United Spirits - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 572, MCap - Rs. 41530 crore)

United Spirits' adjusted results were above I-direct estimates on all fronts. However, with exceptional expense of Rs. 76 crore, due to impairment of part inter-company loan provided to Pioneer Distilleries and investment made in Hip Bar, reported PAT came in largely in line with estimates.

Q4FY21 Earnings Summary

- Net revenues grew 12% YoY to Rs. 2224 crore (I-direct estimate: Rs. 1991 crore), driven by continued off-trade momentum (in spite of softer on-trade channel)

- Prestige & Above segment volumes grew 19% YoY to 10 million cases (I-direct estimate: 8.8 million cases), driven by weak base and a strong scotch demand. Popular segment, however, reported largely flat volumes at 9.7 million cases (I-direct estimate: 9.4 million cases). Revenues for prestige and above segment and popular segment grew 26% YoY and remained flat, at Rs. 1532 crore and Rs. 657 crore, respectively

- EBITDA margins expanded 490 bps YoY to 18.5% and came above I-direct estimate of 16%, due to better product mix and improved productivity (gross margins came at 43.9% vs 42.2% in Q4FY20). Subsequently, the resultant EBITDA grew 52% YoY to Rs. 412 crore and came above I-direct estimate of Rs. 319 crore

- Subsequently, reported PAT grew 6x to Rs. 167 crore on a weak base (I-direct estimate of Rs. 177 crore), as strong operational performance was negated by an exceptional expense of Rs. 76 crore

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

Shares of UNITED SPIRITS LTD. was last trading in BSE at Rs.571.7 as compared to the previous close of Rs. 572.3. The total number of shares traded during the day was 78750 in over 3150 trades.

The stock hit an intraday high of Rs. 578 and intraday low of 570.1. The net turnover during the day was Rs. 45147413.

Source : Equity Bulls

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