UPL Ltd, a prominent agrochemical company, has announced impressive financial results for the fourth quarter of the fiscal year 2024-25. On May 12, the firm revealed a staggering consolidated profit of ₹896 crore, marking a remarkable 2,140% increase compared to the ₹40 crore profit reported in the same quarter last year. This surge in earnings highlights the company’s robust growth trajectory.
Strong Revenue Growth
In Q4 FY25, UPL’s operational revenue reached ₹15,573 crore, reflecting a 10.61% year-on-year (YoY) increase from ₹14,078 crore in the previous year. Such growth underscores the company’s effective strategies in the competitive agrochemical market.
- EBITDA Growth: UPL’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) soared by 68% to ₹3,240 crore.
- Improved Margins: The EBITDA margin also saw a significant enhancement of 710 basis points, reaching 20.8%.
According to UPL, this substantial EBITDA improvement was driven by operating leverage resulting from enhanced productivity.
Full-Year Performance Highlights
For the entirety of FY25, UPL reported a net profit of ₹900 crore, a striking turnaround from a loss of ₹1,200 crore in FY24. The company’s revenue climbed by 8% YoY, totaling ₹46,640 crore, with growth attributed to increased volumes in crop protection, seeds, and specialty chemicals.
- EBITDA for FY25: Increased by 47% to ₹8,120 crore.
- Margin Improvement: The EBITDA margin improved by 460 basis points, reaching 17.4%.
- Debt Reduction: UPL successfully reduced its net debt by ₹8,320 crore, bringing it down to ₹13,860 crore. This was facilitated by a strong operating free cash flow of ₹4,450 crore and proceeds from strategic capital transactions.
Leadership Insights
Jai Shroff, Chairman & Group CEO of UPL, commented on the company’s performance, stating, “This year’s results showcase the strength of our resilient core and the strategic measures we’ve implemented to prepare for the future. The marked improvement in profitability and operational efficiency, coupled with consistent revenue growth and strong free cash flows, reinforces our dedication to sustainable value creation.”
Dividend Announcement
In conjunction with its financial results, UPL’s board has also approved a 300% dividend, equating to ₹6 per equity share for shares with a face value of ₹2 each. This decision reflects the board’s commitment to rewarding shareholders while continuing to foster growth.
As UPL continues to strengthen its position in the agrochemical sector, these results not only highlight the company’s resilience but also its commitment to sustainable practices and shareholder value.
