United Spirits has posted a net loss at Rs 1,799.3 crore versus a profit of Rs 74.7 crore quarter-on-quarter
United Spirits has posted a net loss at Rs 1,799.3 crore in the March quarter versus a profit of Rs 74.7 crore quarter-on-quarter (QoQ). Quarterly income stood at Rs 2,051.3 crore against Rs 2,177.2 crore last quarter.
Gaurang Shah, VP of retail financial services provider Geojit BNP Paribas is bullish on the stock despite its recent gains.
He told CNBC-TV18 that this was one of the leading spirit companies in the high spirit segment with a huge market share and product profile with shelf visibility.
“By virtue of Diageo coming in, I think there is going to be an incremental positivity that will emerge”, he said.
Below is the transcript of Gaurang Shah's interview with Reema Tendulkar and Sonia Shenoy on CNBC-TV18.
Sonia: What would your initial take be on the earnings?
A: I think it is a clean up process which is underway given the fact that you had an earlier management which had a lot of confusion and chaos that persisted on the balance sheet and with Diageo coming in, there is going to be an incremental clarity that will come through.
So I guess this is a painful period that the company will go through in terms of quarter-on-quarter (Q-o-Q) numbers but the kind of product profile market share, which already existed with United Spirits and by the virtue of Diageo coming in, I think there is going to be an incremental positivity that will emerge.
Of course not to mention in the high spirit segment, this is one of the leading spirit companies with a great amount of market share and product profile with self visibility and the stock also has been outperforming for quite some time.
So you might see some pressure on fallback on these numbers but the clean-up process is underway and this will be healthy over a period of time in terms of the changing of the outlook of the company is concerned. So I guess any pressure on the downside from a long-term point of view, you should definitely look at buying it and exceptional losses will not reoccur in the quarters to come by.
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