United Phosphorous Cultivates Positive Results

United Phosphorous (UPL) a global generic crop protection, chemicals and seeds company today (April 25, 2014) announced its March quarter result for the fiscal year 2014. The result shows that the company has posted a strong set of numbers during this quarter.

On consolidated basis, the gross sales of the company surged by 19% YoY to Rs 3365 crore for the quarter ended March 2013. The increase in volume sales (6%), price increase (5%), exchange impact (up by 8%) has led the overall sales of the company to grow at a rate of 19% during Q4FY14 as compared to the same quarter of the previous year. The major revenue for the company comes from international subsidiaries. The revenue from the international subsidiaries which constitutes 89% of the gross sales has increased by 17% on yearly basis, while the domestic sales, which constitute 11% of the gross sales, have increased by 31% during the Q4FY14.

As far as segment wise performance, the company is divided into two business segment. Agro activity, the main area of company’s operation has reported a growth of more than 26% YoY to Rs 3216.56 crore during the last quarter of FY14, while the income from the non agri activity have reported a decline of 2% YoY to Rs 197.71 crore for the Q4FY14. From this it is clear that the overall business of the company has performed well due to better performance in the agro activity.

Inspite of some crop damage due to hail storm in North and Western India the company has posted a handsome growth during this quarter. This was due to significant improvement in the business conditions with widespread monsoon and also due to well performance by new products like Ulala and Atabron during the year.

The EBITDA of the company was Rs 672.3 crore, up by 44.6% from the corresponding period of last year. The EBITDA margin has also increased by 257 basis points to 20.14% for Q4FY14. The total expenses have increased, but it was lesser than the increase in total sales of the company. This has helped the EBITDA margin to improve during this quarter.

The company has posted a profit after tax (PAT) of Rs 360.28 crore during the last quarter of FY14, reporting a growth of more than 62% YoY. In addition to the growth in the total sales, the fall in tax (16% YoY) has also helped the company to post better result during this quarter.

The stock of the company is trading at 10.62x of its trailing twelve months earnings. In the last one year the stock has given a return of 78%.