UPL Consolidated Q3 PAT at Rs 261 crore up by 47% On Yearly Basis

UPL formally known as United Phosphorus, came out with its result for October-December quarter on January 24, 2014. Gross sales of the company on consolidated basis jumped by 16% on yearly basis for the quarter ended December 2013 and stood at Rs 2697 crore. Domestic sales, which constitutes 18% of gross sales was up by 21% while international revenues that forms 82% of sales increased by 15% on yearly basis. It was the muted performance from rest of world (14% of total sales), which increased by mere 5% on yearly basis pulled down the growth rate of international business. The overall growth was primarily driven by volume growth that led to a 10% increase in the sales while the price rise helped 2%. The rest was assisted by foreign exchange impact. 

The Company posted an EBITDA of Rs 515 crore, which was higher by 19% from the corresponding period of last year. The EBITDA margins too increased by 41 basis points and was at 19.05% for Q3FY14. 

Profit after tax came at Rs 261 crore for the company and was up by 47% from the same quarter last year. In addition to good sales growth what helped company to post this robust profit growth was fall in the tax provision, which was down by 25% on yearly basis to Rs 52 crore. 

The shares of the company have given good return and prices are up by 43% in last one year, currently it is trading at trailing twelve month PE of 10x, which still looks attractive and long-term investor can take dip in the share price as opportunity to enter the counter.