21.3 percent in 2018 so far compared with a 0.3 percent decline in the benchmark S&P BSE Sensex.