Motilal Oswal: UPL Reports Subdued Q1 Sales; Debt Remains A Concern

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.UPL Ltd. reported revenue decline of 1% YoY to Rs 78.3 billion (estimate Rs 86.4 billion) in Q1 FY21 (price: -1%; volume and exchange impact stood flat YoY).Gross margins improved 20 basis point YoY to 43% on improvement in the product mix and geography mix. Ebitda margins expanded 170 basis point YoY to 22.7%, and Ebitda grew at 7% YoY to Rs 17.8 billion (estimate 18.5 billion).Adjusted profit after tax was up 10% YoY to Rs 6.5 billion (estimate Rs 6.9 billion), aided by Ebitda growth and higher other income, offset by higher depreciation and interest cost. Note that we have excluded the contribution made toward the PM CARES Fund for Covid-19 (of Rs 750 million) from Ebitda and reported it under exceptional items.In Q1 FY21, UPL reported strong revenue growth of 27% YoY in India versus 15% industry growth. Europe edged up 1% YoY due to supply chain delays, which resulted in a shift in revenues to Q2.Robust business growth in Southeast Asia owing to rains and synergies led to 10% YoY growth in rest of world.Revenue from the Latin America region declined 16% YoY on forex volatility in Brazil, which led to the postponement of orders to later quarters.Revenue from North America declined 14% YoY on pre-buying due to Covid-19 in Q4 FY20..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: UPL Reports Subdued Q1 Sales; Debt Remains A Concern

Motilal Oswal: UPL Reports Subdued Q1 Sales; Debt Remains A Concern

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