UPL shares were trading at Rs 482.85 down 9.8 per cent. The lower circuit is at 10 per cent. UPL shares hit a 52 week low on Monday. The company has a market capitalisation of Rs 36,735.31 crore.
Gross debt (excluding perpetual bonds) increased to Rs 361.7b as of Dec'23 from Rs 328b as of Dec'22. Net debt (excluding perpetual bonds) increased to Rs 313.5b as of Dec'23 from Rs 275.3b as of Dec'22. Factoring in
"We see near-term challenges in the global agrochemical industry due to: a) the accumulation of high inventory as distributors opt for need-based tactical purchases, and b) declining agrochemical prices led by aggressive price competition from Chinese (post-patent) exporters. Considering the short-term challenges, cash flow generation and debt repayments remain the key monitorables," the report said.
UPLL expects 4QFY24 to be weaker YoY; however, it expects margin improvement QoQ. The management expects normalized business performance in 2QFY25.
The management expects the price challenge to continue in the near term. UPLL is witnessing a pick-up in volumes in Latin America and double-digit growth in revenue in the RoW region, the report said.