Focus on the premium segment will be a boost to United Spirits' margins

May help mitigate downside risk from tax increases

For United Spirits (USL), 2018 was a dismal year, with the stock declining 13.5 per cent in comparison to a 27-37 per cent rise for two of its peers — United Breweries and Radico Khaitan. The reason for USL’s stock performance was decline in volumes to the tune of 13 per cent in FY18, while the other two reported a growth of 7-11 per cent.

However, USL’s dismal volumes were mainly in the non-premium segment, with the firm’s focus shifting to the premium portfolio. This should boost margins. Despite the fall in overall volumes in FY18, premium segment volumes grew 1.3