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Liquor shares rally as United Spirits posts strong profit; stock soars 16%

Pioneer Distilleries, GM Breweries, Associate Alcohols, Radico Khaitan, United Breweries, Empee Distilleries and Global Spirits among others were up 5% to 10% on the BSE

SI Reporter  |  Mumbai 

Image via Shutterstock
Image via Shutterstock

Shares of companies were in focus with rallying 16% to Rs 2,985 on the BSE in intra-day trade after the company reported a strong 84% jump net profit at Rs 153 crore, despite a drop in net sales during September 2017 quarter (Q2FY18). The company had profit of Rs 83 crore in the same quarter previous fiscal. Earnings before interest, tax, depreciation and amortization (ebitda) increased by 57% to Rs 318 crore, while EBITDA margin improved by 631 bps at 16.3% in Q2FY18. The company said both primarily driven by increased gross margin (up 559 bps) and lower staff costs, partially offset by marketing investment increasing 11%. Reported net sales declined 4% to Rs 1,951 crore, impacted by the highway ban and the one off impact of operating model changes. "In the second quarter we have delivered strong underlying net sales growth of 4% driven by 12% growth in the Prestige & Above segment, despite the impact of the highway ban.

Additionally, we have delivered expanded margins despite the impact of Goods and Service Tax (GST),” said Anand Kripalu, CEO, “With the recent Supreme Court clarification on the highway ban, we have seen outlets start to re-open in September and we expect the impact of the highway ban to continue to decrease and the business to normalize by end of the third quarter,” he added. Among the other breweries & distilleries stocks (Rs 206) and (Rs 770) have locked in upper circuit of 10% each on the BSE. Associate Alcohols, Radico Khaitan, United Breweries, Empee Distilleries, Global Spirits, Som Distilleries, Tilaknagar Industries and IFB Agro Industries were up in the range of 5% to 9%. On comparison, the S&P BSE Sensex was up 0.22% at 33,219 points at 10:20 AM.

UNITED SPIRITS 2952.40 2575.25 14.7
G M BREWERIES 770.30 700.30 10.0
PIONEER DISTIL. 205.70 187.00 10.0
ASSOC. ALCOHOLS 183.90 169.55 8.5
RADICO KHAITAN 222.95 206.40 8.0
TILAKNAGAR INDS. 15.65 14.50 7.9
UNITED BREWERIES 1011.60 940.40 7.6
EMPEE DISTILL. 46.35 43.25 7.2
GLOBUS SPIRITS 93.35 87.35 6.9
SOM DISTILLERIES 188.00 177.75 5.8
PINCON SPIRIT 64.95 61.70 5.3
IFB AGRO INDS. 727.00 693.05 4.9
JAGATJIT INDS. 58.20 55.55 4.8

First Published: Fri, October 27 2017. 10:23 IST