United Spirits reports 29 per cent growth in PAT

United Spirits reported its first quarter result of the fiscal year 2019, on Monday. The company’s net sales in the quarter rose 13 per cent from the corresponding quarter of last year to Rs. 2,012 crore.

The quarterly comparison benefited from the effects of highway ban in the same period last year and was aided by the improved performance in the Prestige and Above segment. The company’s net sales from this segment reported growth of 19 per cent. 

For Q1FY19, reported EBITDA increased 22 per cent yoy to Rs. 192 crore with the corresponding margin expansion of 72 bps. EBITDA margin for the Q1FY19 stood at 9.6 per cent during the period. Net profit surged 29 per cent yoy to Rs. 81 crore. This was driven by 20 per cent lower interest cost in the quarter.

Looking forward, the company will continue to focus on premiumisation, strengthening brands and increasing productivity. The company’s management is confident of capturing further market share given its leadership position. The company's medium-term ambition is to deliver double-digit topline growth and improve margins to mid-high teens, commented Anand Kripalu, CEO of United Spirits.