Views on United Phosphorous 3QFY2014 result - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP-Research-Pharma, Angel Broking) on United Phosphorous 3QFY2014 result:

"United phosphorous (UPL) declared robust set of numbers. For the quarter, the company posted sales of Rs. 2605cr, registering a yoy growth of 15.5%. The growth was aided by the volume growth of 10% and a price appreciation of 2%, while the rest of the gains were on back of 3.0% rise in the exchange rate. In terms of geographies, the key regions which posted robust growth were Europe and India , which posted gains of 24% and 21% respectively. Latin America, on the other hand posted a growth of 18% yoy growth during the quarter. On the Operating front, the OPM's came in at 16.2% V/s 16.1% during the last corresponding period. However, inspite of lower expansion in the OPM, lower rise in the interest expenses, during the quarter, lead to the PBT growing by the 28.0% yoy. This along with a lower taxation during the quarter, lead the company to post almost 47.1% rise in the Adj. net profit during the quarter. We maintain our buy on the stock with a price target of Rs. 250."

Source : Equity Bulls

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