United Phosphorus Q3 net up 33.5%; lags forecast

Mumbai: United Phosphorus reported a 33.5% rise in consolidated third-quarter net profit on substantial ‘other income’ but lagged street estimates due to foreign exchange losses and muted revenue growth.

The agro-chemicals maker on Tuesday posted consolidated net profit of Rs839.1 million for October-December on a sluggish 7% rise in net sales to Rs1,189 crore.

A Reuters’ poll of 21 brokerages had forecast a consolidated net profit of Rs984.33 million on net sales of Rs1,228 crore. The firm, India’s largest pesticide maker, reported foreign exchange losses of Rs354.7 million for the quarter, mainly on foreign currency loans or advances, as compared to a gain of Rs175.5 million last year, it said in a filing to the Bombay Stock Exchange (BSE).

The chemical maker’s ‘other income’ rose to Rs262.2 million in December quarter against Rs82.9 million last year, it said.

“The firm’s India sales seem to be affected as extended rainfall in October-November affected the sowing... reflecting a muted sales growth,” Sageraj Bariya, analyst with Angel Broking, told Reuters.

Many regions of India received unseasonal rains in October and November, affecting normal agriculture practices like application of fertilisers, leading to lesser offtake for firms.

“The sales growth might come in the fourth quarter,” Bariya said.

At 1:20 pm, shares of United Phosphorus were trading at Rs156.70, up 1% in a firm Mumbai market.