UPL Ltd, a leading agrichemicals company, posted a net loss of Rs 384 crore for the first quarter of FY25, a significant downturn from a net profit of Rs 166 crore in the same period last year. This disappointing performance was largely driven by decreased product prices, falling short of market expectations.
Key Financial Highlights
- Net Loss: Rs 384 crore for Q1 FY25
- Net Profit (Q1 FY24): Rs 166 crore
- Revenue: Rs 9,067 crore, up 1.2% year-on-year
- EBITDA: Rs 1,145 crore, a 28% decline from the previous year
- Product Price Decline: 14%
Performance Overview
- Revenue Growth: The company’s revenue for the April-June quarter increased due to a 16% rise in volumes.
- Price Impact: A 14% drop in product prices and a 1% negative foreign exchange impact affected profitability.
- EBITDA Drop: EBITDA decreased significantly, reflecting the adverse impact of lower product prices.
Key Financial Highlights
| Metric | Q1 FY25 | Q1 FY24 | Change |
|---|---|---|---|
| Net Loss | Rs 384 crore | Rs 166 crore | -Rs 550 crore |
| Revenue | Rs 9,067 crore | – | +1.2% |
| EBITDA | Rs 1,145 crore | – | -28% |
| Product Price Decline | – | – | -14% |
Future Outlook
UPL Ltd is focusing on improving margins and cash flow. The company plans to benefit from these improvements in the latter half of FY25 through:
- Cash Generation: Emphasis on optimizing inventories and working capital.
- Business Restructuring: Implementation of strict credit policies and tighter credit terms in its India Crop Protection business.
CEO’s Statement
Ashish Dobhal, CEO of UPL SAS, acknowledged the challenges faced during Q1 FY25 but expressed confidence in the company’s strategic moves. He highlighted the improved contribution margins, cash flows, and reduced working capital as positive signs for future performance.
