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United Spirits spurts after Q2 earnings

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Capital Market
Last Updated : Oct 27 2017 | 11:47 AM IST

United Spirits rose 15.08% to Rs 2,963.50 at 11:37 IST on BSE after net profit rose 85.6% to Rs 153.10 crore on 3.7% decline in net sales to Rs 1951.30 crore in Q2 September 2017 over Q2 September 2016.

The result was announced after market hours yesterday, 26 October 2017.

Meanwhile, the S&P BSE Sensex was up 39.88 points, or 0.12% to 33,187.01.

On the BSE, 3.32 lakh shares were traded in the counter so far, compared with average daily volumes of 29,462 shares in the past one quarter. The stock had hit a high of Rs 2,999.90 and a low of Rs 2,708.05 so far during the day. The stock hit a 52-week high of Rs 2,999.90 on 27 October 2017. The stock hit a 52-week low of Rs 1,775.05 on 22 November 2016.

The stock had outperformed the market over the past one month till 26 October 2017, rising 7.02% compared with 6.38% rise in the Sensex. The scrip had underperformed the market in past one quarter, rising 0.74% as against Sensex's 2.59% rise. The scrip had also underperformed the market in past one year, rising 13.17% as against Sensex's 18.74% rise.

The large-cap company has equity capital of Rs 145.33 crore. Face value per share is Rs 10.

Anand Kripalu, CEO, said that in the second quarter the company has delivered strong underlying net sales growth of 4% driven by 12% growth in the Prestige & Above segment, despite the impact of the highway ban. Additionally, it has delivered expanded margins despite the impact of Goods and Services Tax (GST).

With the recent Supreme Court clarification on the highway ban, outlets were seen re-opening in September and the impact of the highway ban is expected to continue to decrease and the business to normalize by end of the third quarter. The company expects the net adverse impact of GST on its margins to be moderate in this financial year.

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The company continues to focus on its strategic priorities to capture the long term opportunity in the spirits market and achieve its medium term ambition to grow top line by double digit and improve margins to mid-high teens.

United Spirits is a spirits company engaged in the business of manufacture and sale of alcoholic beverages.

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First Published: Oct 27 2017 | 11:36 AM IST

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