United Phosphorus Q3 net misses f'cast

Chemicals maker United Phosphorus Ltd's quarterly net profit rose a third, below estimates, hurt by losses in associate companies despite robust overseas sales.

The company, which makes crop protection products and industrial chemicals, said consolidated net profit rose to 1.12 billion rupees in October-December from 835.7 million rupees a year earlier.

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Analysts estimated the profit at 1.32 billion rupees, according to Thomson Reuters StarMine.

Sales surged more than 57 percent to 18.72 billion rupees, the company said, driven by jump in overseas sales which comprise 80 percent of its revenues.

Its sales in North America zoomed 62 percent in October-December, while those in Europe grew 31 percent as compared to 15 percent growth in its home market India.

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Combined loss from associate companies -- India's Advanta Group and Brazil-based Sipcam UPL, stood at 123.6 million rupees in December quarter, compared to an income of 49.9 million rupees over the same period last year.

"Although the operating margins are steady at 18 percent, growth from the domestic market will remain a challenge," Sageraj Bariya, co-founder at research firm Equitorials, said.

"Demand scenario in India is not going to be good... also, a lot of smaller companies have cropped up in the segment giving a tough competition."

Shares in United Phosphorus fell 3.54 percent to 144.35 rupees by 0925 GMT in a weak Mumbai market.