UPL Limited Q4FY21 – Earning Analysis – Globe Capital
17-Nov-2021
UPL Limited Q4FY21 – Earning Analysis

At the CMP of Rs. 691, the stock is trading at full year P/E multiple of 18.9 times with the full year EPS of Rs 36.42 per share.

Q4 FY21 Overview and Verdict
CMP
Rs. 691
Verdict
Higher than estimates

At the CMP of Rs. 691, the stock is trading at full year P/E multiple of 18.9 times with the full year EPS of Rs 36.42 per share.

The Company reported 73.59% growth in consolidated net profit at Rs 1,361 crore for March quarter 2020-21. The company’s net profit stood at Rs 784 crore in the year-ago period.

Revenue from operations was 15% higher in the quarter at Rs 12,796 crore compared to Rs 11,141 crore in the same period of 2019-20. On a sequential basis, the revenues of UPL were up 40.21% as the company began to realize the incremental benefits of its multi-billion dollar acquisitions made.

The Company has posted EPS of Rs 12.75 as compared to Rs 8.08 last year same quarter.

Full Year Earnings:

In 2020-21, the company’s consolidated net profit witnessed 60.46% growth at Rs 3,495 crore compared to Rs 2,178 crore in the previous year.

Revenue from operations grew 8% during 2020-21 to Rs 38,694 crore as against Rs 35,756 crore in the previous fiscal year.

The company has reduced its net debt by Rs 3,140 crore to Rs 18,922 crore as on March 31.

The Company has posted EPS of Rs 36.42 as compared to Rs 23.34 last year same quarter.

Management Takeaways:

As per the management 2020 was certainly a challenging year for the Company, and the world as a whole. Despite being an incredibly tough year, it delivered growth through continuously innovating and transforming, and adapting to the constantly changing situation as best it can. Its financial performance in FY21 has demonstrated the resilience of its model in COVID times.

The Company’s aims to lead the agri-solutions space through differentiated products, bio-solutions, digitisation and collaborations across the food value chain.

It has immensely benefited from the global trend to increasingly look at India as a predominant player in the specialty chemicals segment.

During the year, the company continued to deliver on its commitment to deleverage the company’s balance sheet and reduced the Gross Debt by 5,039 cr. and Net Debt by Rs 3,140 cr. The Gross Debt and Net Debt as at 31st March 2021 was Rs 23,774 cr. and Rs 18,922 cr., respectively.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Land base Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

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