United Spirits rallies 10% on improved EBITDA margins

The stock rallied 10% to Rs 2,305 on BSE in intra-day trade on back of heavy volumes.

United Spirits rallied 10% to Rs 2,305 on BSE in intra-day trade after the company said its Ebitda (earnings before interest, tax, depreciation and amortization) margin improved by 739 bps to 13.1% in March quarter (Q4FY17).

The company said margin improvement driven by increased gross profit margin, lower operating expenses and provision made in the same period last year.

The country’s largest liquor manufacturer United Spirits posted a net loss of Rs 104 crore in Q4FY17, on account of an “exceptional charge” of Rs 291 crore towards a customer claim arising out “legacy commercial terms. The company had