Revenues were up 14 per cent higher year-on-year (YoY), driven by Latin America/ India/ RoW markets
while Europe/North America markets
grew in single digit. Profit after tax of the company grew 47 per cent YoY during the quarter, mainly due to increase in other income, lower interest cost and lower tax rate.
However, the management maintains revenue guidance of 6-8 per cent and 10-12 per cent in Ebitda. The growth will be driven by a focus on differentiated solutions as well as new product launches. Price increases in local currencies and cost savings will support margins, it said.
Debt remains a key concern as net debt increased by Rs 178 crore versus March 2020. Overall, balance sheet of the company has not shown significant improvement and cash flow from operations was also under pressure due to higher inventory, Motilal Oswal Securities said in result update.
Analysts at Emkay Global Financial Services do not anticipate any meaningful change in receivable days except if UPL
goes for higher factoring. The brokerage firm believe that the improvement in payables would be offset by slightly higher inventory levels going ahead as its Mar-20 inventory was lower on account of supply disruption.