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United Spirits Q3 PAT seen down 9% to Rs 118.4 cr
United Spirits, a largest spirits company in India and among the top 3 spirits companies in the world, is expected to report a profit after tax of Rs 118.4 crore in the third quarter of FY12, degrowth of 9% as compared to Rs 130 crore in a year ago period.
United Spirits , a largest spirits company in India and among the top 3 spirits companies in the world, is expected to report a profit after tax of Rs 118.4 crore in the third quarter of FY12, degrowth of 9% as compared to Rs 130 crore in a year ago period.
Revenues are seen going up by 12.6% to Rs 2,207 crore versus Rs 1,960 crore during the same period.
EBITDA is likely to go up 13.6% to Rs 313 crore from Rs 276 crore and operating profit margin is expected to be at 14.2% versus 14.1% YoY and 14.3% QoQ.
On quarter-on-quarter basis, company's revenues are seen going up by 23.3% and EBITDA seen up 22.4% while PAT is likely to fall 20%.
Watch out for:
Volume growth range of 6 to 10% and within that premium segment to grow at a faster clip >Q2FY12 volume growth of 8% to 28.7 million cases and top brands grew 17%
Higher ENA (Extra Neutral Alcohol) + glass prices and brand investments to pressure margins >Q2FY12 total raw material costs rose 44% to Rs 1040 crore >Watch for lower advertisement spends to offset higher input costs
Last quarter, advertising and sales promotion expenses fell 209 bps to 9.4% of sales and manufacturing expenses down 84 bps to 12.1%
ENA prices were estimated at Rs 162/case vs Rs 143/case YoY and Rs 153/case QoQ
Delayed crushing UP caused ENA prices to increase
Interest costs remain a key monitorable that will drag profitability
Tax rates to be higher by 170 bps hence a PAT decline
