USL rallies 16% on upbeat Q2 numbers
The largest domestic liquor firm, which is now controlled by Diageo, reported 3 per cent year on year rise in its total income for the quarter at Rs 6,245 crore.
By ETMarkets.com | Updated:
NEW DELHI: Shares of United Spirits (USL) rallied 16 per cent in Friday's trade after the company reported a 86 per cent YoY jump in net profit at Rs 153 crore for September quarter led by higher sales of premium brands and exceptional gains.
The largest domestic liquor firm, which is now controlled by Diageo, reported 3 per cent year on year rise in its total income for the quarter at Rs 6,245 crore.
The stock rose 15.91 per cent to hit a high of Rs 2,985 on BSE.
Prestige and above segment, which represents 63 per cent of net sales saw 10 per cent growth while popular segment's sales declined 22 per cent impacted by the one off impact of operating model changes, the ET reported.
"With the recent Supreme Court clarification on the highway ban, we have seen outlets start to re-open in September and we expect the impact of the highway ban to continue to decrease and the business to normalize by end of the third quarter," said Anand Kripalu, CEO at USL.
Gross margins improved by 559 bps driven mainly by price increases, productivity initiatives and operating model changes, the ET report said.
The largest domestic liquor firm, which is now controlled by Diageo, reported 3 per cent year on year rise in its total income for the quarter at Rs 6,245 crore.
The stock rose 15.91 per cent to hit a high of Rs 2,985 on BSE.
Prestige and above segment, which represents 63 per cent of net sales saw 10 per cent growth while popular segment's sales declined 22 per cent impacted by the one off impact of operating model changes, the ET reported.
"With the recent Supreme Court clarification on the highway ban, we have seen outlets start to re-open in September and we expect the impact of the highway ban to continue to decrease and the business to normalize by end of the third quarter," said Anand Kripalu, CEO at USL.
Gross margins improved by 559 bps driven mainly by price increases, productivity initiatives and operating model changes, the ET report said.
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