UPL Q1 profit rises 6% to Rs 514 cr, higher finance cost restricts growth

Agrochemical company UPL’s first quarter profit increased 5.5 percent year-on-year to Rs 514 crore driven by growth across parameters, but higher finance cost hit bottomline.

Profit for the quarter ended June 2017 stood at Rs 487 crore.

Revenue from operations grew by 11 percent to Rs 4,134 crore compared to Rs 3,723 crore in same period last year.

India business growth stood at 12 percent, Latin America 17 percent, North America 8 percent, Europe 11 percent and Rest Of World at 6 percent while total volume growth for the quarter was at 8 percent.

EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 12.9 percent year-on-year to Rs 847 crore and margin expanded 25 basis points to 20.4 percent.

Finance cost during the quarter increased 119 percent to Rs 175 crore and other expenses rose 9 percent to Rs 994 crore compared to year-ago.

Meanwhile, the company, on July 20, signed a definitive agreement with Platform Specialty Products Corporation to acquire Arysta LifeScience Inc through its subsidiary UPL Corporation. The acquisition cost would be $4.2 billion in cash consideration.

At 14:17 hours IST, the stock price was quoting at Rs 648.95, up Rs 7.25, or 1.13 percent on the BSE.