United Spirits Q4 PAT soars 88% YoY to Rs 384 cr

The spirits maker's standalone net profit surged 88.24% to Rs 384 crore in Q4 FY24 as against Rs 204 crore posted in Q4 FY23.

Net sales stood at Rs 2,666 crore in Q4 FY24, up 6.9% from Rs 2,494 crore recorded in the same period a year ago.

The rise in the net sales was mainly driven by competitive performance of the companys renovation and innovation offerings and resilient consumer demand.

The Prestige & Above segment accounted for 86.6% of net sales during the fourth quarter of financial year 2024, down 0.3ppts over the prior year. Prestige & Above segment net sales increased 6.6% during the fourth quarter.

The Popular segment accounted for 11.6% of net sales during the quarter, down 3.4ppt compared to the same period last year. The Popular segment net sales grew 3.3% during the fourth quarter.

Profit before exceptional items and tax soared 96.4% year on year to Rs 491 crore in the quarter ended 31 March 2024. Exceptional item of Rs 31 crore is on account of the ongoing supply agility programme.

EBITDA stood at Rs 361 crore in Q4 FY24, registering a growth of 6.9% YoY. The EBITDA margin was 13.6%, in-line with prior year reported margin, though an expansion of 278 bps on an underlying basis.

Gross margin was at 43.3% was a contraction of 205 bps YoY on reported basis. After adjusting for a one-off credit of Rs 69 crore, on account of reversal of indirect tax provisions in Q4FY23, underlying gross margin expanded by 73bps YoY.

A&P re-investment rate was 12.2% of sales, reflecting spend on renovation and innovation as well as ongoing investment behind the brands, said the compnay.

Interest cost stood at Rs 29 crore in the March quarter, down 19.2% YoY. After adjusting a one-off benefit of Rs 16 crore from the prior year comparator, interest cost was down 44.2%. The interest cost is on account of the customary non-debt related items.

On full year basis, the IMFL maker recorded a 24.71% rise in net profit to Rs 1,312 crore on 10.49% rise in net sales to Rs 10,692 crore in FY24 over FY23.

Hina Nagarajan, managing director & chief executive officer (CEO) of United Spirits said, We have ended fiscal year 2023-24 delivering our double-digit growth guidance and returned to mid teen margins amidst challenging external environment. The year witnessed sequentially moderating demand on the back of sustained consumer inflation and post pandemic consumption normalisation. We have continued our premiumisation intent through innovation and renovation to secure future growth.

Meanwhile, the companys board has recommended a final dividend of Rs 5 per equity share for FY24. The record date for the dividend is fixed on Friday, 12 July 2024. The dividend, if declared, will be paid on or after 6 August 2024.

United Spirits is the largest Indian spirits company that manufactures, sells and distributes beverage alcohol, producing and selling around 60 million cases of Scotch whisky, IMFL whisky, brandy, rum, vodka, gin and wine. Its portfolio of over 15 brands includes McDowell's No.1, Royal Challenge, Signature, and Antiquity as well as Diageos iconic brands such as Johnnie Walker, VAT 69, Black & White, Smirnoff and Ciroc.

Shares of United Spirits added 0.35% to close at Rs 1,178.30 on Friday 24 May 2024.

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