United Spirits Limited: Company Profile and SWOT Analysis by ICDResearch

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									United Spirits Limited

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United Spirits Limited                                                         Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                                                               The company reported revenues of US$1,403.39
Headquarters Address                  UB Tower, Bangalore, 560 001,India
                                                                               million during 2010, with a CAGR of 30.23% during
                                                                               2006–2010. Its revenue grew at an annual rate of
Telephone                             + 91 80 39856000
                                                                               23.04% over the previous fiscal year. In 2010, the
                                                                               company recorded an operating margin of 1.55%, as
Fax                                   + 91 80 39856959                         against -5.69% in 2009.

Website                               www.unitedspirits.in
                                                                               Revenue and Margins
Ticker Symbol, Stock Exchange         532432, Bombay Stock Exchange

Number of Employees                   7,000

Fiscal Year End                       March

Revenue (in US$ million)              1,403.39

Revenue (in INR million)              64,471.79




SWOT Analysis                                                                  Return on Equity

Strengths                             Weaknesses                               The company recorded a return on equity (ROE) of -
                                                                               0.60% for 2010, as compared to its peers, C&C
Leading Market Position               Low Financial Leverage                   Group plc (Ticker: GCC), Som Distilleries and
                                                                               Breweries Ltd (Ticker: 507514) and Pioneer
Strengthening Operational                                                      Distilleries Limited (Ticker: PIONDIST), which
                                      Overdependence on India                  recorded ROEs of 22.31%, 14.54% and 7.88%
Performance
                                                                               respectively. The company reported an operating
Strong Liquidity Position                                                      margin of 1.55% in 2010.


Opportunities                         Threats                                  Return on Equity

                                      Entry of Foreign Players in the Indian
Acquisition of Pioneer Distilleries
                                      Market

Growing Global Beer Consumption       Stringent Regulations

Increased Wine Consumption in India   Volatility in Input Prices




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 2.80 in 2010,
                                                                               as compared to its peers, C&C Group plc, Som
                                                                               Distilleries and Breweries Ltd and Pioneer Distilleries
                                                                               Limited, which recorded current ratios of 1.49, 2.18
                                                                               and 2.49 respectively. As of April 2010, the company
                                                                               recorded cash and short-term investments of worth
                                                                               US$166.93 million, against zero current debt. The
                                                                               company reported a debt to equity ratio of 1.49 in
                                                                               2010 as compared to its peers, C&C Group plc, Som
                                                                               Distilleries and Breweries Ltd and Pioneer Distilleries
                                                                               Limited, which recorded debt to equity ratios of 1.45,
                                                                               0.47 and 3.13 respectively.




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United Spirits Limited - SWOT Profile                                                                                  Page 1
United Spirits Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators ...................................................................................................................9
      2.2.1       Revenue and Operating Profit ...........................................................................................................................9
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................10
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................11
      2.2.4       Operational Efficiency ......................................................................................................................................12
      2.2.5       Solvency ..........................................................................................................................................................13
      2.2.6       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Efficiency ..........................................................................................................................................................15
      2.3.2       Capital Expenditure ..........................................................................................................................................16
      2.3.3       Turnover – Inventory and Asset .......................................................................................................................17
      2.3.4       Liquidity ............................................................................................................................................................18
3     Recent Developments ........................................................................................................................... 19
4     SWOT Analysis ...................................................................................................................................... 21
    4.1       SWOT Analysis - Overview ..........................................
								
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