UPL (UPL) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue grew 31.6% to Rs 7,764 crore, more than six times the 4–5% global agrochemical market growth cited for the year.

• Consolidated EBITDA rose 22.3% to Rs 1,476 crore; net profit after minority interest and associates was Rs 556 crore, slightly below Rs 558 crore in FY11.

• Growth reflected broader international reach and the Brazil acquisitions; management expects to double revenue within five years.

Financial highlights

• Consolidated revenue from operations was Rs 7,655 crore versus Rs 5,761 crore; total revenue was Rs 7,764 crore versus Rs 5,898 crore.

• Consolidated EBITDA increased to Rs 1,476 crore from Rs 1,207 crore; PBT rose to Rs 729 crore from Rs 664 crore.

• Consolidated net profit after minority interest and associate losses was Rs 556 crore versus Rs 558 crore; EPS was Rs 12.03 versus Rs 12.45.

• Adjusted for exceptional items, consolidated EPS was Rs 12.43 versus Rs 12.77; exceptional costs were Rs 18.45 crore, mainly restructuring in Brazil and Latin America.

• Standalone revenue from operations rose 13.6% to Rs 3,308 crore; standalone PAT increased 44.2% to Rs 227 crore, while EBITDA declined 0.6% to Rs 615 crore.

Outlook and guidance

• Management expects revenue to double from roughly Rs 7,700 crore within five years, supported by the completed global platform and growth in India and South America.

• FY13 outlook anticipated normal-to-above-average Indian monsoons, improved domestic sales and profitability, and opportunities in Latin American, European and Asian markets.

• Planned priorities include greater R&D investment, stronger product pipeline and process efficiency, tighter working-capital cycles, brand returns and higher ROCE.