UPL Profit Up 39%

Avatar para Matt Hopkins Por Scott C. Lucas|7 maio 2008

According to a Reuters poll of brokerages, UPL’s profit is aided by the integration of its largest acquisition, French agrochem firm Cerexagri, as well as a 19% increase in revenue.

“Operating margins are likely to remain stable at 21.9%, impacted by consolidation of Cerexagri. Lower interest cost would also boost recurring profit growth,” said an earnings preview note by Motilal Oswal Securities. UPL averages operating margins of 24% to 25% on a standalone basis.

Analysts say that other factors in UPL’s growth have been the cost of key raw materials such as sulfur, yellow phosphorus, and phosphoric acid has been rising as key producer China has become stricter with quality due to the upcoming Beijing Olympics.

However, analysts remain bullish on the overall growth prospects for the company, and are looking at about 15% topline growth and 40% net profit growth for 2008/09.

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