PREVIEW-United Phosphorus Jan-Mar profit seen up 39 pct

MUMBAI, May 2 (Reuters) - United Phosphorus Ltd (UNPO.BO: Quote, Profile, Research) is expected to report a 39 percent rise in January-March net profit on strong growth in both domestic and international markets, analysts said.

According to a Reuters poll of brokerages, the agrochemical maker is expected to report consolidated net profit of 1.4 billion rupees, after integrating operations of its largest acquisition, French agrochem firm Cerexagri.

Revenue is likely to increase 19 percent to 11.62 billion rupees. The company will announce it fourth quarter results later in the day.

"Operating margins are likely to remain stable at 21.9 percent, impacted by consolidation of Cerexagri. Lower interest cost would also boost recurring profit growth," said an earnings preview note by Motilal Oswal Securities.

United Phosphorus averages operating margins of 24-25 percent on a standalone basis.

"It's a very good quarter for them in terms of revenue as all regions performed well. The key thing is how they will mangage the raw material," said an analyst with a domestic brokerage.

Analysts said cost of key raw materials - sulphur, yellow phosphorus and phosphoric acid - has been rising as key producer China has become stricter with quality due to the Olympics.

However, thay remain bullish on the overall growth prospects for the company, and are looking at about 15 percent topline growth and 40 percent net profit growth for 2008/09.

Brokerage Motilal Oswal also said it expects the company's plan to write off registration and acquisition costs will boost earnings per share. It has maintained a "buy" recommendation on the stock.

United Phosphorus shares, which have remained flat through the quarter, ended on Wednesday at 322.95 rupees, down 1.5 percent in a weak Mumbai market. (Reporting by Bharghavi Nagaraju & Prashant Mehra; editing by Sunil Nair)