United Spirits Limited, also known as USL is the second largest alcoholic beverages company by volume in the world. It is a part of Diageo and its headquarters is located in Bangalore.
United Spirits Market Capitalisation
The market capitalisation of united Spirits is approximately Rs.48,100 crore
Company’s Wealth and Recent Performance
United Spirits Q1 FY19 Results
- The revenue for the quarter ending 30 June 2018, the company reported a jump of 12.9% year-on-year to stand at Rs.2,011.9 crore. The gross margin for the said quarter rose by 313bps year-on-year to stand at 49.1%.
- The EBITDA grew by 22.2% year-on-year to stand at Rs.192.3 crore, while its margin increased by 72bps to 9.6%.
- The company Profit After Tax (PAT) stood at Rs.81.3 crore growing by 29.3% year-on-year.
- The growth in revenue is attributed to the stable operating environment and benefit from overtaking the impact of the highway ban last year.
- The net sales of Prestige & Above segment inclined by 19% year-on-year, while the Popular segment’s revenue was down by 3% year-on-year attributed to the changes in its operating model.
United Spirits FY 2017-18 Annual Report
- The company’s net sales or income from operations declined by 4% for the said financial year stood at Rs.8,170.1 crore as against Rs.8,547.6 crore reported during the previous financial year.
- Revenue from operations stood at Rs.26,069.1 crore compared to Rs.25,398.8 crore.
- Its Profit After Tax (PAT) rose from Rs.169.9 crore to Rs.561.7 crore for the FY 2017-18.
- Earnings Per Share stood at Rs.38.65 compared to Rs.11.69 during the previous fiscal.
- The EBITDA for the said financial year stood at Rs.1,021.5 crore for the company.
United Spirits Q4 FY18 Results
- United Spirits reported its revenue grew by 7.3% year-on-year to stand at Rs.2,173.7 crore, while the gross margin for the said period inclined by 461bps year-on-year to 48.8%.
- However, the EBITDA stented the growth at 5.1% year-on-year to stand at Rs.274.1 crore, the EBITDA margin declined marginally by 27bps to 12.6%.
- The PAT of the company stood at Rs.211 crore as compared to a loss of Rs.104.2 crore reported during the period last fiscal.
- Its adjusted PAT dropped by 6.6% year-on-year to stand at Rs.174.2 crore.
United Spirits Q3 FY18 Results
- United Spirits experienced a 9% decline in profit for Q3 FY18 to Rs.135 crore. This was said to be the repercussions of marketing expenses. The profit in Q2 FY18 stoo at Rs.153 crore
- The net sales of the company too took a hit as it declined by 2% in Q3 of FY18
- However, the company witnessed a 1% year on year increase in revenue. The revenue of Q3 FY18 stood at approximately Rs.7,100 crore
- When compared to Q2, the net sales of United Spirits increased to roughly Rs.2200 crore. In Q2 of FY18, the net sales stood at Rs.1951 crore
United Spirits stock trends in 2018
- The stock price of USL stood at around Rs.3,690 in the beginning of January 2018. The stock price then peaked to Rs.3,739 in a few days, after which it went downhill for the month. At the end of January 2018, the stock price amounted to, roughly, Rs.3,280
- The beginning of February was a bit of a low for the company as it hit almost Rs.3,000 in only a few days into the month. This proved to be the lowest price the stock had hit that month. By the end of February, the stock price picked up and amounted to Rs.3,277 on 28th February
- The scrip lost more than 9 points on the 1st of March to be valued at Rs.648.97 at the end of the day and declined even further to touch Rs.595.65 on the 9th before growing marginally to end the month at Rs.625.93.
- When the market opened for trading on the 2nd of April, the stock gained more than 27 points to end the day at Rs.653.30 and rose significantly over the course of the month to touch Rs.724.44 on the last day of the month.
- With an upward rally in the month of April, the stock opened at Rs.717.20 on the 2nd of May; however, it dropped considerably during this month when the scrip touched Rs.624 on the 21st. By the end of the month, the scrip gained slightly to close at Rs.668.72.
- On the 1st of June, the stock price of the company stood at Rs.652.15 and remained steady over the course of the month to end more than 10 points at Rs.664.95.
- The scrip lost about 14 points on the 2nd of July to stand at Rs.650.40 and lost further points to touch Rs.557.40 on the 18th before moving upwards slightly to end the month at Rs.587.05.
- The stock gained about 5 points on the 1st of August to end the day at Rs.592.85 and gradually inclined over the course of the month to close at Rs.630.25
United Spirits stock trends in 2016 – 2017
- The stock price of USL started of 2016 at almost Rs.3,000, one of the highest price the company had witnessed that month. The price of the stocks at the end of that month was recorder at approximately Rs.2,600. February 2016 started off with the stock price standing at roughly Rs.2,500. The stock price were at its highest for the month during the end of February when it stood at Rs.2,770
- The price then experienced a steep decline into the month of April when it hit Rs.2,300 just a few days into the month. The month had its ups and downs and eventually the stock price stood at roughly Rs.2,300 at the end of the month
- During the beginning of August, the stock price stood at almost Rs.2,500. The stock price for the month were virtually stagnant as it ended the month at a little over Rs.2,300
- December was the worst month of 2016 for USL as the stock price was at its lowest then. Starting off the month at only a little over Rs.1,900, the price failed to escalated during the month and also hit the lowest point of the year on the 27th when the price at only Rs.1,839. The price of the stock at the end of 2016 stood at roughly Rs.1,860
- Starting of 2017 at almost Rs.1,950, the stock price of USL ascended steeply by the end of January 2017 and amounted to almost Rs.2,250. This was also one of the highest price of the month. February 2017 started off well for the company with the stock price standing at 2,170. The stock price rose to around Rs.2,400 during the month and eventually ended at almost Rs.2,300
- The stock price dipped slightly in the month of April when it stood at a little above Rs.2,050 at the beginning of the month. The stock price dipped further as the month progressed and stood at around Rs.1,850 only by the end of the month
- The stock price then managed to rise over the coming months and in the beginning of August, it stood at a little over Rs.2,500. The stock price then stagnated throughout the month and ended the month at around the same price as it started off with, Rs.2,500
- December 2017 was the best month of the year for USL. The stock price stood at around Rs.3,300. The stock price then steadily increased during the month and ended the year at a price of a little more than Rs.3,650, which was also the highest price of the stock for the month and the year
Why should you invest in United Spirits?
- USL is the largest alcohol company in India and the second largest in the world
- The performance of the company has been steady for the last few years, therefore, it is very unlikely that is will perform badly in the coming years
- Alcohol as an industry in general has a high demand all year round, minimising any unforeseen losses
- The company has experienced good growth in the past few years and is expected to do so in the coming years as well
United Spirits Limited (USL) is India’s largest and the world’s second largest alcoholic company. Headquartered in Bangalore, USL exports alcohol to over 35 countries worldwide. Owning over 140 brands of liquor, USL owns some of the most renowned alcohol brands in the world. Some of the brands that they own are Bagpiper, McDowells VSOP, Romanov, White Mischief, Signature, Blue Riband, and Royal Challenge.
History of United Spirits
United Spirits was originally founded as McDowell and Company (also known as McDowell's) in 1928 by Angus McDowell. The company initially imported several consumer goods, tobacco, and alcohol in order to serve the British located in India. The initial capital of the company was Rs.8 lakh, as 4,000 common shares and 4,000 preferred shares of Rs.100 each.
In 1951, United Breweries, run by Vittal Mallya, purchased McDowell and established its first distillery, and was the first Indian company to produce IMFL (Indian Made Foreign Liquor). The company then launched several alcoholic beverages, and in 1968, they launched McDowell’s No.1 whiskey. In 1973, the company acquired Herbertsons, and Vijay Mallya, Vittal Mallya’s son, took over the company the same year.
In 2006, McDowell and Co Limited, along with several other companies amalgamated to form United Spirits Limited (USL). Post this USL acquired several other companies such as Liquidity Inc., manufacturers of Pinky Vodka.
In 2013, Diageo, the largest distiller in the world acquired a 10% stake in USL, and kept acquiring more stake until they owned 54.8% of USL by 2014.
Management of United Spirits
Abanti Sankaranarayanan - Business Head
Abhay Kewadkar - Senior Vice President
Ajay Baliga - Executive Vice President
Amrit Thomas - President & Chief Marketing Officer
Anand Kripalu - CEO
Anand Kripalu - Managing Director & CEO
D Sivanandhan - Independent Director
Debasis Chaudhuri - Senior General Manager - Finance
United Spirits listings and Indices
United Spirits stocks are listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and can be traded on these platforms. The company forms a part of the following indices Nifty 100, Nifty 200, Nifty 500, Nifty Alpha 50, S&P BSE Dollex – 100, amongst other indices.
BSE code - 532432
NSE code - MCDOWELL-N
ISIN - INE854D01016
Sector - BREWERIES & DISTILLERIES
United Spirits Ltd. (A Diageo Group Company)
# 24, Vittal Mallya Road,
Bangalore - 560 001.
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