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UPL share hits 52-week high on strong Q4 earnings

The stock has gained 90 per cent in one year and risen 59.39 per cent since the beginning of this year

twitter-logoBusinessToday.In | May 14, 2021 | Updated 17:34 IST
The stock has gained 90 per cent in one year and risen 59.39 per cent since the beginning of this year.
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UPL share rose over 10 per cent to hit a fresh 52-week high of Rs 764.45 on BSE today after the company reported a 73.5 per cent rise in its consolidated net profit in Q4. The company reported a consolidated net profit of Rs 1,361 crore in Q4 compared with a net profit of Rs 784 crore in Q4 FY20.

The stock ended 7.51 per cent higher at Rs 743.55 against the previous close of Rs 691.60 . The stock has gained 90 per cent in one year and risen 59.39 per cent since the beginning of this year. UPL's share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 56,810.60 crore.

Revenue from operations rose 14.8 per cent to Rs 12,796 crore in the last quarter against Rs 11,141 crore a year ago, backed by robust volume growth of 18 per cent.

The global provider of sustainable agriculture products and solutions informed that strong volume growth in Latin America was helped by the catch-up of a delayed season in Brazil. North America was impacted by supply constraints. However, Europe and India continued to maintain strong volume growth.

"2020 was certainly a challenging year for each one of us, and the world as a whole. Despite being an incredibly tough year, UPL delivered growth through continuously innovating and transforming, and adapting to the constantly changing situation as best it can. Our financial performance in FY2021 has demonstrated the resilience of our model in COVID times. Despite the situation, we have delivered on our stated commitments of Revenue and EBITDA," said Mr. Jai Shroff, CEO, UPL Ltd.

"During the year, the company continued to deliver on its commitment to deleverage the company's balance sheet and reduced the Gross Debt by 5,039 cr. and Net Debt by Rs 3,140 cr. The Gross Debt and Net Debt as of March 31, 2021, was Rs 23,774 crore and Rs 18,922 cr., respectively," he added.

According to Kotak Institutional Equities, Q4 earnings were above estimate, led by higher revenue growth and gross margin. The company's focus on innovation and in-licensing agreement should drive revenue growth and margin.

The brokerage house has raised FY22/23 EBITDA estimates by 10%/15%.

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