UPL (UPL) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001: product sales Rs 53,117.81 lacs, broadly flat YoY; PAT fell to Rs 2,203.63 lacs from Rs 3,452.42 lacs.

• Export realisations rose to Rs 244.14 crore from Rs 206.53 crore, helping offset weak domestic conditions, weather disruptions and cost pressure.

Financial highlights

• PBT Rs 2,363.63 lacs vs Rs 4,212.42 lacs; PAT Rs 2,203.63 lacs vs Rs 3,452.42 lacs.

• Other income declined to Rs 1,142.12 lacs from Rs 2,526.30 lacs, mainly due to lower subsidiary dividends and no management service fees.

• Excise duty expense rose to Rs 3,780.64 lacs from Rs 3,104.09 lacs; additional pesticide duty could not be passed on to customers.

• Net interest expense was Rs 3,667.89 lacs vs Rs 3,531.55 lacs; raw-material costs increased ~10%.

• EPS Rs 6.45; proposed equity dividend 20%, or Rs 2 per Rs 10 share.

Outlook and guidance

• Current-year outlook viewed as promising on expectations of improved monsoons and a gradual economic recovery.

• Export growth expected to continue; strategy prioritizes international markets, product development, focused execution and cost reduction.

• Agrochemical industry outlook seen as positive, supported by crop-yield needs and low Indian pesticide use per hectare.