UNITED SPIRITS 2023-24 Annual Report Analysis

Mon, 8 Jul

UNITED SPIRITS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

UNITED SPIRITS Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 58.7% in FY24 as against 24.2% in FY23.
• Depreciation charges decreased by 2.5% and finance costs decreased by 26.9% YoY, respectively.
• Other income grew by 208.2% YoY.
• Net profit for the year grew by 25.0% YoY.
• Net profit margins during the year declined from 17.1% in FY23 to 41.7% in FY24.

UNITED SPIRITS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	-65,920	-33,760	NA
Other income	Rs m	730	2,250	208.2%
Total Revenues	Rs m	-65,190	-31,510	NA
Gross profit	Rs m	15,920	19,830	24.6%
Depreciation	Rs m	2,820	2,750	-2.5%
Interest	Rs m	1,040	760	-26.9%
Profit before tax	Rs m	12,790	18,570	45.2%
Tax	Rs m	1,530	4,490	193.5%
Profit after tax	Rs m	11,260	14,080	25.0%
Gross profit margin	%	-24.2	-58.7
Effective tax rate	%	12.0	24.2
Net profit margin	%	-17.1	-41.7

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UNITED SPIRITS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 39 billion as compared to Rs 36 billion in FY23, thereby witnessing an increase of 7.7%.
• Current assets rose 18% and stood at Rs 74 billion, while fixed assets rose 10% and stood at Rs 37 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 111 billion as against Rs 96 billion during FY23, thereby witnessing a growth of 15%.

UNITED SPIRITS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	60,000	71,200	18.7
Current Liabilities	Rs m	36,230	39,030	7.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	96,040	110,720	15.3
Current assets	Rs m	62,340	73,770	18.3
Fixed Assets	Rs m	33,700	36,950	9.6
Total Assets	Rs m	96,040	110,720	15.3

UNITED SPIRITS Cash Flow Statement Analysis

• UNITED SPIRITS's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion, an improvement of 81.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 billion from the Rs 600 million net cash flows seen during FY23.

UNITED SPIRITS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	6,150	11,180	81.8%
Cash Flow from Investing Activities	Rs m	-550	2,260	-
Cash Flow from Financing Activities	Rs m	-5,000	-4,070	-
Net Cash Flow	Rs m	600	9,370	1,461.7%

Current Valuations for UNITED SPIRITS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,265.3, stands at 65.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at -27.3 times.
• The company's price to cash flow (P/CF) ratio stood at 41.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	-90.6	-46.4
TTM Earnings per share	Rs	15.5	19.4
Diluted earnings per share	Rs	15.5	19.4
Price to Cash Flow	x	39.1	41.6
TTM P/E ratio	x	48.9	65.4
Price / Book Value ratio	x	10.1	9.8
Market Cap	Rs m	605,247	699,821
Dividends per share (Unadj.)	Rs	0.0	9.0

Ratio Analysis for UNITED SPIRITS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.7x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 25.4x during FY24, from 13.3x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 19.8% during FY24, from 18.8% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 27.1% during FY24, from 23.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 13.4% during FY24, from 12.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	1.9
Debtors’ Days	Days	-13	-33
Interest coverage	x	13.3	25.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	13.4
Return on equity	%	18.8	19.8
Return on capital employed	%	23.1	27.1

To see how UNITED SPIRITS has performed over the last 5 years, please visit here.

UNITED SPIRITS Share Price Performance

Over the last one year, UNITED SPIRITS share price has moved up from Rs 914.9 to Rs 1,265.3, registering a gain of Rs 350.4 or around 38.3%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for UNITED SPIRITS and quarterly results for UNITED SPIRITS)