On Tuesday, UPL Limited’s shares slipped over 3% in the early trade as weak quarterly incomes and a cautious annotation from global agrochemical major Adama dented sentiment.

Since UPL and Adama function in similar geographies and segments, a muted commentary from the global player caused due weak quarterly performance from the Indian firm.

At 10:41 am, UPL fell 1.4% to Rs 719.60 on the National Stock Exchange, though the stock was low at Rs 705.30.

About 12 Lakh Company’s shares changed hands on the National Stock Exchange, as against 11 lakh shares in the preceding session.

Adama’s revenue for the January-March quarter period fell 11% yearly to $1,259 million, while EBITDA declined 18% to $165 million.

Adama president and CEO Ignacio Dominguez quoted that market demand is delivered by the stockpiles of products in the channel’s high inventory levels. Decreasing raw materials and pricing also supports a wait-and-watch tactic. “As the agricultural period in Latin America and India begins, inventory will also deplete,” the President added.

The company also said the quarter under review continued to comprehend a decay in crop prices, which also dented demand for agrochemicals. Early purchases were also perceived during the quarter amid product availability concerns and supply absences.