United Phosphorus Ltd. (UPL) posted robust numbers for 4QFY2017. In sales, the company posted gross revenues of `5,341cr v/s `4,434cr in 4QFY2016, growth of 20.5% yoy. The growth was driven by volumes (16% yoy), while growth in pricing was around 2%, which coupled with exchange gains added 2% to the top-line rise. On EBITDA front, the company posted an EBITDA of 19.4% v/s 13.5% in 4QFY2016. Along with this, dip of 6.1% in the depreciation & 65.9% yoy growth in other income aided the PBT to grow by 151.6% yoy. Consequently, PAT came in at `740cr v/s `208cr in 4QFY2016, growth of 256.2% yoy. The management has maintained guidance of 12-15% revenue growth (owing to presence in fast-growing countries) and 50-70bps improvement in EBITDA margin. We maintain our Neutral rating on the stock.

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