United Spirits Q4 Review - Resilient Off-Trade, Margin Performance: ICICI Securities

A salesman packs cans of beer with Royal Challenge whiskey and Smirnoff vodka, both produced by United Spirits Ltd. (Photographer Udit Kulshrestha/Bloomberg)

United Spirits Q4 Review - Resilient Off-Trade, Margin Performance: ICICI Securities

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ICICI Securities Report

Strong Prestige and above segment and a resilient off-trade channel aided volume print of up 8% of United Spirits Ltd. in Q4 FY21.

Restrictions in on-trade and issues in West Bengal and Andhra Pradesh continued to impact.

Favourable gross margins, costs controls and operating leverage helped deliver a superior margin performance (Ebitda margin up 490 basis points YoY to 18.5%).

Improved cash generation aided net debt reduction to Rs 5 billion.

Operating cash flow/free cash flow generation in FY21 was Rs 17.3 billion / Rs 16.2 billion (highest in many years).

New distribution model (online ordering and home delivery), if sustained, can be a structural positive for the industry.

Click on the attachment to read the full report:

ICICI Securities United Spirits Q4FY21 Results Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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