Profit before exceptional item and tax rose 8% to Rs 1,515 crore in Q3 FY23 as against Rs 1,399 crore in Q3 FY22. Exceptional items for the periods reported mainly include cost related to losses due to fire at manufacturing plant in Ankleshwar Unit 1, restructuring in Europe, litigation and severance related expenses.
EBITDA jumped 14% to Rs 3,035 crore in Q3 FY23 compared with Rs 2,666 crore in Q3 FY22, mainly driven by robust topline growth. EBITDA margin stood at 22.2% in Q3 FY23, down 141 bps as against 23.6% in Q3 FY22.
The company witnessed continued growth momentum in the crop protection business in Q3 FY23 (22% YoY) along with robust growth in Advanta Seeds (31% YoY) to reach Rs 13,679 crore. The growth in revenues was continued to be led by marginal increase in volumes (1%) higher realizations (13%) and favorable exchange rate (7%).
Revenues from North American region grew 30% YoY, followed by Latin America (up 28% YoY) and India (up 19% YoY).
Mike Frank, chief executive officer- UPL Global Crop Protection, said, We continued to see solid traction in Q3 FY23 following strong first half performance. The product prices remained firm leading to a healthy uptick in realizations. Grower margins remain strong due to elevated agriculture commodity prices, providing a good backdrop for the overall market.
Further he added, going forward, as we look ahead to the fourth quarter, the demand for agrochemicals continues to be strong, especially in the Americas. While there is some channel de-inventorying taking place, we expect strong volume growth in Q4. Given the positive backdrop, we are confident of ending FY23 on a strong footing and meeting our revenue and EBITDA growth guidance as well as the stated reduction in net debt to US$ 2 Bn by March 2023.
UPL is principally engaged in the agro business of production and sale of agrochemicals, field crops, vegetable seeds and non agro business of production and sale of industrial chemicals, chemical intermediates, speciality chemicals.
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