United Spirits Q3 PAT seen down 9% to Rs 118.4 cr

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