United Spirits Reports Impressive Q3 with 63.5% Surge in Net Profit to Rs 350.2 Cr

United Spirits Ltd, a liquor manufacturer controlled by Diageo, announced a significant 63.5% increase in its consolidated net profit, reaching Rs 350.2 crore for the third quarter concluding in December 2023.

This marks a substantial rise from the Rs 214.2 crore net profit recorded in the corresponding October-December quarter of the previous year, as per the regulatory filing by United Spirits Ltd (USL).

The company's revenue from operations witnessed a 5.32% increase, reaching Rs 6,962.0 crore in the reviewed quarter. In comparison, it stood at Rs 6,609.8 crore during the same period in the preceding fiscal year.

The increase in sales was attributed to the ongoing emphasis on premiumization and the sustained demand from resilient consumers, as stated in the earnings report by USL.

During the December quarter, United Spirits Ltd (USL) saw a marginal 3.6% increase in total expenses, reaching Rs 6,554.7 crore.

USL's overall revenue, encompassing brands such as McDowell's, Royal Challenge, Signature, Johnnie Walker, and Black Dog, saw a growth of 5.77%, reaching Rs 7,014.1 crore.

Hina Nagarajan, the CEO and MD of USL, stated "Despite a challenging macro environment, we have achieved a resilient quarter. Although the demand momentum in the sequential period was somewhat subdued, it is noteworthy that the premiumization trend persists."

The company maintained strong consumer engagement during a series of festivals, the cricket World Cup, and the peak wedding season. The emphasis on ongoing enhancement and efficiency in the value chain is evident in the company's performance, she stated.

Regarding the future prospects, Nagarajan expressed, "As we look forward, we maintain a prudent optimism about growth, supported by consistent investments in our brands, confidence in our innovation and renovation initiatives, and the enduring potential of the Indian consumer over the long term."

United Spirits Ltd shares concluded at Rs 1,107.85 each on the BSE, marking a marginal 0.07% decrease from the previous closing value.