The Hindu Business Line : United Phos active on numbers

The company, which has been on an acquisition spree overseas, is expected to report good earnings over the next couple of quarters, dealers and industry analysts said.

For the year ended March 2006, the company reported a 110 per cent increase in net profit at Rs 113.92 crore and a 22 per cent growth in turnover at Rs 1,293.92 crore.

"The company's exports have been doing very well. It also reported very good profits for the full year. The export market for crop protection materials continues to be strong," Mr Rajjubhai Shroff, Chairman and Managing Director, United Phosphorus, said.

His optimism about the company's upward growth curve also stems from the overall buoyancy in the economic growth auguring well for the agricultural sector. With the government's attention moving to the agricultural sector, prospects for agri-inputs, fertilisers and pesticides appear good. "Despite worries about the monsoon season, we believe that off-take of agrochemicals should be good," he said.

The company's chosen path of inorganic growth globally would continue, dealers and analysts believe. "Last fiscal, the company had set aside a huge sum for overseas acquisitions. The market, therefore, expects the company's performance to improve substantially," said an industry analyst.

Anticipation of good first quarter results saw the share price of United Phosphorous witness sustained buying on the bourses. Over the last one month, the company's shares have moved in the range of Rs 260-280 on the Bombay Stock Exchange.

Market buzz once again points out to a possibility of an overseas acquisition. The stock ended the day at Rs 279.45, up 3.58 per cent. It attracted a volume of 8.19 lakh shares on the BSE against Wednesday's figure of 24,416 shares.