United Spirits hits 52-week low

Post Q2FY17 results, in past six trading sessions the stock fallen 10% against 2% fall in S&P BSE Sensex.

United Spirits has dropped to its 52-week low of Rs 2,041, down 4% on BSE in intra-day trade, extending it’s month-long decline on the bourses.

In the past one-month, the stock has underperformed the market by falling 20%, as compared to 3.4% decline in the S&P BSE Sensex.

Since October 27, post July-September (Q2FY17) results, in past six trading sessions it fallen 10% against 2% fall in the benchmark index.

United Spirits had posted 34% year on year (YoY) decline in standalone EBITDA (earnings before interest, taxes, depreciation, and amortization) at Rs 208 crore in Q2FY17 driven by additional tax levies, one off impact and increased marketing investment. EBITDA margin was down 626 basis points to 10.2% in Q2FY17.

“Introduction of the Local Body Tax in Maharashtra and other indirect taxes negatively impacted EBITDA. Route to market changes in Punjab in the second quarter had a negative impact on performance,” said Anand Kripalu, CEO, United Spirits.

“We have taken price increases effective from 1st October to offset the Local Body Tax. We have made interventions to shape our business which have had a one off impact on EBITDA,” he added.

The company’s standalone net profit grew 15.9% YoY at Rs 79.81 crore in Q2FY17. Net sales of the company rose 6.9% at Rs 2,048 crore on YoY basis.

United Spirits said the net sales of the popular segment declined 3% in the second quarter and declined 5% in the first half impacted by the Bihar prohibition.

At 11:32 am, the stock was down 3.5% at Rs 2,059, as compared to 0.40% decline in the S&P BSE Sensex. A combined 280,094 shares changed hands on the counter on BSE and NSE.