Technology

UPL posted robust numbers for 3QFY2017. In sales, the company posted gross
revenues of Rs3,987cr v/s Rs3,377cr in 3QFY2016, growth of 18% yoy. The growth
was driven by volume (18% yoy), while price dip was around 3% and exchange
gains added 3% to the top-line rise. On EBITDA front, the company posted an
EBITDA of 17.8% v/s 14.7% in 3QFY2016. Along with this, dip of 15% and 2% in
the deprecation & finance cost respectively aided the PBT to grow by 68% yoy.
Consequently, PAT came in at Rs457cr v/s Rs300cr in 3QFY2016, growth of 52.4%
yoy. The management has maintained guidance of 12-15% revenue growth (owing
to presence in fast-growing countries) and 60-100bps improvement in EBITDA margin.
We maintain our neutral rating on the stock.

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