Lower than expected P&A volumes impact USL performance
News: USL net revenues grew 34% YoY to Rs 2169 crore, driven by resilient demand in off-trade channels and on-trade recovery. Prestige & Above segment volumes grew 24% YoY to 10 million cases, driven by premiumisation trend. Popular segment grew 10% to 8.6 million cases. Subsequently, the reported EBITDA and PAT grew 63% and 3x to Rs 274 crore and Rs 210 crore respectively.
Views: USL numbers were below I-direct estimates on topline and EBITDA front, while reported PAT was higher than I-direct estimates due to higher other income and a tax credit on account of recognizing a deferred tax asset. The company has also recorded an exceptional expense of Rs 38 crore, due to an ongoing business restructuring expense. USL board has approved sale and franchising of select popular portfolio brand to an unrelated third party.
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