Quashing aside significant apprehensions with regards its operating numbers, United Spirits (USL) reported
revenue growth of 20% at Rs9bn (our estimate at Rs9.1bn), EBTIDA growth of 17% at Rs1.8bn (our estimate at
Rs1.9bn) and net profit of Rs0.94bn, up 17% (our estimate of Rs1bn). Volume growth for the quarter stood at 15%,
with continued growth at the top end brands. EBITDA margins decline has been marginal at 50bps, in the context
of sharp spurt in input costs i.e. packaging, ENA and others costs. USL has shown a 42% increase in raw material
costs resulting in a 610bps increase yoy and yet managed to ensure stability in margins on the back of increased
focus on premium brands and lower other costs (ASP spends and employee costs).