United Spirits - Modest Recovery In Q3; Long Way To Go: Dolat Capital 
Bottles of United Spirits Ltd.’s Jura, left, and Dalmore Scotch whiskies are arranged for a photograph. (Photographer: Kuni Takahashi/Bloomberg)

United Spirits - Modest Recovery In Q3; Long Way To Go: Dolat Capital 

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Dolat Capital Report

United Spirits Ltd.’s Q3 FY21 was ahead of our subdued expectations. Revenue trends in Q2 FY21 (down 3.4% YoY) and Q3 FY21 (down 3.6% YoY) were similar – a key disappointment.

The company’s revenue/Ebitda/adjusted profit after tax declined by down 3.6/down 9.5/down 11.2%.

In nine-months FY21, the company’s revenue/Ebitda/APAT were down 18.2/down 46.5/down 59.7% YoY versus Radico Khaitan Ltd. down 6.4/up 6.3/up 11.1% YoY.

Despite benign raw material prices, modest gross margin expansion of 24 basis points YoY (230 basis points for Radico) was another area of regret.

Click on the attachment to read the full report:

Dolat Capital United Spirits Q3FY21 Result Update.pdf

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