UBL gains 5% on the back of strong Q3 results!

UBL gains 5% on the back of strong Q3 results!

by 5paisa Research Team Last Updated: Dec 11, 2022 - 03:10 pm 38.8k Views
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Marketing spend has worked well for demand recovery for its products.

United Beverages Ltd (UBL) has been trending on Dalal Street today for its strong Q3 results. The company had announced its quarterly results on 28 January after market hours. As the trading sessions opened today on Monday, the buzzing stock witnessed a jump of about 5%. 

This beverage and distillery company has posted revenues of Rs 3,512 crore which jumped by 6.6% sequentially and 14.55% on a YoY basis. The quarterly volumes of sales are back on track with pre-covid levels and are gaining traction. UBL’s market share too has been inching higher signifying its market leadership. The 10% sequential growth in volumes has outperformed the industry. Its EBITDA (exclusive of other income) witnessed a rise of 5.3% QoQ to Rs 174 crore. However, on a YoY basis, it's slightly down by 0.15%. The company witnessed inflationary pressures in packaging material which impacted the margins as well since the EBITDA margin contracted by 40 basis points compared to the previous quarter. The company has been spending on marketing which has yielded good results for the company.

Its profit after tax has gone up by 13.29% sequentially to Rs 91 crore. However, on a YoY basis, it witnessed a decline of 28.44%.

Going ahead, the company is likely to stay focused on completing ongoing projects before undertaking new ones. According to the press release, the capex is likely to stay below Rs 200 crore for the fiscal. On the debt front, the company has pre-paid all remaining term debt and has posted a strong liquidity base of about Rs 800 crore.

UBL is primarily engaged in the manufacturing and selling of beer and non-alcoholic beverages. It’s a market leader in the beer segment in India with a market share of over 50% with its signature brand ‘Kingfisher’.

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