UPL shares jump 6% despite fall in Q4 PAT by 95%, firm expects return to growth in FY25

The firm’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 36% YoY to ₹1,933 crore during the quarter while the EBITDA margin fell by 458 basis points (bps) YoY to 13.7%.

For the fiscal year 2024 (FY24), UPL reported a net loss of ₹1,200 crore compared to a net profit of ₹3,569 crore in the previous year. The revenue for the year declined 20% YoY to ₹43,098 crore. The company’s EBITDA was down 51% YoY to ₹5,515 crore while the EBITDA margin contracted 807 bps YoY to 12.8%.

The company said that during the quarter, its net debt increased by $602 million to $2.66 billion at the end of FY24 due to reduced factoring, and the cash flow impact of a decline in profitability.

Mike Frank, chief executive officer of UPL Corporation said looking at FY25, the firm expects a return to growth and normalisation in margins driven by the agri-chemical market returning to normality. “Further, our foremost priority remains to deleverage our balance sheet which we plan to achieve through operational cash flows, completion of rights issue, and pursuing capital raise opportunities within our platforms,” he said.

Frank also pointed out that Europe and the Rest of the World regions had a strong performance, posting double-digit growth.

The board of directors approved a dividend of ₹1 per share.

Shares of UPL have lost over 10% since the start of the year. Over the past year, the shares have fallen by 22%.