Earnings Outlook
United Spirits seen posting 29% on yr growth in PAT
This story was originally published at 22:37 IST on 15 July 2024
Register to read our real-time news.Informist, Monday, Jul 15, 2024
By Avishek Rakshit
KOLKATA – Alcoholic beverages maker United Spirits Ltd is expected to report an over 29% year-on-year jump in its net profit for the Apr-Jun quarter to 3.1 bln rupees, according to the average of estimates from six brokerages. The revenue, however, is expected to fall drastically by nearly 55% year-on-year to a little over 24 bln rupees.
Sequentially as well, the revenue is expected to decline by 62.4% and net profit by 20%. The company had posted a net profit of 2.4 bln rupees in the year-ago period and 3.8 bln rupees in the Jan-Mar quarter. Its revenue in the year-ago period was 53.1 bln rupees and in the Jan-Mar quarter it was 63.9 bln rupees.
The net profit estimate of Anand Rathi Share and Stock Brokers was the highest at 5.4 bln rupees and that of Nuvama Wealth Management the lowest at 2.5 bln rupees. Anand Rathi Share and Stock Brokers pegged the revenue the highest at 28.4 bln rupees and Nuvama Wealth Management the lowest at 22.8 bln rupees.
The company will declare its results for the Apr-Jun period on Jul 23.
In a report, Anand Rathi Share and Stock Brokers said that the alcoholic beverage segment is expected to have had a mixed quarter, as growth in the premium category was seen slowing but the beer category is expected to have maintained double-digit volume growth, aided by the scorching summer.
However, commenting on United Spirits in a note, Nuvama Wealth Management said that dry days during the elections had hampered the overall alcoholic beverages consumption and also posed some logistical challenges. In a report, Kotak Institutional Equities said that both the premium and the mass product portfolio of United Spirits is expected to see a 4% volume growth.
The average of estimates from five brokerages pegged the company's earnings before interest, tax, depreciation, and amortisation at nearly 4 bln rupees. Nirmal Bang Equities estimated it the lowest at 3.8 bln rupees and Motilal Oswal Financial Services estimated it the highest at 4.1 bln rupees.
Anand Rathi Share and Stock Brokers said that the increase in minimum support price for grains could translate into increased procurement cost for the company. Grains are the primary raw material in making alcoholic beverages. However, the cost of glass is seen stabilising, which could keep the gross margins of alcoholic beverages companies at the same levels as the previous quarter.
Kotak Institutional Equities expects gross margins to improve by 55 basis points year-on-year and by 25 bps sequentially due to some interim stability in extra neutral alcohol prices and deflation in glass prices. It expects EBITDA margin to improve by 35 bps to 17.5%.
On the National Stock Exchange today, shares of United Spirits closed higher by over 1% at 1,303.70 rupees.
Following are the Apr-Jun earnings estimates of United Spirits based on reports compiled by Informist from six brokerage houses:
Broker Name | Net Sales (in million rupees) | Net Profit (in million rupees) | EBITDA (in million rupees) |
Anand Rathi Share and Stock Brokers Ltd | 28,360.00 | 5,374.00 |
|
Kotak Institutional Equities | 23,448.00 | 2,674.00 | 4,104.00 |
Motilal Oswal Financial Services Ltd | 23,550.00 | 2,620.00 | 4,117.00 |
Nirmal Bang Equities Pvt Ltd | 23,186.00 | 2,676.00 | 3,849.00 |
Nuvama Wealth Management Ltd | 22,762.00 | 2,545.00 | 3,869.00 |
YES Securities (India) Ltd | 22,914.00 | 2,576.00 | 4,010.00 |
Average | 24,036.67 | 3,077.50 | 3,989.80 |
End
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
