UPL Ltd Board Announces Dividend of ₹10 Per Share or 500% Return to Owners

UPL Ltd reported a consolidated net profit of ₹792 crore for the quarter ended in March, a decrease of 42.6% year over year (YoY). The business reported a combined net profit of ₹1,379 crore for Q4FY22. On equity shares with a face value of $2, the board of directors of UPL announced a dividend of ₹10 per share or a 500% return to owners.

According to the company's registration with the exchange, the dividend will be paid or delivered within 30 days of the annual general meeting. In comparison to the same quarter of the previous fiscal year (Q4FY22), the company's consolidated revenue from operations increased by 4.5% to ₹16,569 crore from ₹15,861 crore.

UPL Ltd Faces Q4 Headwinds Due to Product Price Decline and Planting Season Delays
Business news in English Today headlines: The quarter was negatively impacted by a dramatic decline in the product price and delays in the planting season, which made it difficult to position products, according to the company's exchange report. Revenue for FY23 increased by 16% YoY to ₹53,576 crores as a result of improved product realisations, a positive currency effect, and stable volumes. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), according to the business, fell 16% year over year to ₹3,033 crore from ₹3,591 crore for the quarter that ended in March.

EBITDA increased 10% year over year to INR 11,178 crore in FY23 from INR 10,165 crore in FY22. The business stated in an exchange filing that the reason for the lower EBITDA margins was mostly due to Q4's weaker-than-expected performance, which was influenced by headwinds in the post-patent area and negated the strong performance generated over the first nine months.

Healthy cash flows were generated by the firm during the year, which were utilised to lower balance sheet debt and distribute cash to shareholders. The biggest business news today is that the overall debt was reduced by US$ 440 million, and the gross debt was reduced by $617 million. We are prepared to handle the market headwinds going forward and provide improved profitability growth as we move ahead to FY24. According to Jai Shroff, Chairman and Group CEO of the firm, in a news release, "In the longer term, we remain confident of achieving our growth ambitions and transforming the food value chain with a focus on sustainability."