United Spirits (UNITDSPR) Q4 01/02 earnings summary

Executive summary

• Business volume grew 8% to 20.69 million cases despite an economic slowdown and consumer down-trading; first-line products rose 11% and second-line products 6%.

• Profit after tax declined to Rs 157.7 million from Rs 223.9 million, including a disputed Kerala turnover-tax provision of Rs 36.8 million.

Financial highlights

• Revenue from operations reached Rs 13,143 million, up 16% YoY; reported sales after excise duty were Rs 8,395.8 million.

• Profit before tax was Rs 289.2 million versus Rs 357.7 million; profit after tax was Rs 157.7 million versus Rs 223.9 million.

• PBIDT was Rs 662.3 million versus Rs 669.5 million, after a Rs 37 million provision for disputed Kerala turnover tax.

• Production at 12 owned distilleries rose 7.4% to a record 11.39 million cases; total sales volume was 20.69 million cases.

Outlook and guidance

• Q1 FY03 turnover rose 12% and PBT rose 17%; barring unforeseen circumstances, the outlook for the remainder of the year was satisfactory.

• Potential investments in India and overseas, including entry into Scotch and unrepresented industry segments, were under evaluation; investment decisions were to prioritize value enhancement.

• Management expected greater Scotch imports under WTO commitments and was assessing opportunities in neighboring countries.