Q1 results: United Spirits high on strong margin gains, stock falls 1.6%

Operating efficiency to drive profitability, but there are some near-term headwinds

United Spirits' June quarter (Q1) results, announced on Monday after market hours, were above expectations with standalone net sales growing 10.4 per cent year-on-year (YoY) to Rs 2,218 crore and net profit rising by over two times to Rs 197.4 crore. According to the Bloomberg Consensus, analysts had pegged these numbers at Rs 2,152 crore and Rs 120.2 crore, respectively.

The stock, however, fell 1.6 per cent to Rs 589.4 on Tuesday due to the weak sentiment in the market and profit-booking, given it has outperformed the Sensex in the past three months.

Though dry days and restrictions on keeping