United Phosphorus Q3 net misses forecast1 min read . Updated: 30 Jan 2012, 03:07 PM IST
United Phosphorus Q3 net misses forecast
Mumbai: Chemicals maker United Phosphorus Ltd’s October-December net profit rose a third, below estimates, hurt by losses in associate companies despite robust overseas sales.
Analysts estimated the profit at ₹ 132 crore, according to Thomson Reuters StarMine.
Sales surged more than 57% to ₹ 1,872 crore, the company said, driven by jump in overseas sales which comprise 80% of its revenues.
Its sales in North America zoomed 62% in October-December, while those in Europe grew 31% as compared to 15% growth in its home market India.
Combined loss from associate companies -- Advanta Group and Brazil-based Sipcam UPL, stood at ₹ 123.6 million in December quarter, compared to an income of ₹ 49.9 million over the same period last year.
“Although the operating margins are steady at 18%, growth from the domestic market will remain a challenge," Sageraj Bariya, co-founder at research firm Equitorials, said.
“Demand scenario in India is not going to be good... also, a lot of smaller companies have cropped up in the segment giving a tough competition."
Shares in United Phosphorus fell 3.54% to ₹ 144.35 by 02:55 pm in a weak Mumbai market.