Higher rebates and high-cost inventory liquidation hit margin

Company

14 May 2024 | 5 Min Read

UPL reported weak 4QFY24 results with revenue decline and EBITDA margin contraction.

Gross debt increased to INR284.4b and net debt to INR222b as of Mar24.

Management expects normalization of crop protection business in 2HFY25 and strong performance of seeds business in FY25.

UPL targets to utilize entire FY25 CFO for debt reduction and reduce debt through rights issue.

Revenue declined YoY across regions except EU and ROW.

Factoring in better-than-expected performance in 4Q and an improving operating scenario in FY25, EPS raised by 21%.