UPL's Financial Performance Declines, MarketsMOJO Issues 'Sell' Call

UPL, a largecap company in the pesticides and agrochemicals industry, recently announced its financial results for the quarter ending September 2024. However, the news was not positive as the company saw a decline in its financial performance.

According to the latest financial report, UPL's Profit Before Tax (PBT) less Other Income has fallen by 35.14% year on year, standing at Rs -550.00 crore. This is a significant decrease from the previous quarter's score of -11, which has now fallen to -14. Similarly, the company's Profit After Tax (PAT) has also seen a sharp decline of 326.5% year on year, with a quarterly figure of Rs -435.00 crore.

In addition, UPL's Operating Cash Flow for the year has also hit a low of Rs 1,822.00 crore, which is the lowest in the last three years. This indicates a decrease in the company's cash revenues from business operations. Furthermore, the Dividend Payout Ratio (DPR) for the year is also at its lowest in the last five years, standing at -6.25%. This means that UPL is distributing a lower proportion of its profits as dividends.

As a result of these financial indicators, MarketsMOJO has given a 'Sell' call for UPL's stock. The company's near-term trend for PBT and PAT is negative, and it is facing challenges in generating cash revenues and distributing profits to its shareholders. Investors should keep a close eye on UPL's financial performance in the coming quarters.