Q3 Results: UPL’s Profit Misses Estimates Due To Exceptional Loss
UPL Ltd.’s profit in the December-ended period fell and missed estimates after incurring an exceptional loss.
Net profit of the Mumbai-based chemical maker fell nearly 20 percent year-on-year to Rs 461 crore for the quarter, according its exchange filing. That compares with the Rs 594.5-crore consensus estimate of analysts tracked by Bloomberg. The company incurred an exceptional loss of Rs 91 crore in the quarter.
Revenue rose 17.3 percent to Rs 4,921 crore in the same period, in line with the Bloomberg estimate of Rs 4,714 crore. Earnings before interest, tax, depreciation and amortisation rose 22.6 percent to Rs 1,016 crore on a yearly basis. Operating margin expanded 80 basis points to 20.6 percent during the same period.
Debt to be raised to acquire the agri-pesticides maker Arysta LifeScience Inc. for $4.2 billion will result in moderation of key credit metrics such as interest cover and Ebitda until fiscal 2020, according to a Crisil report released prior to the earnings announcement.
The company’s ability to take on further material bolt-on large acquisitions over the medium term may require raising of equity, the report said.
UPL’s shares closed 2.5 percent higher at Rs 786.50 apiece ahead of the earnings announcement.