United Spirits: Raising A Toast To Growth, Says Motilal Oswal
A salesman picks a box of Royal Challenge whiskey produced by United Spirits Ltd., at a roadside liquor store in Gurgaon, Haryana, India. (Photographer: Udit Kulshrestha/Bloomberg)

United Spirits: Raising A Toast To Growth, Says Motilal Oswal

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Motilal Oswal Report

Sharp excise increases were seen over April–May 2020 amid the Covid-19 outbreak, leading to the expectation of a nosedive in sales and volumes.

However, in a positive surprise, United Spirits Ltd. witnessed a strong recovery in Q2 FY21, driven by robust in-home consumption.

With various occasions of indulgence restricted (outdoor social activity, cinemas, and travel and tourism), spirits offered a convenient alternative for in-home consumption.

Accordingly, after a 49% volume decline YoY in the lockdown impacted Q1 FY21, volume decline was arrested to just 3.9% in the Q2 FY21. Hence, we expect volume growth in the positive territory in Q3 FY21.

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Motilal Oswal United Spirits Company Update.pdf


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