UPL Announces 500% Dividend. 5 Takeaways from the Company's Q4 Earnings

Pesticides and agrochemical company UPL today reported its March 2022 quarter results during market hours.

Ahead of its results, shares of UPL tanked over 4.5% on Friday last week.

Here are key takeaways from the company's March quarter results.

• UPL's consolidated net profit jumped 29% to Rs 13.8 bn compared to Rs 10.6 bn reported in the same quarter last year.
• The company said its revenues for the quarter under review witnessed robust growth of 24% to reach Rs 158.6 bn, led by better product realizations, higher volumes, and currency impact. UPL had reported revenue at Rs 128 bn in the same period last year.
• UPL's EBITDA grew by 26% YoY to Rs 35.9 bn as against Rs 28.4 bn in March last year.
• Improved realizations, backward integration linkages for key products and effective supply chain management aided in delivering higher EBITDA margins, up 46 bps to 22.6%.
• The company's board approved a dividend of Rs 10 per equity share, which is 500% of its face value. The dividend will be paid within 30 days of the annual general meeting (AGM).

UPL share price is currently trading 1.5% lower on the BSE. The stock opened at Rs 767 against its previous close of Rs 786.8.

Today's fall can be attributed as the company missed estimates.

The company has seen sharp moves over the year gone by as can be seen from its chart below.

In the past one year, shares of the company are up 24%.

From a trailing twelve months perspective, the company's shares are trading at 14.7 times its earnings (P/E) and at 2.8 times its book value (P/B).

The two closest competitors of UPL are PI Industries, Bayer Crop Science and BASF. PI Industries trades on a PE multiple of 47.7 and a P/BV multiple of 7.3 whereas Bayer Crop has a PE of 36.6 and P/B of 8.

About UPL

UPL is principally engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, speciality chemicals and production and sale of field crops and vegetable seeds.

The company has its presence across 138+ nations and is the 5th largest agrochemical company and 4th largest seed manufacturing company in the world.

To know more about the company, check out UPL's financial factsheet and its latest quarterly results.

You can also compare UPL with its peers.

UPL vs PI Industries

UPL vs Bayer Cropscience

UPL vs Dhanuka Agritech

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