Agrochemical major UPL’s management reaffirmed its FY25 guidance on Monday, November 11, projecting EBITDA growth of over 50% and revenue growth of 4-8% for the fiscal year. This outlook follows UPL’s report of a net loss of ₹443 crore for the September quarter, up from a net loss of ₹189 crore in the same quarter last year.

With near-complete dealer destocking in UPL’s crop protection segment, order patterns are beginning to normalise, positioning the company for margin improvement in the October-December quarter, according to management. Despite anticipated headwinds from commodity prices, UPL expects gradual margin accretion in the coming months.

In Brazil, UPL anticipates mid-single-digit year-on-year sales volume growth from October to March, with recent pricing pressures in crop protection products expected to ease during this period. However, UPL’s average cost of debt rose to 7% in the July-September quarter, up from 6.25% a year ago.

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Quarterly revenue rose by 9% to ₹11,090 crore, compared to ₹10,170 crore in the same period last year. Revenue growth was driven by a 16% year-on-year increase in volumes, offset by a 7% decline in prices and near-flat forex rates.

EBITDA remained unchanged year-on-year at ₹1,576 crore, while the EBITDA margin narrowed to 14.2% from 15.5%. The contribution margin for the quarter fell to 37.7% from 39.9% last year.

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