Liquor shares rally on good Q4 show; UBL, Radico Khaitan hit new high

Shares of liquor companies were in focus with frontline stocks like United Breweries (UBL), United Spirits and Radico Khaitan rallying between 5% and 7% on the BSE after reporting good set of numbers in the fourth quarter ended March 2018 (Q4FY18).

UBL (up 7% to Rs 1,258) and Radico Khaitan (up 7% at Rs 456) have hit their respective new highs on the BSE in intra-day trade on Friday.

In Q4FY18, UBL reported a standalone net profit of Rs 909 million against Rs 67 million in the corresponding quarter of previous fiscal. The company recorded a volume growth of 24% compared with industry growth of 22%.

“This growth was partly the result of a low comparative, as Q4 2016-17 already included the effects of the highway ban. Net revenue grew 32%, primarily due to volume growth and also a favourable state mix,” UBL said in a press release.

For the financial year 2017-18 (FY18), the beer industry grew by about 7% with UBL delivering 10% volume growth. This was the first double-digit volume growth since FY 2010-11 and resulted in market share gains.

For FY2018-19, in the absence of any large regulatory market disruptions, UBL expects continued mid-single digit industry volume growth. In order to meet consumer demand, the company is planning to increase its capital expenditure towards capacity expansion by about 50%, from the current capital investment level of approximately Rs 2,000 million, it added.

United Spirits too rallied 7% to Rs 3,337 on the BSE in early morning trade after the company reported a standalone net profit Rs 2,110 million in Q4FY18 against a net loss of Rs 1,042 million in the same quarter last fiscal.

Meanwhile, total 9 liquor companies so far announced their Q4FY18 results have reported a combined net profit of Rs 3,856 million against an aggregate net loss of Rs 808 million in previous year quarter.

UNITED BREWERIES 1246.15 1180.05 5.60
RADICO KHAITAN 451.00 427.30 5.55
PINCON SPIRIT 18.95 18.05 4.99
UNITED SPIRITS 3265.00 3122.05 4.58
TILAKNAGAR INDS. 20.10 19.40 3.61
SOM DISTILLERIES 262.25 254.40 3.09
GLOBUS SPIRITS 132.60 129.40 2.47
ASSOC.ALCOHOLS 411.00 404.70 1.56
PIONEER DISTIL. 259.00 257.50 0.58

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