UBL rallies after Q4 PAT spurts 133% YoY to Rs 98 cr

United Breweries (UBL) rose 3.07% to Rs 1,200.05 after the company's consolidated net profit soared 133.2% to Rs 97.53 crore on 8.4% rise in net sales to Rs 1,544.64 crore in Q4 FY21 over Q4 FY20.

During the quarter, the volumes rose 9% Y-o-Y (year-on-year) while EBITDA stood at Rs 273 crore and EBITDA margin stood at 17.7%. The company's control on costs and working capital resulted in strong free operating cash flows and net positive cash as on 31 March 2021.

All markets across the country witnessed good volume growth in Q4 FY21 barring a few key markets like Telangana, Orissa and Delhi resulting in an overall 9% Y-o-Y growth. The quarter witnessed double digit growth in all regions barring the South, which recorded low single digit growth because of the sharp decline in Telangana due to COVID-19 excise taxation. The quarter also witnessed good recovery in key markets like Karnataka, Maharashtra and Goa.

In northern region, Rajasthan, Punjab, Haryana and Himachal Pradesh recorded good growth except Delhi while UP remaining flat. In east, West Bengal witnessed over 100% growth, while other markets grew at double digits barring Orissa. In South, other than Telangana and Pondicherry all other markets witnessed double digit growth. In the West, healthy double-digit growth in all markets barring Chhattisgarh.

The gross margin during the quarter was higher by 109 bps while full year margins were higher by 57 bps on account of higher revenues due to price increases and better state-mix.

It has been an exceptional year with lockdowns, prolonged on trade closures and COVID-19 related duty increases. As a result, volumes for full year were down by 39%. Demand and underlying profitability saw strong sequential recovery quarter by quarter.

UBL said that due to the second wave of COVID-19 infections, the industry outlook is volatile. Impact will depend on magnitude and duration of lockdowns, including any partial or full trade restrictions. UBL will continue to manage all elements of costs and capital investments with agility in light of the uncertain demand given the situation of second COVID-19 wave across the country. The company has observed recovery of underlying consumer demand post the first COVID-19 wave and continues to be optimistic about the long-term growth drivers of the industry.

The board of the company at its meeting held on Tuesday recommended a dividend of Re 0.50 per equity share for the Financial Year ended 31 March 2021.

UBL is engaged in the manufacturing and sale of beer.

Powered by Capital Market - Live News