ICICIdirect.com's report on United Spirits Net revenue for Q4FY14 stood at Rs 1943.3 crore, posting growth of ~4% YoY against Rs 1871.4 crore in Q4FY13. Volume for FY14 stood at 120.7 million cases vs. 123.7 million cases in FY13. Sales for the company’s Prestige & above segment grew 15% YoY to 33 million cases vs. 28.7 million cases in FY13
EBITDA for the quarter stood at Rs 116.6 crore registering de-growth of 46% YoY. The decline in EBITDA was on account of a contraction in the EBITDA margin by ~548 bps YoY to 6.1%
United Spirits (USL) reported a net loss of Rs 5380.1 crore in Q4FY14 vs. profit of Rs 56 crore in Q4FY13. The loss of ~Rs 4321.6 crore was due to discontinuing of operations of Whyte & Mackay along with provisions for doubtful debts/advances to the tune of Rs 1012.8 crore
"With Diageo at the helm, we believe USL will go through a significant transformation and shift from volume to value growth at a more rapid pace. Also, its strategy of premiumisation and de-leveraging of the balance sheet remains firmly in place. Consequently, we have segregated DCF into three phases to capture the transformation and subsequent accrued benefits of transition. We arrive at a fair price of Rs 2950 for USL and maintain BUY recommendation on the stock", says ICICIdirect.com research report.
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