Check Share Price: United Spirits faces downturn despite beating earnings estimates

United Spirits found itself in a challenging position on the morning of November 9, with its stock trading lower after the company released its second-quarter earnings for the current financial year.

While the spirits company experienced a 1.4 percent decline in revenue and a 13.6 percent drop in profit after tax compared to the previous year, these figures managed to surpass market expectations. Analysts emphasized that investors should closely monitor trends in raw material prices and developments related to the India-UK Free Trade Agreement (FTA).

Advertisement

One positive note was the company’s consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which showed a significant 21.4 percent year-on-year increase on rebased prior year comparators, indicating a strong operational performance despite the overall downturn in earnings.

As of 10:09 am, United Spirits’ stock was trading 1 percent lower at Rs 1,087.55 on the National Stock Exchange.

It’s worth noting that the stock had experienced a substantial 24 percent increase in 2023, outperforming the benchmark Nifty. The market response reflects the delicate balance between the company’s resilience and the challenges posed by changing market dynamics.