India's UPL posts wider Q2 loss on lower agrochemical prices

UPL

11/11/2024 10:23

Nov 11 (Reuters) - Agrochemicals maker UPL  UPLL.NS  posted a wider quarterly loss on Monday hurt by pricing
pressures.
    The company reported a consolidated net loss of 4.43 billion rupees ($52.5 million) for the three months ended
Sept. 30 from a loss of 1.89 billion rupees a year earlier. 
    Revenue from operations rose 9.1% to 110.90 billion rupees, while total expenses were 10.9% higher at 115.1 billion
rupees. 
    For further results highlights click  urn:newsml:reuters.com:*:nFWN3MI0MU
        
  
    KEY CONTEXT
    While international agrochemical demand is recovering, with higher sales volume across geographies, ample supplies
from China have curbed price increases and hurt domestic companies' margins, analysts said.
    Firms have also been grappling with higher fertiliser and agricultural chemicals inventory and destocking for the
past few quarters, weighing on prices, analysts said.
    UPL, which reported a second straight quarter of revenue growth after declining for four, expects 4%-8% growth in
revenue in fiscal 2025.
   
    
    PEER COMPARISON
                                  Valuation (next 12     Estimates (next 12         Analysts' sentiment        
                                        months)               months)                                          
                      RIC        PE     EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                        growth      growth    rating*  analyst  price          yield
                                                                                       s        target**       (%)
 UPL                   UPLL.NS   15.93            7.26     8.76      450.38   Buy           21      0.95           0.18
 Dhanuka Agritech      DHNP.NS   22.70           16.32    15.75      18.60    Buy           10      0.87           0.87
 PI Industries         PIIL.NS   36.91           25.24    15.43      10.72    Buy           24      0.96           0.33
 Rallis India          RALL.NS   30.93           15.30    12.89      34.77    Sell          13      1.12           0.76
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
    JULY-SEPTEMBER STOCK PERFORMANCE
  
 ** 
 **
 
    -- All data from LSEG
    -- $1 = 84.3520 Indian rupees



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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Eileen Soreng)