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United Breweries gains after strong Q1 earnings

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Capital Market
Last Updated : Aug 16 2013 | 11:57 PM IST

United Breweries rose 1.08% to Rs 766 at 9:18 IST on BSE after net profit rose 22.6% to Rs 120.96 crore on 9.9% growth in net sales to Rs 1208.33 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced after market hours on Wednesday, 14 August 2013. The stock market was closed on Thursday, 15 August 2013 on account of Independence Day.

Meanwhile, the S&P BSE Sensex was down 56.64 points or 0.29% at 19,310.95.

On BSE, 1,257 shares were traded in the counter as against average daily volume of 1.24 lakh shares over the past one quarter.

The stock hit a high of Rs 767.40 and a low of Rs 755 so far during the day. The stock had hit record high of Rs 1,023.30 on 5 December 2012. The stock had hit a 52-week low of Rs 531.25 on 24 August 2012.

The stock underperformed the market over the past one month till 14 August 2013, declining 7.13% compared with the Sensex's 2.96% fall. The scrip had however, outperformed the market in past one quarter, rising 2.25% as against Sensex's 1.8% fall.

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The large-cap company has equity capital of Rs 27.29 crore. Face value per share is Re 1.

The company's profit before tax (PBT) surged 25% to Rs 183.70 crore in Q1 June 2013 over Q1 June 2012.

United Breweries (UBL) said it has posted volume growth in key markets resulting in revenue growing ahead of volume. The double digit volume growth in Delhi, Rajasthan, Punjab, Orissa and Uttar Pradesh resulted in market share gains, the company said.

The quarter also witnessed good growth in Andhra Pradesh & Karnataka markets that constitute a large share of the industry, UBL said in a statement.

UBL said that the volumes in Tamil Nadu continue to be affected by the unfavorable ordering pattern of TASMAC resulting in a national volume growth of 1.5% against and industry growth of 3%. The performance during the quarter in markets excluding Tamil Nadu resulted in a volume growth of 7% and a market share gain of almost 80 basis points, UBL said.

UBL said that the company took price increases in select markets that helped in off-setting input price increases in an inflationary economy. Excise rules in Maharashtra resulted in the company using new bottles for 100% of the production in the state leading to further cost pressure, the company said.

UBL said that cost pressures are expected to continue over the balance period of FY 2014 with modest industry growth.

The major brown-field expansion undertaken at Aurangabad has been completed. Land acquisition for the new Greenfield project in Bihar has also been completed, UBL said in a statement.

United Breweries is the flagship company of UB Group. With its flagship brand Kingfisher, the company is market leader in beers in India.

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First Published: Aug 16 2013 | 9:20 AM IST

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