UPL (UPL) Q4 13/14 earnings summary

Executive summary

• FY14 revenue rose 17% to ₹10,902 crore, EBITDA increased 22% to ₹2,151 crore and consolidated net profit grew 23% to ₹950 crore.

• Growth exceeded the global agrochemical market’s 8.5% expansion, supported by higher volumes, stronger realisations, new products and growth in India and South America.

• EBITDA margin improved to 19.7%; cash profit reached ₹1,563 crore, while cash and bank balances were ₹1,023 crore at year-end.

Financial highlights

• Consolidated revenue from operations was ₹10,771 crore, up 17% YoY; total revenue was ₹10,902 crore versus ₹9,293 crore.

• Consolidated PBT increased 23% to ₹1,157 crore; net profit rose 23% to ₹950 crore from ₹775 crore.

• EBITDA was ₹2,151 crore, up 22%; cash profit rose 21% to ₹1,563 crore from ₹1,298 crore.

• Reported EPS was ₹21.59 versus ₹17.12; EPS excluding exceptional items was ₹23.72 versus ₹17.51.

• Capex was ₹577 crore; production volume increased 12.7% YoY and cost-improvement measures saved ₹160 crore in FY14.

Outlook and guidance

• FY15 topline growth guidance was 12-15%, with improved margins; focus areas included product launches, supply-chain efficiency and lower variable costs.

• Planned 75-80 global product launches in FY15, including differentiated formulations; 75-80 new formulations were also planned.

• Organic growth was prioritised over acquisitions; India and South America were expected to grow faster than their markets.

• A 25-MW coal-fired captive power plant was expected to be commissioned in FY15 to reduce utility costs.