United Breweries - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 1164; MCap: Rs. 30767 crore)

United Breweries' adjusted performance was higher than I-direct estimates on all fronts. During the quarter, the company also recorded an exceptional expense of Rs. 62.2 crore due to recognition of impairment loss of Rs. 44.5 crore at the Bihar plant and impairment loss of Rs. 17.8 crore on investment in subsidiary company. Including the exceptional expense, PAT came in line with estimates.

Q4FY21 Earnings Summary

- Net revenues showed a sharp recovery and grew 8% YoY to Rs. 1544 crore (I-direct estimate: Rs. 1380 crore). Volumes grew 9% YoY against estimates of 15% de-growth, due to good growth in all key markets except Telangana, Delhi and Odisha

- Gross margins grew 110 bps YoY to 52% due to a better state mix and price hikes, which along with control on operational costs led to EBITDA margin of 16.9% (I-direct estimate: 13.8%). Subsequently, absolute EBITDA came at Rs. 261 crore (up 98% YoY) vs I-direct estimate: Rs. 190 crore

- The company reported exceptional expense of Rs. 62 crore due to recognition of impairment loss of Rs. 44.5 crore at Bihar plant and impairment loss of Rs. 17.8 crore on investment in subsidiary company

- Subsequently, the company reported a PAT of Rs. 97 crore (unadjusted) and came in-line with I-direct estimate of Rs. 100 crore, as operational performance was negated by exceptional expense

We will be coming out with a detailed report post the management conference call.

Shares of UNITED BREWERIES LTD. was last trading in BSE at Rs.1163.65 as compared to the previous close of Rs. 1143.45. The total number of shares traded during the day was 24594 in over 1249 trades.

The stock hit an intraday high of Rs. 1166 and intraday low of 1131.45. The net turnover during the day was Rs. 28313474.

Source : Equity Bulls

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