DSIJ Mindshare

United Spirits' FY16 Net Profits positive after FY12

India’s largest spirits company has posted a drop in sales and a net loss in Q4FY16. However, company has seen a yearly net profit for the first time after FY12 in the wake of lower interest payment amid reduced debt by the company.

Company has posted results on May 26 after market hours and thereby the stock has tumbled 1.7 per cent to Rs 2423. At the beginning of the current month United Spirits had approached Diageo to hike stake in the company.

Considering quarter on quarter performance, Company’s standalone revenues have come in at Rs 2283.64 crores in this quarter as against Rs 2638.09 crores in Q3FY16, a decrease of 13.4 per cent. However, Company’s EBITDA too has dropped by 66.2 per cent to Rs. 91.11 crores as against Rs. 269.21 crores despite of reduced costs. Company has posted a net loss of Rs 8.99 crore as against a net profit of Rs 40.95 crores QoQ.

The Year on Year (YOY) has witnessed enhancing results where the company’s standalone revenues have grown by 13 per cent from Rs. 2020.37 crores. EBITDA of the company has risen 263 per cent from Rs 25.08 crore during the same quarter of last year. Net loss has seen a recovery.

On a yearly basis, company’s consolidated Revenues stand flat at Rs 9240.07 crore for the year ended March 2016 as compared to Rs 9159.39 crore for FY15. EBITDA has surged 60.9 per cent to Rs. 972.63 crore for FY16 as compared to Rs 604.48 crore in FY15 amid reduced raw material and employee costs. Company has posted a Net profit for the first time after three consecutive net losses. Net profits have come in at Rs 967.75 crore.

United Spirits Limited manufactures, purchases and sells Beverage Alcohol (Spirits and Wines). The Company operates in two geographic segments, including India and Outside India. Both India and outside segments resort to a business of manufacture, purchase and sale of Beverage Alcohol through tie-ups and brand franchisees.

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