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Share the post "United Spirits ‘s Q2 Report: Revenue Falls by 0.96% YoY"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -0.96 % over the year, substantial increase in net sales/revenue by 6.96 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -23.73 %, Marginal increase in other income during this quarter, up by 54.29%.
- Profit over the Year and quarter: Significant improvement in profitability for United Spirits Limited. Notable increase of 0.5 % in net profit Year to Year, United Spirits Limited’s profitability dropped by -29.69 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 0.42 % Year to Year. EPS decreased by -29.72 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 6736.5 Cr | Rs. 6238 Cr | Rs. 6672 Cr | + 6.96 % | -0.96 % |
| Expenses | Rs. 6270.2 Cr | Rs. 5525 Cr | Rs. 6172 Cr | + 11.71 % | -1.57 % |
| Operating Profit | Rs. 466.3 Cr | Rs. 713 Cr | Rs. 500 Cr | -29.87 % | + 7.23 % |
| OPM % | 6.92 % | 11.43 % | 7.49 % | -3.94 % | + 0.57 % |
| Other Income | Rs. 70.8 Cr | Rs. 35 Cr | Rs. 54 Cr | + 54.29 % | -23.73 % |
| Interest | Rs. 26.2 Cr | Rs. 22 Cr | Rs. 25 Cr | + 13.64 % | -4.58 % |
| Depreciation | Rs. 65.3 Cr | Rs. 72 Cr | Rs. 69 Cr | -4.17 % | + 5.67 % |
| Profit before tax | Rs. 445.6 Cr | Rs. 654 Cr | Rs. 460 Cr | -29.66 % | + 3.23 % |
| Tax % | 23.83 % | 25.69 % | 25.76 % | + 0.07 % | + 1.93 % |
| Net Profit | Rs. 339.3 Cr | Rs. 485 Cr | Rs. 341 Cr | -29.69 % | + 0.5 % |
| EPS in Rs | Rs. 4.78 | Rs. 6.83 | Rs. 4.8 | -29.72 % | + 0.42 % |
Today, we’re looking at United Spirits Limited’s financial performance for the Q2(Sep 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -0.96 %. However, it did see a marginal increase of 6.96 % from the previous quarter. Expenses ticked up slightly by 11.71 % quarter-on-quarter, aligning with the annual decline of -1.57 %. Operating profit, while up 7.23 % compared to last year, faced a quarter-on-quarter dip of -29.87 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.57 %, but a shrinkage of -3.94 % sequentially. Other income rose by 54.29 % compared to the last quarter, despite an annual decline of -23.73 %. Interest expenses surged remarkably by 13.64 % from the previous quarter, yet the year-over-year decrease remains at a moderate -4.58 %. Depreciation costs fell by -4.17 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 5.67 %. Profit before tax grew annually by 3.23 % but saw a reduction from the preceding quarter by -29.66 %.
Tax expenses as a percentage of profits increased slightly by 1.93 % compared to last year, with a more notable quarter-on-quarter increase of 0.07 %. Net profit rose by 0.5 % year-on-year but witnessed a -29.69 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 0.42 % but a quarterly fall of -29.72 %. In summary, United Spirits Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 6736.5 Cr | Rs. 6238 Cr | Rs. 6672 Cr | + 6.96 % | -0.96 % |
| Expenses | Rs. 6270.2 Cr | Rs. 5525 Cr | Rs. 6172 Cr | + 11.71 % | -1.57 % |
| Operating Profit | Rs. 466.3 Cr | Rs. 713 Cr | Rs. 500 Cr | -29.87 % | + 7.23 % |
| Net Profit | Rs. 339.3 Cr | Rs. 485 Cr | Rs. 341 Cr | -29.69 % | + 0.5 % |
| EPS in Rs | Rs. 4.78 | Rs. 6.83 | Rs. 4.8 | -29.72 % | + 0.42 % |
In reviewing United Spirits Limited’s 2024(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -0.96 % year-on-year, however, there was a minor increase of 6.96 % from the previous quarter. Expenses decreased by -1.57 % compared to the previous year, with a 11.71 % increase quarter-on-quarter. Operating Profit surged by 7.23 % annually, and saw a -29.87 % decrease from the last quarter.
Net Profit showed yearly increase of 0.5 %, and experienced a -29.69 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 0.42 % annually, however dipped by -29.72 % compared to the last quarter. In essence, while United Spirits Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
48
3-Year Profit
14
5-Year Profit
13
10-Year Profit
1,460
Current Price
1,06,226
Market Cap
The company associated with BSE code 532432 presents a financial narrative of mixed fortunes. Over a five-year period, the company achieved a profit of 14 percents, which subsequently rose to 48 percents over the three years that followed. Yet, despite this initial growth, the company now faces a troubling trailing twelve-month (TTM) profit loss of 39 percents. What’s particularly striking is the company’s complete absence of reported sales across all analyzed periods, which brings into question the viability of its revenue generation strategies and long-term business sustainability. Moreover, stock prices have been highly volatile, reflecting the company’s uncertain future. While the stock was valued at 19 percents over the last five years, it has recently dropped to 41 percents, underscoring a rapid decline in market confidence. Over the longer ten-year period, the stock price was at 10 percents, illustrating a pattern of fluctuating performance that could pose risks for potential investors.
Currently valued at ₹1,06,226 crore, the company's stock price stands at ₹1,460. Over the years, it has seen significant fluctuations, with its price ranging from ₹1,648 / 1,027, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 73.9, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹105, which represents the net asset value of the company per share. The dividend yield of 0.61% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 27.9%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 21.0%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.07, signaling conservative financial management. However, the net cash flow is negative at ₹937 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 8.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹214, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 14.0, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
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