United Breweries - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 1285; MCap: Rs. 33915 crore)

United Breweries' performance was higher than I-direct estimates on all fronts. During the quarter, the company also recorded an exceptional income of Rs. 55 crore due to transfer of its rights and interest in a leasehold land property. Adjusting for the exceptional income too, the PAT came above estimates.

Q3FY21 Earnings Summary

- Net revenues grew 43% QoQ, but continued to lag behind its YoY comparable (down 11% YoY) to Rs. 1290 crore (I-direct estimate: Rs. 1145 crore). Volumes grew 31% QoQ (however, down 15% YoY against estimates of 25% de-growth) due to growth in markets of West Bengal (volumes doubled due to low base), Uttaranchal, MP, Jharkhand, North East, Karnataka, Haryana and HP

- Gross margins grew 161 bps QoQ and 119 bps YoY to 53.9% due to a better state mix and benign commodity costs, which led to EBITDA margin of 13.4% (I-direct estimate: 9%). Subsequently, absolute EBITDA came at Rs. 174 crore (up 3.3 x QoQ but down 21% YoY) vs I-direct estimate: Rs. 103 crore

- The company reported exceptional gain of Rs. 55 crore due to transfer of its rights and interest in a leasehold land property

- Subsequently, the company reported a PAT of Rs. 126 crore (unadjusted) and came above I-direct estimate of Rs. 53 crore, as operational performance was further supported by lower depreciation and an exceptional gain

We will be coming out with a detailed report post management conference call.

Shares of UNITED BREWERIES LTD. was last trading in BSE at Rs.1283.25 as compared to the previous close of Rs. 1301.85. The total number of shares traded during the day was 51112 in over 3923 trades.

The stock hit an intraday high of Rs. 1319.4 and intraday low of 1274.6. The net turnover during the day was Rs. 66247016.

Source : Equity Bulls

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