United Spirits Q3 Results | Net profit tops estimates with 64% surge, net sales up 8%

At the operating level, EBITDA jumped 30.8% to ₹486.5 crore in the third quarter of this fiscal over ₹371.8 crore in the corresponding period in the previous fiscal. CNBC-TV18 poll had predicted an EBITDA of ₹429 crore for the quarter under review.

The EBITDA margin stood at 16.2% in the reporting quarter against 13.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 14.4% for the quarter under review.

The consolidated net sales stood at ₹3,002 crore, up 8% year-on-year, in line with growth in the standalone business. The standalone net sales, at ₹2,989 crore, increased 7.5% year-on-year driven by continued premiumisation, and resilient consumer demand.

Within the above, the 'prestige and above' segment grew 10%. The net sales for the 'popular' segment declined 12.4%, primarily due to muted demand. Duty increases in the segment’s salient state further impacted demand adversely. The gross margin was 43.4%, up 286 bps versus last year, however, it was flat versus the last quarter.

The exceptional gain of ₹14 crore is on account of ₹31 crore income from the slump sale, recognised as exceptional in Q2 of FY24 after the completion of customary post-transaction closure obligations partially offset by a charge of ₹17 crore related to the supply agility programme in Q1 of FY24.

The results came after the close of the market hours. Shares of United Spirits Ltd ended at ₹1,107.85, down by ₹0.80, or 0.072%, on the BSE.