United Spirits Ltd - Q4 FY21 Result Update - YES Securities

(Rating: NOT RATED, CMP: Rs573)

Standalone performance - Revenue grew 11.6% YoY in Q4FY21 and 16.1% adjusted for prior year one-off sale of bulk scotch. Gross margin up by 178bps to 43.9% helped by benign commodities, superior mix and improved productivity. EBITDA margin up by robust 491bps driven by gross margin, lower A&P spends. PAT escalated from Rs239mn to Rs1,673mn on account of lower interest and tax expenses. Revenue de-grew by 13.2% YoY and 10.8% adjusted for one-off sale of bulk scotch with 11% plunge in volume, EBITDA margin declined 405bps owing to negative operating leverage while PAT stood at Rs3,103mn in FY21.

Prestige & Above segment - Revenue up by 25.8% led by robust 19.4% increase in volume, accounted for ~70% of the total revenue in Q4FY21 vs 65.3% in Q1FY20. The strong performance was driven by healthy double-digit growth in Scotch segment. While for FY21, volume/revenue de-grew 9%/7.2% as Q1 and Q2 were severely impacted.

Popular segment - Revenue down by 3.1% owing to 1.5% drop in volume, accounted for ~29% of the total revenue in Q4FY21 marginally down 1.6% over Q4FY20. While for FY21, volume/revenue de-grew 13.8%/17.7% primarily due to lower franchise income, fall in consumption owing to high consumer prices and change in mix, priority sales declined 15.9% in FY21.

Shares of UNITED SPIRITS LTD. was last trading in BSE at Rs.588.2 as compared to the previous close of Rs. 572.7. The total number of shares traded during the day was 310082 in over 7906 trades.

The stock hit an intraday high of Rs. 594.45 and intraday low of 574.1. The net turnover during the day was Rs. 181837372.

Source : Equity Bulls

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