UPL, the agrochemical player, faced a 4% decline in its shares following the announcement of second-quarter results, revealing a stark 86% drop in EBITDA and a 28% YoY decrease in revenue.
The company’s challenging performance, marked by weak demand, inventory destocking, and declining prices, resulted in a second consecutive quarterly loss for the April-December period. The disappointing results not only raised concerns among brokerages about UPL’s growth outlook but also prompted further downgrades for the stock.
UPL reported a net loss of Rs 1,217 crore, surpassing the Street’s estimate of Rs 527.80 crore. This downturn contrasts sharply with the Rs 1,326 crore net profit posted in the year-ago period.
The revenue slump was significant, with a nearly 28% decrease to Rs 9,887 crore, down from Rs 13,679 crore in the corresponding period last year. The challenging market conditions have underscored the need for strategic adjustments by UPL to navigate the agrochemical landscape.