UBL Q3 PAT jumps 19% to Rs 127 cr

On a consolidated basis, United Breweries (UBL) reported 18.8% jump net profit to Rs 126.78 crore on 11.3% decline in net sales to Rs 1291.10 crore in Q3 FY21 over Q3 FY20.

The beer maker's profit before tax stood at Rs 170.88 crore in Q3 FY21, up 20.7% from Rs 141.62 crore in Q3 FY20. Total tax expense spiked 26% year on year to Rs 43.69 crore in Q3 FY21 over Q3 FY20.

UBL said it saw sharp volume recovery over the previous quarter with most markets bouncing back. All regions barring North recorded strong growth compared to the previous quarter with all India sequential growth clocking 37%.

With most markets showing recovery in Q3, UBL's volumes were at 85% of previous year, helped by the doubling of volume in West Bengal, growth in the markets of Uttaranchal, Madhya Pradesh, Jharkhand, North East, Karnataka, Haryana and Himachal Pradesh. Tamil Nadu and Rest of Maharashtra remained flat. The strong segment registered a quicker recovery when compared to the mild.

The gross margin during the quarter was higher by 119 bps as compared to previous year due to positive State mix on account of the faster recovery in higher contributing markets and benign input costs.

Result for the quarter include non-recurring provisions, made by way of abundant caution, for potential expiry of stocks/doubtful debtors to the tune of Rs 23 crore. EBITDA excluding these items was Rs 201 crore, with an EBITDA margin of 15.6%, up 16 bps versus prior year.

Year to date EBITDA is Rs 157 crore and profit before tax is Rs 24 crore. This EBITDA excludes an exceptional gain of Rs 55 crore on sale of leasehold land rights, which is however included in profit before tax.

UBL added that higher liquidity resulting from cost control, working capital management and recalibrated capex resulted in net positive cash position of Rs 97 crore in December quarter end. The company continues to actively review costs, focus on working capital management and capital investments to further strengthen the operational performance.

"The industry outlook continues to develop positively yet remains volatile depending amongst others on the future trajectory of the pandemic. UBL is well positioned to take advantage of the market opportunities being the market leader with a strong brand portfolio and robust balance sheet," UBL said.

Shares of UBL were down 0.51% at Rs 1276.55. The company is engaged in the manufacture and sale of beer.

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