The liquor maker reported a standalone net profit of Rs 167.30 crore in Q4 FY21, steeply higher than net profit of Rs 23.90 crore in Q4 FY20.
Net sales during the quarter increased 11.6% YoY to Rs 2224.40 crore, driven by continued off-trade momentum and weaker comparatives, offset by contraction of owned business in Andhra Pradesh (AP) and softer footfalls in on-trade channel.
Total sales volume rose 8.1% to 19.7 EUm (Equivalent Units in millions) in Q4 FY21 from 18.3 EUm reported in Q4 FY20. On the segmental front, prestige & above segment witnessed 19.4% jump in volumes to 10 EUm while the popular segment's volumes contracted 1.5% to 9.7 EUm in Q4 FY21 over Q4 FY20.
Prestige & Above segment net sales grew 25.8% benefitting from a strong scotch demand and weak comparatives. Popular segment net sales declined 3.1%, led by a decline of 4.3% in priority states. West Bengal sales saw a steep decline due to high taxes imposed.
Reported EBITDA was Rs 412 crore, up 51.8%. Reported EBITDA margin was 18.5%, up 491 bps, driven by gross margin enhancement; lower advertising and promotional spends during the quarter and on-going cost optimisation measures.
Profit before tax in Q4 FY21 stood at Rs 247 crore, up by 53.4% from Rs 161 crore in Q4 FY20. Total tax outgo declined 41.9% to Rs 79.70 crore in the fourth quarter as compared to the same period last year.
On a consolidated basis, the company reported a net profit of Rs 208.70 crore in Q4 FY21 as compared with a net profit of Rs 58.40 crore in Q4 FY20. Net sales rose 12.1% YoY to Rs 2230.40 crore in the fourth quarter.
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The company reported 41.8% drop in consolidated net profit to Rs 383.60 crore on 12.8% decline in net sales to Rs 8131.30 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
Anand Kripalu, CEO, said: "We continue to deliver consistently solid cash flow with net cash from operating activities at Rs 1,728 crore. Debt at the end of this fiscal stood reduced to Rs 556 crore, a reduction of Rs 1517 crore from last fiscal end.
Our recently announced strategic review of selected Popular brands is progressing well and on track.
The medium and long-term growth drivers and opportunities for our business remain intact. We will continue to drive profitable growth and focus on strengthening the core brands."
Closing net debt was Rs 556 crore, a reduction of 73% versus last year. Debt reduction of Rs 1,517 crore is primarily due to free cash flow generated from business and improvement in working capital.
United Spirits manufactures and distributes a variety of alcohols and spirits, including whiskey, brandy and rum. The company also manufactures Indian-made foreign liquor brands.
The scrip shed 0.05% to end at Rs 572 on the BSE.
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