United Spirits, the largest spirits company in the world by volume, is expected to report profit at Rs 130.9 crore in July-September quarter against adjusted profit Rs 129.9 crore in a year-ago period.
The actual profit in the year-ago period was Rs 929.3 crore, which boosted largely by exceptional item of Rs 799.4 crore.
Revenue during the quarter is seen rising 11 percent to Rs 2,381 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.
Analysts expect overall volume growth of 4 percent, driven by 14 percent growth in prestige segment while regular segment is likely to decline 1 percent due to prohibition in states like Bihar. Sales from Diageo brand is expected to contribute Rs 200 crore, a growth of 40 percent YoY.
Operating profit is seen falling to Rs 315 crore from Rs 318 crore and margin may contract by 160 basis points to 13.2 percent YoY.
In Q1FY17, margin was hit by higher overhead costs and additional tax levies. Despite price increases in Karnataka and Punjab, significant challenges exist on pricing, feel analysts.
The stock fell 35 percent in last 12 months as Diageo's strategy has not yielded results yet.
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