upl third quarter earnings: UPL third quarter results: Co posted a loss of Rs 1,217 crore against profit a year ago.

MUMBAI: UPL, a provider of sustainable agriculture products and solutions, on Friday reported a consolidated loss of Rs 1,217 crore for the December 2023 quarter. The company’s net profit during the corresponding quarter of the last fiscal stood at Rs 1,087 crore, the company said in a regulatory filing.

Revenue from operations for the quarter fell 27.72 per cent to Rs 9,887 crore from Rs 13,679 crore a year ago.

“Inventory reductions continue to pressure the global pesticide market. Overall, prices in the crop protection business remained stable compared to the previous quarter, but fell significantly compared to the previous year’s high amid fierce price competition following patents.

“Given these circumstances, our third quarter results were significantly impacted by these headwinds, as are the rest of our industry, which is currently experiencing its worst economic downturn in decades,” said Mike Frank, CEO of UPL Corporation.

However, the company added that sales increased in Latin America and double-digit sales growth in the Rest of the World (RoW) region.

The company continued to implement cost optimization initiatives to align its operations with the new reality, reducing selling, general and administrative (SG&A) expenses by 19% year-over-year in the third quarter. “We are on track to reduce SG&A by $100 million in FY25 (as of FY23). Going forward, we are optimistic that our performance will gradually improve in Q4 FY24 and Q1 FY25, but normalization will occur starting in Q2 FY25. “We are looking forward to improved management performance,” he said. “Our top priority is to reduce debt.” In line with this, the company recently announced a paid-in capital increase worth up to $500 million, and is also seeking opportunities to raise capital through the platform in addition to operating cash flow. He added that it is being done.

On Friday, the company’s shares closed at Rs 533.50 per share, up 0.68 per cent on the BSE.

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