 "Liquor shares rally as United Spirits posts strong profit; stock soars 16%")
Shares of liquor companies were in focus with United Spirits 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, United Spirits.
“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 Pioneer Distilleries (Rs 206) and GM Breweries (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.
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, United Spirits.
“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 Pioneer Distilleries (Rs 206) and GM Breweries (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.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| 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 |
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