UPL Ltd

The brokerage revised its rating on the stock from sell to buy, while increasing its price target from Rs 450 to Rs 700. The positive outlook is fueled by expectations of successful debt reduction by UPL in the fiscal year 2025. As of September 2024, UPL's net debt stood at Rs 27,531 crore. Further, the brokerage believes UPL will meet its current guidance, citing anticipated recovery in global macro demand and the company's focus on operational efficiency as key supporting factors. UPL is principally engaged in the agrobusiness of production and sale of agrochemicals, field crops, and vegetable seeds, and the non-agrobusiness of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals. UPL reported consolidated net profit of Rs 828 crore in Q3 FY25, compared with net loss of Rs 1,217 crore in Q3 FY24. Revenue from operations rose 10% YoY to Rs 10,907 crore in the quarter ended 31 December 2024, driven by a 9% increase in volumes, a 5% increase in price, and a 4% decline due to FX, mainly in Brazil. Powered by Capital Market - Live

Net profit of UPL reported to Rs 828.00 crore in the quarter ended December 2024 as against net loss of Rs 1217.00 crore during the previous quarter ended December 2023. Sales rose 10.32% to Rs 10907.00 crore in the quarter ended December 2024 as against Rs 9887.00 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales10907.009887.00 10 OPM %15.380.68 - PBDT1118.00-973.00 LP PBT430.00-1649.00 LP NP828.00-1217.00 LP Powered by Capital Market - Live

Revenue from operations rose 10% YoY to Rs 10,907 crore in the quarter ended 31 December 2024, driven by a 9% increase in volumes, a 5% increase in price, and a 4% decline due to FX, mainly in Brazil. Profit before tax was at Rs 354 crore in the third quarter of FY25, compared with a loss before tax of Rs 1,666 crore reported in the same quarter a year ago. EBITDA stood at Rs 2,163 crore in the December 2024 quarter, more than three times of EBITDA Rs 416 crore posted in Q3 FY24. EBITDA margin zoomed 1,560 bps YoY to 19.8% during the period under review. The contribution margin surged by 1,380 bps YoY to 41% in the December 2024 quarter, compared to 27.2% in Q3 FY24, driven by an improved product mix, rebate normalization, and COGS improvement. The company's revenue from crop protection was at Rs 9,434 crore (up 11.06% YoY), seeds business income was Rs 1,009 crore (up 8.37% YoY), and non-agro stood at Rs 505 crore (up 2.88% YoY). UPL's revenue from Europe rose by 28% YoY. Income from India climbed 28% YoY, followed by North America, up 59% YoY, and Latin America jumped 12% YoY during the period under review. Income from the rest of the world declined 22% YoY during the quarter. Net debt decreased by $745 million compared to last year, with a $363 million increase in net debt versus March 2024, significantly lower than the $1.7 billion increase observed over the same period last year. Jai Shroff, chairman and group CEO, said, 'We are seeing a strong bounce back versus last year, with normalization of business and recovery of volumes and prices. This has helped in regaining our contribution margins back to our previous higher levels. Through strong focus, the team has done a commendable job in bringing down the working capital, resulting in a significant reduction of our net debt versus September 2024. With this strong performance, we are confident of delivering our EBITDA and free cash flow guidance for the full year.' Mike Frank, CEO, UPL Corporation, said: 'The global crop protection market continues to rebound as farmers and dealer buying patterns are now reset. Our volume growth of 14% in this past quarter demonstrates continued strong demand across regions and our ability to increase market share. Through our focus on customers, driven by investments in marketing excellence, new launches, and differentiated solutions, we have improved our margins as compared to the last few quarters. We expect benefits from this to continue in Q4 as well as in the next financial year.' UPL is principally engaged in the agrobusiness of production and sale of agrochemicals, field crops, and vegetable seeds, and the non-agrobusiness of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals. Powered by Capital Market - Live

UPL will hold a meeting of the Board of Directors of the Company on 31 January 2025.Powered by Capital Market - Live

UPL has fixed 30 January 2025 as record date for the purpose of ascertaining the holders of partly paid-up equity shares to whom the first call notice would be sent. The first call is on partly paidup equity shares of 25% of issue price of Rs 360 per share i.e Rs 90 per share (comprising Rs 0.50 towards paid-up value and Rs 89.50 towards premium) for shares issued on rights basis. Powered by Capital Market - Live

Methane Tamer, CH4 Global's flagship product innovation, is a stable, formulated cattle feed supplement based on whole Asparagopsis seaweed that has been shown in studies to reduce enteric methane emissions from cattle by up to 90% when used as recommended. Under the multi-phase, multi-year agreement, the company and CH4 Global will develop a comprehensive roadmap targeting key livestock markets in India, Brazil, Argentina, Uruguay and Paraguay. The collaboration will establish specific business models to distribute CH4 Global's Methane Tamer cattle feed additive in each of these markets. Jai Shroff, chairman and Group CEO, UPL, said: 'Our OpenAg purpose places collaboration at the heart of progress, and through this partnership we aim to mark an important step in showing how agriculture can deliver on overall efforts to reduce greenhouse gasses. Methane is almost thirty times as harmful for global warming than CO2 and recent reports show the highest levels in 800,000 years, so its reduction must be our top priority. This initiative will present a new model for sustainable livestock which can be scaled globally, helping the industry reach net-zero for greenhouse gasses by adopting methane mitigation technologies, and demonstrating agriculture's positive impact on the environment.' Steve Meller, President and CEO of CH4 Global, said: 'We are thrilled to join forces with a market leader like UPL to accelerate the global adoption of Methane Tamer'. UPL's vast footprint across the key markets and its trusted relationships with farmers make them an ideal partner as we scale up to meet the massive need for enteric methane reduction solutions.' UPL is a global leader in sustainable agriculture solutions. The company has a diverse portfolio of biological and traditional crop protection solutions. The company reported consolidated net loss of Rs 443 crore in Q2 FY25 as against with net loss of Rs 189 crore posted in Q2 FY24. Revenue from operations rose 9.05% YoY to Rs 11,090 crore in the quarter ended 30 September 2024.Powered by Capital Market - Live

UPL announced that CARE Ratings has revised its outlook on long term bank facilities from 'Negative' to 'Stable'. Long term bank facilities rating has been downgraded from CARE AA+ to CARE AA. The short-term bank facilities and Commercial Paper ratings have been reaffirmed at CARE A1+. Powered by Capital Market - Live

UPL, a leading global provider of agriculture solutions, announced on Tuesday that it has secured a $350 million investment from Alpha Wave Global, a prominent global investment firm. This investment will be directed towards Advanta Enterprises, a UPL subsidiary focused on innovative farming solutions and technology. Alpha Wave Global will acquire approximately 12.5% stake in Advanta through a combination of primary and secondary investments. The primary investment of $100 million will be used to fuel Advanta's growth initiatives, while the secondary sale of $250 million will help UPL reduce its debt. This investment marks the second significant funding round for Advanta, following a $300 million investment from KKR in October 2022. In another development, UPL said it will raise Rs 3,377.74 crore through a rights issue of 9.38 crore shares. Shareholders will be offered one rights share for every eight equity shares held, at a price of Rs 360 per rights share. The issue period is from December 5 to 17. UPL is a global leader in sustainable agriculture solutions. The company has a diverse portfolio of biological and traditional crop protection solutions. The company reported consolidated net loss of Rs 443 crore in Q2 FY25 as against with net loss of Rs 189 crore posted in Q2 FY24. Revenue from operations rose 9.05% YoY to Rs 11,090 crore in the quarter ended 30 September 2024, driven by 16% increase in volumes, 7% decline in price and near flat Fx. Powered by Capital Market - Live

Honasa Consumer Ltd, Zee Entertainment Enterprises Ltd, GMR Airports Infrastructure Ltd, Container Corporation Of India Ltd are among the other stocks to see a surge in volumes on BSE today, 19 November 2024.UPL Ltd notched up volume of 16.97 lakh shares by 10:46 IST on BSE, a 15.44 fold spurt over two-week average daily volume of 1.10 lakh shares. The stock rose 1.48% to Rs.544.45. Volumes stood at 66710 shares in the last session.Honasa Consumer Ltd recorded volume of 4.24 lakh shares by 10:46 IST on BSE, a 12.53 times surge over two-week average daily volume of 33820 shares. The stock lost 10.84% to Rs.263.75. Volumes stood at 92813 shares in the last session.Zee Entertainment Enterprises Ltd notched up volume of 13.93 lakh shares by 10:46 IST on BSE, a 3.61 fold spurt over two-week average daily volume of 3.86 lakh shares. The stock rose 7.62% to Rs.124.30. Volumes stood at 5.39 lakh shares in the last session.GMR Airports Infrastructure Ltd saw volume of 10.95 lakh shares by 10:46 IST on BSE, a 2.78 fold spurt over two-week average daily volume of 3.94 lakh shares. The stock increased 5.06% to Rs.82.00. Volumes stood at 2.3 lakh shares in the last session.Container Corporation Of India Ltd saw volume of 84820 shares by 10:46 IST on BSE, a 2.29 fold spurt over two-week average daily volume of 37056 shares. The stock increased 2.08% to Rs.802.40. Volumes stood at 31244 shares in the last session.Powered by Capital Market - Live

UPL will hold a meeting of the Board of Directors of the Company on 20 November 2024Powered by Capital Market - Live