BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
United Breweries Ltd.’s results were worse than our expectations.
Its outlook remains weak, with:
- June volumes down 57% YoY,
- lockdown in various urban centers thus far in Q2 FY21,
- no repeal of excise duty increase in majority of the states (that saw a steep excise increase in May), and
- the continued likelihood of closure of on-trade sales for a few more months.
Moreover, recovery in FY22 is also unclear due to:
- an unprecedented steep excise duty increase threatening both net sales growth and profitability for the next few quarters and
- the risk of weak state finances leading to delay in payments, thereby increasing receivables.
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