12 November 2012
Update | Sector: Consumer
United Spirits
BSE SENSEX
S&P CNX
18,694
5,647
CMP: INR1,360
TP: INR1,843
Buy
Diageo deal raises the "bar"; to hasten premiumization
Expect a plethora of structural improvements; upgrading to Buy
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1,6,12 Rel. Perf. (%)
M.Cap. (INR b)
M.Cap. (USD b)
UNSP IN
130.8
1,425/450
7/107/41
177.9
3.4
Valuation summary (INR b)
Y/E March
2012 2013E 2014E
98.4
12.7
3.7
25.3
33.0
694
53.8
2.0
18.1
2.3
4.3
8.5
3.7
16.2
7.2
33.0
53.8
629
2.0
4.3
0.0
18.1
8.5
2.3
Sales
87.8
EBITDA
11.9
NP
2.4
Adj. EPS (INR) 19.0
EPS Gr. (%)
-30.9
BV/Sh. (INR)
398
P/E (x)
71.6
P/BV (x)
3.4
EV/EBITDA (x) 21.8
EV/Sales (x)
3.0
RoE (%)
4.9
RoCE (%)
8.3
The UB group has entered into an agreement to sell 27.4% stake (including 10%
preferential allotment) in United Spirits (UNSP) to Diageo for INR57.3b. Diageo will
also make an open offer to acquire an additional 26% at the same price. If the open
offer is fully subscribed, Diageo will eventually own 53.4% stake in UNSP.
The deal will bring a plethora of structural improvements. It will help to (1) bring focus
back to the core IMFL business, (2) improve operational and financial discipline, and
(3) bring more transparency in operations. We expect gradual margin expansion,
improvement in capital efficiency and reduction in leverage cost.
We are revising our estimates to model (1) 2QFY13 results, (2) higher margins post
Diageo transaction, and (3) reduction in interest expenses. We value UNSP at an EV of
17x EBITDA (for the 12 months ending September 2014). Our 12-month forward
target price is INR1,843 – upside of 37%. Buy.
Diageo to eventually own 53.4% stake
Prices as on 9th November 2012
Shareholding pattern %
As on
Sep-12
Promoter
27.8
Dom. Inst
4.9
Foreign
51.2
Others
16.1
Jun-12 Sep-11
27.8
28.0
6.1
2.6
54.9
58.2
11.2
11.2
Stock performance (1 year)
The UB group has entered into an agreement to sell 27.4% stake (including
10% preferential allotment) in UNSP to Diageo for a consideration of INR57.3b
at a price of INR1,440/share. Diageo will also make an offer to acquire an
additional 26% at the same price. If the open offer is fully subscribed, Diageo
will eventually own 53.4% stake in UNSP, for which it will pay a total of INR111.7b.
The UB group will hold 13.4% stake in the post deal entity on enlarged capital
base. Dr Vijay Mallya will continue to be the Chairman of UNSP and Diageo will
have the right to appoint CEO and CFO.
Diageo will engage with regulators on Whyte & Mackay (W&M) and take a
decision accordingly. However, it won’t have repercussions on this deal as per
management.
The transaction is valued at 20x FY12 EBITDA, in line with the multiples for
attractive emerging market businesses.
Diageo and Dr Dr Mallya has also entered into an MoU to form a 50:50 JV, which
in turn will own United National Breweries’ sorghum beer business in South
Africa. Diageo will infuse USD35m in this JV.
Deal beneficial for UNSP shareholders
UNSP will receive INR33b of cash infusion, which will be utilized to pay off
debt. Consolidated debt currently stands at INR83b.
In the short term, this deal will help reduce UNSP’s leverage costs substantially
(INR3.3b of interest savings assuming 10% interest rate). It will be EPS-accretive
despite the preferential allotment.
We believe this deal is beneficial for UNSP shareholders, as it will bring a
plethora of structural improvements. It will help to (1) bring focus back to the
core IMFL business, (2) improve operational and financial discipline, and
1
Investors are advised to refer through
disclosures made at the end of the
Research Report.
Gautam Duggad
(Gautam.Duggad@MotilalOswal.com); +9122 3982 5404
Sreekanth P V S
(Sreekanth.P@MotilalOswal.com); +9122 3029 5120

United Spirits
(3) bring more transparency in the operations. We expect Diageo’s unwavering
focus on premiumization to help (a) expand margins gradually (management
mentioned that 20% operating margin is achievable), (b) improve capital
efficiency, led by better working capital management and judicious capital
allocation, and (c) reduce leverage cost post the cash infusion. However, we expect
advertising and brand building investments to accelerate, as Diageo sets out to
correct under-investment in premium brands.
Revising estimates; upgrading stock recommendation to Buy
We are revising our estimates to model (1) 2QFY13 results, (2) higher margins post
Diageo transaction (now expect 240bp margin expansion over FY12-15), and (3)
reduction in interest expenses. We model 15.3% EBITDA margin for FY15, as we
expect margin improvement trajectory to be gradual. We believe our margin
assumptions are conservative and reflect the complexity of the IMFL market.
Though we are confident of structural margin improvement in the business,
accelerated brand investments (management attested this in the conference call)
will restrict margin improvement in the initial years. Given the timeframe involved
in completion of the deal and the regulatory formalities, we believe a better part
of the benefits will start accruing in 2HFY14.
We value UNSP at an EV of 17x EBITDA (for the 12 months ending September
2014). Our 12-month forward target price is INR1,843 – upside of 37%. While the
recent outperformance on the back of the anticipated deal may lead to some
profit booking in the short term, we believe it will offer a good opportunity to
Buy
the largest IMFL business in India, a market which offers attractive growth
opportunity underpinned by favorable demographics, rising income, and
preference for premium liquor.
Key risks to our investment argument: (a) expected margin improvement fails to
play out, (b) policy and taxation-related risks.
Deal to drive premiumization
(an extract from our Inititating Coverage report dated 31 October 2012 on Radico Khaitan)
If Diageo acquires strategic stake in UNSP, we expect a further shift in focus of
industry players towards premium IMFL segments. Diageo's India portfolio is
geared to capitalize on the unfolding premium IMFL consumption story in India.
Post the acquisition, it will be able to drive its premium/super-premium brands
through a wider distribution footprint.
Given the lackluster growth in mature markets and its underperformance v/s
Pernod in India, we expect disproportionate focus from Diageo to enhance its
market footprint in India. The combination of improving pricing environment and
shift in focus of the industry leader towards realizations/profitability could help
drive sector profitability and margins in our view.
12 November 2012
2

United Spirits
Diageo-United Spirits Deal
Diageo Plc, United Breweries Holdings (UB) and United Spirits (UNSP) announced
agreements under which Diageo will acquire 27.4% stake in UNSP. The consideration
will be INR1,440/share and the total consideration will be INR57.3b. Dr Vijay Mallya
will continue in his current role as Chairman of UNSP and UB.
Details of the deal
Diageo will acquire 19.3% interest in UNSP’s current share capital at a price of
INR1,440/share from the UB group, the UNSP Benefit Trust, two subsidiaries of
UNSP – Palmer Investment Group and UB Sports Management, and the SWEW
Benefit Trust. Of the 19.3%, 12.8% will come from UB, which post the stake sale
will own 14.9% of UNSP’s current share capital. The balance 6.5% will come from
treasury shares – UNSP Benefit Trust, two subsidiaries of UNSP and SWEW Benefit
Trust.
UNSP will also make a preferential allotment of 10% of the post-issue capital base
to Diageo at a price of INR1,440/share.
The above transactions will result in Diageo acquiring 27.4% stake in UNSP,
triggering an obligation on Diageo to launch a mandatory tender offer (open offer).
Diageo will launch a tender offer to acquire a maximum of 37,785,214 shares (26%
of the enlarged share capital) at a price of INR1,440/share. Assuming the open
offer gets fully subscribed, Diageo will own 53.4% of UNSP.
The deal values UNSP at an EV of 20x FY12 EBITDA. Diageo will pay a total
consideration of INR111.7b for its 53.4% stake.
Capital structure – pre and post-deal
Form of Purchase
Current share
capital (%)
12.8
6.5
No of shares with
Diageo post
deal (m)
16.74
8.50
14.53
37.79
77.56
Enlarged share
capital
(%)
11.5
5.9
10.0
26.0
53.4
145.3
Consideration
(INR M)
24,108
12,242
20,927
54,411
111,688
Will the
consideration
flow to UNSP
No
Ye s
Ye s
No
Direct acquisition from UBHL*
Direct acquisition from certain
USL subsidiaries and group trusts
Preferential allotment
Tender Offer (maximum)
Total
Total no of shares outstanding (m)
19.3
130.8
Source: Company, MOSL
50:50 JV for South Africa beer business
Diageo and Dr Mallya have entered into a memorandum of understanding (MoU)
under which they will form a 50:50 joint venture (JV) which in turn will own United
National Breweries’ traditional sorghum beer business in South Africa.
Diageo will infuse USD36m in the JV. It may also extend this JV in certain emerging
markets in Africa and Asia (excluding India).
The two partners will have equal shareholder votes and equal representation on
the JV’s board; Dr Mallya will be the Chairman of the joint venture entity, but with
no vote.
Implementation of the South Africa JV will be contingent on certain consents,
including from the South African Competition Authority and other relevant
regulatory authorities.
12 November 2012
3

United Spirits
Deal conditionalities
The deal is subject to fulfillment of certain conditions:
Share acquisition from UB is subject to the release of all security interests
(pledging, etc) over the UNSP shares to be acquired by Diageo.
The receipt of mandatory regulatory approvals (including competition approvals)
in India and elsewhere.
If the preferential allotment is not successful (including where it is not approved
by the shareholders of UNSP), UB has agreed to sell additional shares in UNSP to
Diageo at a price of INR1,440/share to ensure that Diageo has a minimum
shareholding of 25.1%.
If the share purchase agreement, the preferential allotment and the tender offer
do not result in Diageo holding a majority interest in UNSP, UB has agreed to vote
its remaining shareholding in UNSP as directed by Diageo for a four-year period.
UB will also vote its UNSP shares to enable Diageo to ensure that its nominees are
appointed to the UNSP board.
Diageo will have the right of first offer over UB’s remaining stake if a member of
the UB group proposes to transfer any UNSP shares other than to a permitted
transferee.
UB will also have an option to put some or all of its remaining stake in UNSP to
Diageo at a price of INR1,440/share, provided no further mandatory tender offer
is triggered; this put will start once Diageo has first consolidated a full financial
year’s results for UNSP and terminate on the 7th anniversary of that date.
Post the successful conclusion of the deal along with open offer, UB group will
own 13.4% of the enlarged share capital.
Post the successful conclusion of the deal along with open offer; UB group will
own 13.4% of the enlarged share capital
Post the successful conclusion of the deal along with open offer; UB group will own 13.4% of the
enlarged share capital
Shares (M)
No of shares hold by UB group - pre deal
No of shares sold to Diageo
No of shares remaining with UB
Enlarged share capital (m shares)
UB stake post deal
44.7
25.2
19.5
145.3
0.1
Source: Company, MOSL
What is in it for United Spirits
Short term
Of the INR57.24b consideration received for the 27.4% stake sale, INR33b will go
into UNSP’s balance sheet.
The fund infusion will be used to retire UNSP’s debt, which currently stands at
INR83b.
This will immediately reduce interest cost by INR3.3b, assuming interest rate of
10%.
Interest cost has consumed bulk of UNSP’s EBITDA over the years.
12 November 2012
4

United Spirits
Medium term
Better focus on core IMFL business:
Though issues surrounding group companies
(Kingfisher Airlines) did not have a direct impact on UNSP’s operations, they
sapped top management bandwidth. This resulted in reduced focus on the core
business, which was already facing trade issues in Tamil Nadu, higher excise in
West Bengal, rising input costs, worsening working capital and a leveraged balance
sheet.
Increased focus on premiumization:
While UNSP has shifted its focus from
garnering volumes towards profitability in the recent past, we believe Diageo’s
arrival will hasten the shift. The premium segment of the industry has been
outperforming mid and low-end brands, driven by favorable underlying
consumption drivers – rising incomes, favorable demographics and elevated
aspirations. Rising excise duties in states makes it imperative for UNSP and peers
to drive premiumization to capture better value.
Margin improvement:
UNSP’s focus on premiumization should help drive
operating margin, which is currently 13-14%. In the conference call, the
management sounded positive about reaching for the 20% operating margin target
in the medium to long term.
Adequate brand investments:
We expect Diageo to accelerate brand investments
in the premium segment to augment its market presence. We believe the UNSP
management has under-invested in premium brands. For example,
Black Dog
has
not seen sufficient investment support in our view.
Better capital allocation:
We expect improved capital allocation efficiency and
judicious use of the capital, which, in our view, is a key area of improvement for
UNSP.
Working capital improvement:
Combination of improved margin profile and
judicious capital allocation decisions should provide incremental succor to the
working capital position, going forward.
Improved operational discipline and transparency:
Possible adoption of global
best practices by Diageo will provide significant improvement in transparency
levels as well as operational business discipline.
Long term
Successful achievement of aforementioned positives should help sustain and
augment stock re-rating in our view.
We believe the IMFL opportunity is attractive in the long term. Being the market
leader with 55%+ market share, UNSP should be the key beneficiary.
With improved capital position and focused management, we see strong structural
improvements in UNSP’s business model, going forward.
In this context, we note the substantial re-rating of United Breweries post the
Heineken deal in CY09.
What is in it for Diageo
Strong market presence:
UNSP is the leading IMFL player in India, with volume
sales of 122m cases, 55% market share by value and 22 millionaire brands.
Distribution strength:
UNSP services 64,000 outlets, 98% of on-and-off-premises
network.
12 November 2012
5

United Spirits
Manufacturing strength:
40 owned plants and 42 contract tie-ups – manufacturing
and bottling presence in all states.
Access to rapidly premiumizing Indian IMFL market with attractive future growth
drivers.
Diageo becomes the market leader overnight, with strong market presence across
regions.
UNSP has leadership position across segments in India
Segment
Premium Scotch (INR 1600-2500)
Regular Scotch (INR 1000-1200)
Value Scotch (INR 1000-1200)
Premium Whiskey (INR 450-700)
Prestige Whiskey (INR 300-450)
Regular Whiskey (INR 200-300)
Rum (INR 200-300)
Vodka (INR 200-300)
Brandy (INR 200-300)
Diageo Brand
USL Brand
Largest
Brand
Black Dog 12 Yr
Teachers Highland
VAT69
Blenders Pride
McDowell’s No. 1
Officer ’s Choice
Celebration Rum
White Mischief
McDowell’s No. 1
MKT
SH. (%)
50
37
31
44
49
23
43
47
41
2nd Brand
Teachers 50
100 Pipers
Haig
Signature
Royal Stag
Bagpiper
Old Monk
Romanov
Honey Bee
Mkt 3RD Brand
SH. (%)
28
33
19
26
31
21
12
26
16
Mkt
SH. (%)
Something Special
4
Black & White
6
Passport
8
Royal Challenge
25
DSP Black
5
Old Tavern
15
Old Cask
8
Magic Moments
25
John Ex Shaw
4
Source: Company, MOSL
We value UNSP at an EV of 15x
EBITDA (for 12 months ending
September 2014)
Target price
FY15E
EBITDA
EV/EBITDA
EV
Net Debt
Equity
No of Shares
Value/share
Current price
Upside (%)
18,149
17
308,531
40,681
267,850
145
1843
1343
37.2
Upgrading to Buy; potential upside of 37%
We are revising our estimates to model (1) 2QFY13 results, (2) higher margins post
Diageo transaction (now expect 240bp margin expansion over FY12-15), and (3)
reduction in interest expenses.
We model 15.3% EBITDA margin for FY15, as we expect margin improvement
trajectory to be gradual. We believe our margin assumptions are conservative and
reflect the complexity of the IMFL market. Though we are confident of structural
margin improvement in the business, accelerated brand investments
(management attested this in the conference call) will restrict margin
improvement in the initial years.
Given the timeframe involved in completion of the deal and the regulatory
formalities, we believe a better part of the benefits will start accruing in 2HFY14.
Sharp reduction in leverage costs post the cash infusion will support near-term
earnings. We note that UNSP paid 63% of standalone EBITDA i.e. INR5.95b in FY12
to service debt. Assuming 10% interest cost, potential savings in interest expenses
post the INR33b cash infusion amounts to INR3.3b, similar to the reported
standalone PAT of INR3.4b for FY12.
We value UNSP at an EV of 17x EBITDA (for the 12 months ending September
2014). Our 12-month forward target price is INR1,843 – upside of 37%. While the
recent outperformance on the back of the anticipated deal may lead to some
profit booking in the short term, we believe it will offer a good opportunity to
Buy
the largest IMFL business in India, a market which offers attractive growth
opportunity underpinned by favorable demographics, rising income, and
preference for premium liquor.
Diageo’s entry and anticipated improvement in financial and operational discipline
should sustain the stock re-rating.
Key risks to our investment argument: (a) expected margin improvement fails to
play out, (b) policy and taxation-related risks.
6
12 November 2012

United Spirits
2Q/1HFY13 results highlights
Standalone: Volumes down 1% due to state-specific issues; forex swing aggravates
reported PAT decline
2QFY13 net sales grew 24%. Volumes declined 1% due to continued pressure in
Tamil Nadu (TN) and West Bengal (WB).
In West Bengal, the sharp excise duty increase in 2QFY12 continued to impact
performance, resulting in volumes in the state declining by 3% in 2QFY13 (down
50% in 2QFY12 and 20% in 1QFY13).
Sales contain a one-off element of INR3.15b (excess bulk spirits sold), excluding
which recurring sales grew 6%.
UNSP’s Prestige and above brands posted 14% volume growth in 2QFY13, with
~7.4m cases sold.
ENA prices increased by 4% to INR159/case against our estimate of flat prices.
Gross margin shrank 550bp, aggravated by one-off element in revenue. EBITDA
margin contracted 290bp to 11.4% primarily on account of decline in gross margin,
offset by contraction in ad-spends, employee costs and other expenses. Recurring
EBITDA margin expanded 150bp.
PBT from operations was INR643m (down 33%) on account of spike in interest cost
(up 18%) and lower other income.
There was a forex swing of INR730m YoY – loss of INR340m as against a gain of
INR394m.
Reported PAT declined 75% to INR393m. Adjusting for forex items, PAT declined
33%.
Volumes declined 1% YoY due to pressure in TN and WB
ENA prices up 4% YoY and down ~5.5% QoQ
Gross margin down 550bp YoY; EBITDA margin down 290bp YoY Interest costs increased 18% YoY
Source: Company, MOSL
12 November 2012
7

United Spirits
Key operational metrics
1QFY12
Volume Growth %
Material cost/case
ENA (INR/case)
Sales Volume (m Cases)
EBIDTA/Case
Realisation/case (INR)
Realization growth %
Ad spend (% sales)
15.4
376
147
30.7
108
630
15
7.8
2QFY12
8.0
364
153
28.7
89
624
22.6
9.4
3QFY12
0.7
390
164
30.5
61
640
-1
11.1
4QFY12
5.1
375
162
30.3
58
615
11
11.2
1QFY13
2QFY13
1.9
-1.0
387
499
151
159
31.3
28.4
107
89
658
782
4
25.3
8.3
7.7
Source: Company, MOSL
Consolidated: 1HFY13 sales up 20%; margins flat; forex gain leads to 219%
PAT growth
1HFY13 consolidated net sales grew 20% to INR52.9b. EBITDA increased 21% to
INR7.7b. Despite 23% increase in interest cost, reported PAT grew 219%, led by
positive swing of INR839m in forex items (gain of INR102m in 2QFY13 v/s loss of
INR737m in 2QFY12).
Whyte & Mackay (W&M) sales increased 73.5% to GBP72m, gross profit increased
69% to GBP32.9m and margin expanded sharply by 1,275bp to 28.3%.
Reported PBT witnessed a turnaround in 2QFY13 and posted a positive number of
GBP17.1m.
Net debt for W&M stands at GBP108.2m as at September 2012, a decline of
GBP34.2m QoQ.
Consolidated net debt decreased from INR80.6b as at June 2012 to INR78.4b as at
September 2012, a decrease of INR2.2b.
12 November 2012
8

United Spirits
Whyte and Mackay (GBPm)
1QFY12
Sales
Gross Profit
Gross Margin (%)
Marketing exp
Overheads
EBITDA
EBITDA Margin (%)
Interest
Depreciation
Restructuring exp
PBT
37.8
14.3
37.8
7.2
2.9
4.2
11.0
2.2
1.0
0.9
0.1
2QFY12
41.5
18.3
44.2
8.9
3.0
6.5
15.6
4.7
1.0
1.5
-0.8
3QFY12
49.2
31.4
63.8
10.8
3.2
17.4
35.4
3.8
1.1
-1.7
14.2
4QFY12
58.5
21.0
35.9
8.2
5.0
7.9
13.5
-2.9
2.1
6.7
2.0
1QFY13
33.8
12.0
35.5
7.1
3.7
1.2
3.5
0.8
1.1
1.1
-1.8
2QFY13 YoY Chg (%)
72.0
73.5
32.9
79.4
45.7
8.2
-7.7
4.3
43.0
20.4
215.8
28.3
1.1
-77.1
1.1
4.8
1.1
-25.0
17.1
Source: Company, MOSL
UNSP: 1 year forward P/E
UNSP: 1 year forward PB
12 November 2012
9

United Spirits
Financials and Valuation
Income Statement
Y/E March
Net Sales
Other Operating Inc
Total Revenue
Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Margin (%)
Tax
Tax Rate (%)
Minority Interest
Adjusted PAT
Change (%)
Non-rec. (Exp)/Income
Reported PAT
2010
58,530
5,093
63,623
16.4
-52,500
11,123
17.5
-950
-6,069
849
4,952
7.8
1,932
39.0
-4.9
3,026
61.4
-3,253
-227
2011
68,586
5,175
73,762
15.9
-63,115
10,647
14.4
-1,023
-4,985
904
5,543
7.5
2,098
37.8
-12
3,458
14.3
2,238
5,695
2012
82,141
5,652
87,794
19.0
-75,914
11,879
13.5
-1,448
-7,525
857
3,764
4.3
1,374
36.5
-12
2,390
-30.9
780
3,170
2013E
92,364
6,036
98,400
12.1
-85,726
12,674
12.9
-1,695
-5,925
867
5,921
6.0
2,250
38.0
-12
3,671
53.6
0
3,671
(INR Million)
2014E
106,470
6,754
113,224
15.1
-97,047
16,177
14.3
-1,846
-3,563
886
11,655
10.3
4,487
38.5
-12
7,168
95.3
0
7,168
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deffered Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Bank Deposit
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Msc Expenses
Application of Funds
E: MOSL Estimates
12 November 2012
2010
1,207
36,529
37,820
58,504
-715
95,610
23,745
-6,493
17,251
943
42,444
1,265
49,490
17,462
13,401
3,189
4,497
10,940
17,644
10,280
4,516
2,848
31,846
448
95,610
2011
1,259
40,527
41,961
67,107
-325
108,743
26,972
-7,573
19,399
1,291
44,320
1,544
61,842
21,168
14,825
4,944
1,426
19,479
20,102
13,304
5,026
1,771
41,741
448
108,742
2012E
1,259
47,254
48,712
88,002
-209
136,506
40,222
-9,020
31,201
1,100
49,797
1,539
74,487
26,218
21,167
5,110
104
21,888
24,236
16,356
6,013
1,867
50,251
2,618
136,506
2013E
1,453
83,264
84,917
54,792
-17
139,692
43,472
-10,716
32,756
2,350
49,797
1,539
77,226
29,385
23,454
1,264
477
22,645
27,427
18,602
6,740
2,086
49,799
2,618
138,858
(INR Million)
2014E
1,453
89,757
91,411
48,582
207
140,200
46,722
-12,561
34,160
1,850
49,797
1,539
83,335
32,261
25,437
161
40
25,437
33,254
23,265
7,755
2,234
50,081
2,618
140,045
10

United Spirits
Financials and Valuation
Ratios
Y/E March
Basic (INR)
EPS
Diluted EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
NWC days
2010
25.8
25.1
32.9
313.4
2.5
9.7
2011
28.2
27.5
36.6
342.8
2.5
8.9
2012
19.5
19.0
31.4
397.9
3.0
15.4
2013E
30.0
25.3
43.8
693.7
4.0
13.3
2014E
58.6
49.3
62.0
629.0
4.5
7.7
69.7
43.4
3.0
21.8
3.4
0.2
45.4
31.0
2.3
18.1
2.0
0.3
23.2
21.9
2.0
13.9
2.2
0.3
8.0
11.5
8.2
9.7
4.9
8.3
4.3
8.5
7.8
10.9
77
0.7
73
0.7
88
0.6
87
0.7
82
0.8
1.5
110.5
1.6
111.3
1.8
107.7
0.6
94.5
0.5
82.2
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Interest Paid
Direct Taxes Paid
Incr/Decr in WC
CF from Operations
Extraordinary Items
(Incr)/Decr in FA
(Pur)/Sale of Investments
Msc Exp
CF from Invest.
Issue of Shares
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
12 November 2012
2010
11,123
849
-6,069
-1,932
-4,741
-770
-3,253
815
8,236
-285
5,513
14,494
-19,532
-366
3,857
-1,547
3,197
4,490
7,687
2011
10,647
904
-4,985
-2,098
-11,211
-6,742
2,238
-5,452
-279
0
-3,493
-1,173
8,603
-381
1,871
8,919
-1,316
7,686
6,370
2012E
11,879
857
-7,525
-1,374
-9,666
-5,828
780
-18,536
5
2,170
-15,581
4,039
20,895
-458
-4,224
20,252
-1,156
6,370
5,214
2013E
12,674
867
-5,925
-2,250
-3,021
2,345
0
-4,500
0
0
-4,500
33,144
-33,210
-610
-642
-1,318
-3,473
5,214
1,741
(INR Million)
2014E
16,177
886
-3,563
-4,487
-1,823
7,190
0
-2,750
0
0
-2,750
12
-6,210
-686
903
-5,981
-1,541
1,741
200
11

United Spirits
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12 November 2012
12