Last Updated : Jul 25, 2016 01:00 PM IST | Source: CNBC-TV18

United Spirits Q1 net seen up 2-fold, volume growth may improve

Analysts say volume growth is expected to be 5.5 percent against 0.4 percent in year-ago period and negative 4 percent in preceding period.

 
 
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Alcoholic beverages company United Spirits' first quarter (April-June) profit is seen doubling to Rs 40.5 crore compared with Rs 20 crore in same period last year, according to average of estimates of analysts polled by CNBC-TV18. It will announce earnings on July 26.


Revenue is likely to increase 12 percent to Rs 2,245 crore in the quarter ended June 2016 from Rs 2,005 crore in year-ago period.


Analysts say volume growth is expected to be 5.5 percent against 0.4 percent in year-ago period and negative 4 percent in preceding period.

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Reversal of prohibition measures in Kerala post state election and resolution of some regulatory issues in smaller states may support volume growth for the quarter.


Prestige portfolio volume growth is likely to be 10 percent during the quarter against 9.6 percent in Q4FY16 and addition of Diageo portfolio may also aid revenue growth.


Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is expected to jump 16 percent to Rs 233.2 crore and margin may expand 40 basis points to 10.4 percent on yearly basis.


Margin may be supported by price hike by Karnataka government which is a big consumption state.

The management had guided earlier that near term margin expansion will remain muted on higher brand and marketing spend.

First Published on Jul 25, 2016 01:00 pm
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