United Spirits Ltd's Q3FY25 Quarterly Results

Result Summary

• United Spirits Ltd reported a 20.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 14.8%.
• Its expenses for the quarter were up by 21.4% QoQ and 14.0% YoY.
• The net profit decreased 1.8% QoQ and decreased 4.3% YoY.
• The earnings per share (EPS) of United Spirits Ltd stood at 4.7 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

United Spirits Ltd, a prominent entity in the alcoholic beverages industry, is known for its wide array of spirit brands, including whisky, vodka, and rum. Operating primarily in India, the company holds a significant market share and is part of the global beverage conglomerate, Diageo. With a focus on premiumization, United Spirits has been investing in its premium and prestige portfolio, which aligns with the growing consumer preference for premium brands in India. Recent developments include strategic marketing campaigns and product launches aimed at expanding their reach and enhancing brand equity. However, specific details on recent acquisitions or strategic shifts were not provided in the available data.

Revenue

In Q3FY25, United Spirits Ltd reported a total income of ₹3,505 crores, marking a substantial increase from the previous quarter, where total income stood at ₹2,898 crores. This quarter-over-quarter increase of 20.9% also reflects a year-over-year growth of 14.8% compared to Q3FY24's total income of ₹3,054.20 crores. The significant growth in total income over both periods indicates robust performance in revenue generation, potentially driven by increased demand and successful implementation of strategic initiatives in the marketplace.

Profitability

The company's profitability, as indicated by the profit before tax, reached ₹483 crores in Q3FY25, showing a moderate increase of 4.5% from ₹462 crores in Q2FY25. On a year-over-year basis, there was a similar growth pattern with a 5.1% increase from ₹459.40 crores in Q3FY24. However, profit after tax decreased slightly to ₹335 crores in Q3FY25 from ₹341 crores in Q2FY25, and a more notable drop from ₹350.20 crores in Q3FY24, with a year-over-year decline of 4.3%. This decrease in post-tax profits despite pre-tax growth can be attributed to a significant increase in tax expenses, which rose by 21.8% compared to the previous quarter and by 32.9% year-over-year.

Operating Metrics

The earnings per share (EPS) for United Spirits Ltd in Q3FY25 was ₹4.70, reflecting a slight decrease from ₹4.80 in Q2FY25 and ₹4.90 in Q3FY24. This translates to a quarter-over-quarter decline of 2.1% and a year-over-year decline of 4.1%. The company's total expenses for the quarter were ₹2,957 crores, up from ₹2,436 crores in Q2FY25, representing a 21.4% increase, and showing a year-over-year increase of 14% from ₹2,594.80 crores in Q3FY24. The rise in expenses could be indicative of increased operational costs or strategic investments in business expansion and marketing, impacting the net profit margins and EPS.