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Rajju Shroff, chairman & MD, United Phosphorus.

Rajju Shroff, chairman & MD, United Phosphorus.

United Phosphorus Q3 net misses forecast

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.

Rajju Shroff, chairman & MD, United Phosphorus.

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.

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