United Breweries fell 3.55% to Rs 784.70 at 11:10 IST on BSE after net profit fell 87.1% to Rs 6.73 crore on 8.2% decline in net sales to Rs 1112.70 crore in Q4 March 2017 over Q4 March 2016.
The result was announced after market hours yesterday, 17 May 2017.Meanwhile, the S&P BSE Sensex was down 160.81 points, or 0.52% to 30,497.96.
On the BSE, 42,000 shares were traded in the counter so far, compared with average daily volumes of 33,547 shares in the past one quarter. The stock had hit a high of Rs 805.45 and a low of Rs 773 so far during the day. The stock hit a 52-week high of Rs 975.50 on 7 October 2016. The stock hit a 52-week low of Rs 690 on 24 May 2016.
The stock had outperformed the market over the past one month till 17 May 2017, rising 10.24% compared with 4.57% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.93% as against Sensex's 8.33% rise.
The large-cap company has equity capital of Rs 26.44 crore. Face value per share is Re 1.
United Breweries (UBL)'s net profit fell 23% to Rs 229.33 crore on 2.2% decline in net sales to Rs 4734.12 crore in the year ended March 2017 over the year ended March 2016.
For the full year ended March 2017, the beer industry saw lower volume as a result of steep duty increases in multiple states, the impact of demonetization and the impact of the anticipated cancellation of liquor licenses within 500 meters of national and state highways from 1 April 2017. UBL volume declined 2.5% which compared with the industry fall of 5%. UBL's net sales revenue declined in line with volume.
For the year, UBL gained market share in North, South and the'East, whilst it held market share in the West. In the North, UBL saw significant volume growth in Delhi, Haryana and Uttaranchal markets. Growth in the South was driven by Andhra Pradesh and Telangana where UBL gained market share, however Karnataka saw a drop in volume with UBL holding market share. In Tamil Nadu supplies resumed in March 2017, after having received no orders from State Corporation TASMAC for about 6 months. Growth in the East was driven by West Bengal, Orissa and Jharkhand, however prohibition in Bihar resulted in a complete stoppage of the industry during the year. In the West, the industry declined across markets with UBL holding shares.
The Supreme Court order directing all outlets within 500 metres of highways to close from the 1 April 2017 had a significant impact on the industry in Q4 March 2017. The industry saw a decline of about 13%.
The company said it expects the impact of this ban to be most significant in the first two quarters of this fiscal year. The magnitude of the impact on sales volume will depend on the extent of potential mitigating actions by state governments, including the options offered to outlets to relocate to an alternative location or efforts to denotify certain state highways, which remains uncertain, the company said.
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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