UPL Ltd, a prominent player in the agrochemical industry, revealed that UPL Global Ltd, UK, its step-down company, has further invested in Origeo Comercio de Produtos Agropecuarios S.A., a joint venture in Brazil. The investment is to maintain Origeo’s company growth and assist with its working capital needs

Origeo was founded on July 29, 2021, and offers Brazilian farmers integrated agricultural solutions that include inputs, services, financing, and technical assistance. The joint venture is a partnership between Bunge, a leading global agribusiness, and UPL.

Given that it was a joint venture and was carried out through UPL Global, UPL verified that this transaction constituted a related party investment. No more regulatory clearances are needed because the acquisition has been finalized. The investment is in line with UPL’s agriculture strategy aims.

Compared to previous year’s net loss for the same quarter, UPL generated a profit again. In contrast to the Rs 1,217 crore net loss, UPL declared a net profit of Rs 828 crore. During the quarter, the company had lower financing costs and lower material consumption expenditures, both of which helped to increase the bottom line figure.

9 per cent volume growth and 5 per cent price growth drove the 10 per cent increase in revenue to Rs 10,907 crore for the quarter. Foreign exchange problems, mainly in Brazil, counterbalanced this. EBITDA (earnings before interest, tax, depreciation, and amortization) increased from Rs 416 crore to Rs 2,162 crore, while the margin increased from 4.2 per cent to 19.8 per cent.