Liquor shares rally on good Q4 show; UBL, Radico Khaitan hit new high
United Breweries (UBL),United Spirits and Radico Khaitan rallied between 5% and 7% on the BSE in intra-day trade
 "United Spirits' net worth more than halves in 4 yrs")
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Shares of liquor companies were in focus with frontline stocks like United Breweries (UBL), United Spirits and Radico Khaitan rallying between 5% and 7% on the BSE after reporting good set of numbers in the fourth quarter ended March 2018 (Q4FY18).
UBL (up 7% to Rs 1,258) and Radico Khaitan (up 7% at Rs 456) have hit their respective new highs on the BSE in intra-day trade on Friday.
In Q4FY18, UBL reported a standalone net profit of Rs 909 million against Rs 67 million in the corresponding quarter of previous fiscal. The company recorded a volume growth of 24% compared with industry growth of 22%.
“This growth was partly the result of a low comparative, as Q4 2016-17 already included the effects of the highway ban. Net revenue grew 32%, primarily due to volume growth and also a favourable state mix,” UBL said in a press release.
For the financial year 2017-18 (FY18), the beer industry grew by about 7% with UBL delivering 10% volume growth. This was the first double-digit volume growth since FY 2010-11 and resulted in market share gains.
For FY2018-19, in the absence of any large regulatory market disruptions, UBL expects continued mid-single digit industry volume growth. In order to meet consumer demand, the company is planning to increase its capital expenditure towards capacity expansion by about 50%, from the current capital investment level of approximately Rs 2,000 million, it added.
United Spirits too rallied 7% to Rs 3,337 on the BSE in early morning trade after the company reported a standalone net profit Rs 2,110 million in Q4FY18 against a net loss of Rs 1,042 million in the same quarter last fiscal.
Meanwhile, total 9 liquor companies so far announced their Q4FY18 results have reported a combined net profit of Rs 3,856 million against an aggregate net loss of Rs 808 million in previous year quarter.
UBL (up 7% to Rs 1,258) and Radico Khaitan (up 7% at Rs 456) have hit their respective new highs on the BSE in intra-day trade on Friday.
In Q4FY18, UBL reported a standalone net profit of Rs 909 million against Rs 67 million in the corresponding quarter of previous fiscal. The company recorded a volume growth of 24% compared with industry growth of 22%.
“This growth was partly the result of a low comparative, as Q4 2016-17 already included the effects of the highway ban. Net revenue grew 32%, primarily due to volume growth and also a favourable state mix,” UBL said in a press release.
For the financial year 2017-18 (FY18), the beer industry grew by about 7% with UBL delivering 10% volume growth. This was the first double-digit volume growth since FY 2010-11 and resulted in market share gains.
For FY2018-19, in the absence of any large regulatory market disruptions, UBL expects continued mid-single digit industry volume growth. In order to meet consumer demand, the company is planning to increase its capital expenditure towards capacity expansion by about 50%, from the current capital investment level of approximately Rs 2,000 million, it added.
United Spirits too rallied 7% to Rs 3,337 on the BSE in early morning trade after the company reported a standalone net profit Rs 2,110 million in Q4FY18 against a net loss of Rs 1,042 million in the same quarter last fiscal.
Meanwhile, total 9 liquor companies so far announced their Q4FY18 results have reported a combined net profit of Rs 3,856 million against an aggregate net loss of Rs 808 million in previous year quarter.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| UNITED BREWERIES | 1246.15 | 1180.05 | 5.60 |
| RADICO KHAITAN | 451.00 | 427.30 | 5.55 |
| PINCON SPIRIT | 18.95 | 18.05 | 4.99 |
| UNITED SPIRITS | 3265.00 | 3122.05 | 4.58 |
| TILAKNAGAR INDS. | 20.10 | 19.40 | 3.61 |
| SOM DISTILLERIES | 262.25 | 254.40 | 3.09 |
| GLOBUS SPIRITS | 132.60 | 129.40 | 2.47 |
| ASSOC.ALCOHOLS | 411.00 | 404.70 | 1.56 |
| PIONEER DISTIL. | 259.00 | 257.50 | 0.58 |