United Spirits clocks a massive 204% yoy growth in Q1FY23 PAT at Rs210 crore; stock slides ~4%

27 Jul 2022 , 09:47 AM

United Spirits Limited announced its results for the quarter ended June 30, 2022, and reported a significant jump in profit during the period.

The company reported a 204% yoy increase in PAT for Q1FY23 at Rs210 crore as compared to Rs69 crore in the previous corresponding quarter.

Company witnessed a growth of 34.30% in sales against a low base the previous year and higher sales of premium brands.

Net sales revenue during the quarter under review increased to Rs2169 crore while volume logged growth of 18% yoy.

The company stated that it saw a growth of 44% and, accounted for 71% of its overall revenue, while sales of popular or mass-priced products increased by 13%.

According to the company, double-digit top-line growth reflects strong consumer demand in the off-trade channel, a recovery in the on-trade channel, active portfolio management, and the soft comparator benefit.

Gross profit margin fell by 370 basis points to 40.9%. USL announced in May that it will sell 32 brands, including Haywards, Old Tavern, and White-Mischief, to Inbrew for Rs828 crore, with a five-year franchise agreement for 11 other brands, including Bagpiper and Blue Riband.

At around 9.54 AM, United Spirits was trading at Rs813.10 down by Rs36.95 or 4.35% from its previous closing of Rs850.05 on the BSE. The scrip opened at Rs845 and has touched intraday high and low of Rs845 and Rs810 respectively.