United Spirits posts Rs. 129.4 crore consolidated PAT in Q2 FY2020-21

UNITED SPIRITS LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.7520.4 crores during the period ended September 30, 2020 as compared to Rs.3825.9 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.129.4 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.(241.5) crores for the period ended June 30, 2020.

The company has reported EPS of Rs.1.82 for the period ended September 30, 2020 as compared to Rs.(3.40) for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 7520.4 crs	₹ 3825.9 crs	96.57%
Net Profit	₹ 129.4 crs	₹ (241.5) crs	153.58%
EPS	₹ 1.82	₹ (3.40)	153.53%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.7520.4 crores during the period ended September 30, 2020 as compared to Rs.7304.5 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.129.4 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.163.1 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.1.82 for the period ended September 30, 2020 as compared to Rs.2.30 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 7520.4 crs	₹ 7304.5 crs	2.96%
Net Profit	₹ 129.4 crs	₹ 163.1 crs	-20.66%
EPS	₹ 1.82	₹ 2.30	-20.87%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.11346.3 crores during the 6 months period ended September 30, 2020 as compared to Rs.14600.7 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.(112.1) crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.365.2 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.(1.58) for the 6 months period ended September 30, 2020 as compared to Rs.5.15 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 11346.3 crs	₹ 14600.7 crs	-22.29%
Net Profit	₹ (112.1) crs	₹ 365.2 crs	-130.7%
EPS	₹ (1.58)	₹5.15	-130.68%

Anand Kripalu, CEO, commenting on the quarter and six months ended 30 September 2020 said: "The underlying revenue decline of 3.4% in the second quarter is ahead of expectations and reflects the resilience of our category, notwithstanding prolonged on-trade closures, the route to market change in Andhra Pradesh and high taxation led price increases post Covid-19. The agility of our supply chain team provided a fast start post lockdown and the renovation of our two core brands supported the top-line recovery.

Prestige & Above segment net sales grew 1% in Q2, backed by strong momentum in our Scotch portfolio, driven by improved relative price positioning in key markets as well as lapping softer comparatives.

The A&P reinvestment rate of 8.6% in Q2, up from 5.0% in Q1, reflected our conscious choice to re-energize demand. Underlying EBITDA margin for the quarter excluding the one-off inventory provision was 14.5% and we delivered a PAT of Rs. 128 Crores.

Our "Raising the Bar" initiative is testimony to Diageo's commitment to the bar and restaurant community. This will provide unequivocal support to our on-trade partners, helping them to safely welcome back consumers during these challenging times.

First half performance has been primarily impacted by initial Covid-19 led lockdown driven challenges in Q1 and lower fixed cost absorption. Contraction of owned and franchise business in AP due to the RTM change further impacted performance adversely. Notwithstanding the satisfactory second quarter performance, our net sales in the first half declined 27%, EBITDA margin contracted to 6% with a net loss of Rs. 87 Crores. Operating cash flow remained strong which facilitated Rs 780 Crores of debt repayment during the first half of FY 2020-21.

Looking ahead, we remain cautiously optimistic with the gradual re-opening of on-premise and the ensuing festive season, recognising that safety and social distancing norms could impact demand versus prior years. Due to unprecedented variability in the macro environment brought on by Covid-19, the company is unable to provide quantitative guidance for fiscal 2021. Our business fundamentals and our financial position is strong allowing us to navigate this pandemic as circumstances evolve."

Shares of UNITED SPIRITS LTD. was last trading in BSE at Rs.510.1 as compared to the previous close of Rs. 509.85. The total number of shares traded during the day was 42934 in over 1913 trades.

The stock hit an intraday high of Rs. 515 and intraday low of 508.6. The net turnover during the day was Rs. 21969407.

Source : Equity Bulls

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