UPL Limited has informed the Exchange about Investor Presentation
UPL Limited, Uniphos House, C.D. Marg, 11th Road, Madhu Park, Khar (West), Mumbai – 400052, India
w: www.upl-ltd.com e: contact@upl-ltd.com t: +91 22 6856 8000
31st January, 2025
BSE Limited Mumbai
National Stock Exchange of India Ltd. Mumbai
SCRIP CODE – 512070
SYMBOL: UPL
Sub.: Investor presentation
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the investor presentation for the quarter and nine months period ended 31st December, 2024.
We request you to take the above information on records.
Thanking you,
Yours faithfully, For UPL Limited
Sandeep Deshmukh Company Secretary and Compliance Officer (ACS-10946)
Encl.: As above
Cc.: 1. London Stock Exchange 2. Singapore Stock Exchange
Registered Office: 3-11, GIDC, Vapi, Valsad - 396 195, Gujarat, India. P +91 260 2432716 CIN: L24219GJ1985PLC025132
Q3 and 9MFY25 Investor Presentation
31 January 2025
Safe Harbor Statement
This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of UPL Limited (UPL) and certain of the plans and objectives of UPL with respect to these items. Examples include statements made about our strategy, estimates of sales growth, of forward-looking statements future EBITDA and future developments in our organic business. Forward-looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward- looking statements. These factors include, but are not limited to, domestic and global economic and business conditions, the successful implementation of our strategy and our ability to realize the benefits of this strategy, our ability to develop and market new products, changes in legislation, legal claims, changes in exchange and interest rates, changes in tax rates, raw materials and employee costs, our ability to identify and complete successful acquisitions and to integrate those acquisitions into our business, our ability to successfully exit certain businesses or restructure our operations, the rate of technological changes, political, economic and other developments in countries where UPL operates, industry consolidation and competition. As a result, UPL’s actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also Risk management, of our Annual Report.
Presentation for Third Quarter ended 31st December 2024
2
Q3FY25 Performance Summary Continued Volume Growth, Positive Price Variance And Strong EBITDA
₹10,907 Cr Revenue
+10% Volume: 9%, Price: 5%, Fx: (4%)
• Strong growth across platforms, driven by volume and positive pricing
• Volume growth in Latin America and Europe
₹4,476 Cr Contribution
+66% Margin: 41.0% | +1,380 bps
• Margin accretion driven by price improvement, product mix, rebate
normalization, and lower COGS
₹2,163 Cr EBITDA
+420% Margin: 19.8% | +1,560 bps
• Led by contribution, productivity enhancement, and overheads savings
$3,021 Mn Net debt
Net debt lower vs. Sep ’24 by ~$264 Mn*
• Lower by $745M vs. last year; $363M increase in Dec vs. Mar ’24, significantly lower than ~$1.7Bn over the same period last year
Note: All changes are year-on-year basis i.e., Q3 FY25 vis-à-vis Q3 FY24 *includes $100 Mn from partly paid rights issue completed in December, 2024
Presentation for Third Quarter ended 31st December 2024
3
UPL Ltd. Q3 Profit-After-Tax Significantly Positive; Nine-month Revenue And EBITDA Growth In Line With FY Guidance
Q3 FY25 Q3 FY24
YoY%
9M FY25 9M FY24
YoY%
10,907
4,476
41.0%
2,313
2,163
9,887
2,689
10%
66%
31,064
29,020
12,239
10,847
7%
13%
27.2% 1,380bps
39.4%
37.4%
200bps
2,272
416
2%
420%
7,356
4,884
7,264
3,583
1%
36%
19.8%
4.2%
1,560bps
15.7%
12.3%
340 bps
Revenue variance
5%
9%
-4%
Q3 FY25 vs. Q3 FY24
EBITDA variance
Contribution
SG&A -40
1,393
2,163
394
416
(₹ Crore)
Revenue
Contribution Profit
Contribution Margin
Fixed Overheads
EBITDA
EBITDA Margin
Amortization /Depreciation
Net Finance Cost
FX Gain / (Loss)
Other Income / (Loss)
PBT
Tax
689
704
-108
46
709
677
716
-613*
-34
-1,623
-499(1)
-59
PAT b/f AI, MI, exceptional items
1,207
-1,564
Income/(Loss) from Associates, JV
-278(2)
Exceptional Cost
Net Profit before MI
Minority Interest
Net Profit
76
854
26
828
-26
16
-1,606
-390
-1,217
2,045
2,291
-626
109
30
-289
319
-445
133
-258
-259
1
1,969
2,288
-1,044
36
-1,683
-319
-1,364
-287
147
-1,798
-558
-1,240
Vol.
Price
Ex.
Q3FY24
Vol/mix
Price/ fx/ cost
SG&A
Q3FY25
9M FY25 vs. 9M FY24
Revenue variance
14%
EBITDA variance
Contribution
18
1,375
SG&A
-92
-5%
-2%
3,583
4,884
* Q3FY24 includes one-time impact of ₹256 cr due to sharp depreciation in Argentina Peso on 13th Dec, 2023 (1) includes ₹592 cr of reversal of provision for tax on account of favorable order from appellate authority (2) pertains to share of losses in associate companies
Vol.
Price
Presentation for Third Quarter ended 31st December 2024
Ex.
9MFY24
Vol/mix
Price/ fx/ cost
SG&A
9MFY25
4
UPL Corporation Strong Volumes, Better Product Mix Driven Margin Growth
(₹ Crore)
Revenue
Contribution Profit
Q3 FY25 Q3 FY24
YoY%
9M FY25
9M FY24
YoY%
8,497
3,037
7,413
1,239
15%
22,313
20,684
145%
7,252
5,746
8%
26%
Contribution Margin
35.7%
16.7%
1,900bps
32.5%
27.8%
470bps
Fixed Overheads
EBITDA
1,383
1,655
1,454
-215
-5%
n.a.
4,539
2,713
4,580
1,167
-1%
132%
EBITDA Margin
19.5%
-2.9%
2,240bps
12.2%
5.6%
650bps
Note: Above financials are after considering proforma adjustments
Q3 FY25 performance
• Volumes led by Latin America and Europe
• Driven by fungicides (Brazil/ Evolution® and Europe/ Proxanil®), and insecticides (Feroce®); higher differentiated/ sustainable vol.
• Margin accretive NPP growth, led by Europe and Brazil
•
Improved margins through product mix, rebate normalization, lower COGS
• Lower overheads from productivity enhancement initiatives
9M FY25 performance
• Volumes driven by key regions, partially offset by pricing
Sale variance: Q3 FY25 vs. Q3 FY24
Sale variance: 9M FY25 vs. 9M FY24
• Led by fungicides and herbicides, supported by NPP; high
5%
-4%
-7%
differentiated/ sustainable volume growth
• Accretive margins from better mix, lower COGS
• Lower SG&A through focused operational efforts
14%
17%
-2%
Outlook
•
Improved margins expected to continue in Q4
• Continued focus on working capital and cost discipline
Vol.
Price
Ex.
Vol.
Price
Ex.
Presentation for Third Quarter ended 31st December 2024
5
UPL Corporation Good Growth Across Key Markets
Q3FY24
Q3FY25
Latin America
+12%
4,380
3,894
North America
+67%
Europe
+23%
(₹ Crore)
Rest of World
-4%
1,379
827
858
1,053
1,717
1,647
• Brazil: robust vol., partly offset by fx • Mancozeb (solo, mixtures) led,
supported by acephate • Rebate normalization vs. LY • Higher differentiated volumes, led
by Feroce®, Evolution®
• Strong in-season demand continues, with channel inventories at near normal levels
• Rebate normalization supporting
overall margin recovery
•
In other LATAM, overall vol. up, partly offset by price pressure and fx impact
• Led by fungicides vol. (e.g., Proxanil®)
• Overall pricing challenge continues in
key markets
• Strong NPP growth vs. LY, through biostimulants, biocontrol products
• Growth driven by France
Presentation for Third Quarter ended 31st December 2024
6
UPL SAS Strong Revenue Growth Along With Working Capital Improvement
(₹ Crore)
Revenue
Contribution Profit
Q3 FY25 Q3 FY24
QoQ%
9M FY25
9M FY24
YoY%
535
90
371
43
44%
111%
2,552
2,416
677
521
6%
30%
Contribution Margin
16.9%
11.5%
530 bps
26.5%
21.6%
500 bps
Fixed Overheads
EBITDA
114
-24
113
-70
1%
n.a.
329
348
348
173
-5%
101%
EBITDA Margin
-4.5%
-19.0% 1,440 bps
13.7%
7.2%
650 bps
Note: Above financials pertain to India Crop Protection business only based on proforma adjustments and exclude ‘Nurture’
Q3 FY25 performance
• Revenue variance: V: 42%, P: 2%
• Vol. led NPP growth, supported by selective post-emergent and
steady rabi placement
• Margin accretion led by new launches, better pricing and mix
• Normalized inventory levels, tighter credit control led DSO
improvement leading to lower working capital
9M FY25 performance
• Revenue variance: V: 6%; price flat
• Cotton impacted from fewer sprays, offset by lower kharif returns;
upside in rice, maize, sugarcane – higher market share
• CM% led by new launches, mix, portfolio rationalization
• Lower overheads from cost efficiencies
Nurture update
• YTD Dec FY25: Rev: ₹36 cr; EBITDA: ₹61 cr loss narrowed vs. ₹89 cr loss LY*
• Nurture.retail growing exclusive product basket ; rise in monthly active users
Outlook
•
Inching towards increasing footprint in sustainability by collaboration with
various forums
• Sustained Q4 growth expected, margins in line with YTD
• Better cash flows in full year
Note: Nurture nos. are based on proforma adjustments *LY excludes ESOP provision (INR 21 cr.) and includes ROU impact (INR 9 cr.) for comparative analysis
Presentation for Third Quarter ended 31st December 2024
7
Q3 FY25 Q3 FY24
QoQ%
9M FY25
9M FY24
YoY%
Q3 FY25 performance
Advanta Strong Revenue Growth Though Margin Under Pressure
(₹ Crore)
Revenue
Contribution Profit
999
570
898
567
11%
0%
3,095
3,029
1,796
1,831
2%
-2%
Contribution Margin
57.0%
63.2%
-615 bps
58.0%
60.5%
-244 bps
Fixed Overheads
EBITDA
346
223
303
264
14%
-15%
1,066
730
938
893
14%
-18%
EBITDA Margin
22.4%
29.4%
-702 bps
23.6%
29.5%
-591 bps
9MFY25 regional mix
2%
11%
Asia/ AME
Americas
49%
Australia
38%
Europe
Regional mix maintained vs. LY despite unfavorable weather conditions and production deviations
• Volume: + 4%, price: + 6 %, FX: + 1% • Led by grain sorghum (Argentina), sunflower (Argentina, Europe),
corn (India)
• Higher price offset by higher input costs from production shortage • CM% impacted due to crop mix and lower recoveries
9M FY25 performance
• Volume: - 1%, price: +2 %, FX: + 1% • CM% impacted due to:
o Higher production costs from weather challenges o Lower recoveries in India, Thailand, Indonesia and Australia
EBITDA performance
• Strategic investments in overheads to support Q4 growth
Strong cash collections year on year growth
Strong balance sheet and robust cash generation • • Net WC days for 9MFY25 at 153 days (PY: 144 days) due to higher sales in Q3 CY vs .last year and buildup of inventory for the sales push planned in Q4 and H1 of next financial year
Presentation for Third Quarter ended 31st December 2024
8
Advanta | Alpha Wave Global transaction summary Placement of 12.44% Equity Stake For US$ 350 million
Key highlights
▪ Alpha Wave Global will
invest US$ 350M to acquire 12.44% stake in Advanta Enterprises Limited (“AEL”)
▪ Primary investment of
US$ 100M at post-equity valuation of ~USD 2.85Bn
▪ Secondary sale of US$
250M in Advanta by UPL
Use of proceeds
Primary US$ 100M
▪Advance Advanta’s growth through organic/ inorganic initiatives, capitalizing on its superior competitive positioning and robust tailwinds within global seeds industry
Secondary US$ 250M
▪Deleverage UPL’s balance sheet, in alignment with its articulated financial objectives
CCI approval expected by end of Feb/ mid Mar ‘25
Presentation for Third Quarter ended 31st December 2024
9
Superform Marginal Revenue Increase, Contracted Margins Due To Mix In Nine Months
(₹ Crore)
Revenue
Q3 FY25
Q3 FY24
QoQ%
9M FY25
9M FY24
YoY%
Contribution Profit
495
437
2,852
1,854
54%
13%
7,594
1,623
7,248
1,821
5%
-11%
Contribution Margin
17.4%
23.6%
-620bps
21.4%
25.1%
-370bps
Fixed Overheads
EBITDA
208
287
189
247
10%
16%
707
916
737
1,084
-4%
-15%
EBITDA Margin
10.1%
13.3%
-330bps
12.1%
15.0%
-290bps
Captive: ▪ Revenue growth led by demand recovery and phasing ▪ Contribution margin impacted due to phasing, unabsorbed cost ▪ Overheads down by 4% on year-to date basis
Non-captive: ▪ Rev. up by 16% vs LY (V: +30%, P: -14%) ▪ Growth in flame retardants, stabilizers and recovery in key account business, partly offset by pricing pressure in optical brightener, dyes, pharma intermediates
▪ Absolute EBITDA up by 9% due to higher volumes, product mix ▪ Commercialization of caffeine at Kudos ▪ Expanding market penetration of phosgene derivatives and H2S chemistries, among others through new products, capacity enhancements
Presentation for Third Quarter ended 31st December 2024
10
Working Capital Significant Reduction Led By Improved Inventory Management And Tighter Credit Control
Dec, 23
Dec,24
140
109
133
109
118
111
(No. of Days)
155
107
Inventory Days
Recievable Days
Payable Days
Net Working Capital Days
Dec, 23
Dec, 24
₹17,491 Cr
₹13,531 Cr
₹16,629 Cr
₹13,530 Cr
₹14,781 Cr
₹13,782 Cr
₹19,339 Cr
₹13,280 Cr
Note: As a risk management measure, receivables are factored on non-recourse basis to banks. Non-recourse receivables factoring as of 31 December ’24: ₹ 4,527 crore ($529 Mn), 31 December’23: ₹6,253 crore ($751Mn)
Working capital decreased by 48 days vs. Dec, 23
•
Inventory days reduced by 31 (> ₹3,900 cr), through improved operational efficiency, and inventory management
• Receivable days lower by 24 (~ ₹3,100 cr), despite 10% yoy revenue growth; improvement through better collections and non-recourse factoring (lower by ₹1,726 cr on yoy basis; equivalent to 14 days)
Presentation for Third Quarter ended 31st December 2024
11
Net Debt at ~$3.02 Bn as of Dec’24 Significant Reduction In Gross Debt Driven By Better Working Capital Management
Gross and net debt position: Dec,24 vs. Dec,23 and Mar,24
All figures are in US$ Mn and ₹ Crore1
Particulars
Gross debt
Cash and cash equivalent2
Net debt*
Net debt adj. for currency impact
Dec’24
$3,532 ₹30,244
$511 ₹4,374
$3,021 ₹25,870
₹25,143
Dec’23
$4,347 ₹36,173
$580 ₹4,827
$3,767 ₹31,346
₹31,346
yoy
Mar’24
vs. Mar’24
($815) (₹5,930)
($69) (₹454)
($745) (₹5,476)
(₹6,203)
$3,410 ₹28,438
$751 ₹6,264
$2,659 ₹22,174
$123 ₹1,806
($240) (₹1,890)
$363 ₹3,696
Net debt* declined significantly by $745 Mn YoY
• Decline from ~$3.77 Bn in Dec’23 to ~$3.02 Bn in Dec’24, led by effective debt mgmt. initiatives, better WC mgmt.
• Adjusted for lower factoring, net debt stands at $2.8 Bn
(down by $968 Mn YoY)
• Vs. Sep, 24, decline by -$264 Mn (vs. +$71 Mn LY)
• Vs. Mar’24, up by $363 Mn, (vs. +$1.7 Bn LY)
Note: 1USD /INR depreciated from 83.21 as on 31 Dec 2023 to 85.62 as on 31 Dec 2024. 2Includes liquid investment of ₹354 crore as of Dec’23 and ₹276 crore in Dec’24 *includes $100 Mn from partly paid rights issue completed in December, 2024
Presentation for Third Quarter ended 31st December 2024
12
ANNEXURE
Presentation for Third Quarter ended 31st December 2024
13
Net Finance Cost Breakdown Q3 FY25 and 9M FY25
Net Finance Cost Breakdown
₹ Crore
Particulars
Q3FY25
Q3FY24
Change
9MFY25
9MFY24
Change
Interest on Borrowings
Interest on Leases & Others
Other Financial Charges
NPV – Interest & Finance
Interest Income
Total Net Finance Cost
539
156
47
83
-121
704
590
140
51
121
-185
716
-51
16
-4
-38
63
-12
1,631
1,505
539
147
242
617
120
368
-268
-322
2,291
2,288
126
-79
27
-126
54
3
Presentation for Third Quarter ended 31st December 2024
14
Presentation for Third Quarter ended 31st December 2024
15
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