You are here: Home » Companies » News
Business Standard

ICRA reaffirms AA-plus rating on United Spirits' financial instruments

ICRA has reaffirmed AA-plus rating with a stable outlook on United Spirits Ltd's (USL's) Rs 3,425 crore long-term, short-term and non-fund based financial instruments

United Spirits  | ICRA


United Spirits' net worth more than halves in 4 yrs
United Spirits

has reaffirmed AA-plus rating with a stable outlook on Ltd's (USL's) Rs 3,425 crore long-term, short-term and non-fund based financial instruments.

It also reaffirmed A1-plus rating on USL's commercial paper and has withdrawn the rating on Rs 750 crore non-convertible debentures at the company's request as there was no outstanding against the facility.

said the ratings continue to factor in USL's strong operational and financial flexibility besides robust corporate governance and compliance practices by virtue of being a 55.94 per cent subsidiary of Diageo Plc.

USL continues to benefit from the business synergies through the implementation of Diageo's global best practices across business functions which have complemented its large scale of operations.

said the ratings also consider USL's strong market position in the domestic spirits industry supported by its large distribution network, wide product portfolio and presence across price points, flavours and segments.

USL manufactures, sells and distributes a portfolio of premium brands like Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell's No.1, Smirnoff and Captain Morgan.

With sales volumes of 79.7 million cases during FY2020, the company is the largest player in the domestic spirits industry. Headquartered in Bengaluru, the company's footprint is supported by 50-plus manufacturing facilities across states and union territories.

In FY20, it had operating income of Rs 9,325 crore and profit after tax of Rs 624 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 27 2021. 12:24 IST