United Spirits will report its June-quarter earnings on Monday and analysts expect the company to report moderate growth this time around.
- CNBCTV18’s poll estimates revenue growth at 8 percent and improvement in operating margins to 11 percent from 9 percent on a year-on-year (YoY) basis.
- The profit is seen growing 59 percent to Rs 129 crore, volume growth is seen 7-8 percent but flat or marginally negative in the popular segment.
- The performance is likely to be impacted by consumer slowdown and election-related disruptions like dry days.
- Raw material prices were higher in the quarter but the price hike of 1.5 percent should offset this. The management has guided double-digit revenue growth and mid-high teens EBITDA margins. They expect this on a bounce-back in volume since the second half of this financial year.
- The stock currently trades at 34 times FY21 expected earnings and most of the brokerages have a 'buy' rating on the stock.