Shares of United Spirits were falling on Wednesday as even a sharp growth in December quarter profit failed to impress investors amid broader market weakness and a slight dip in the liquor firm’s volumes.

What Happened: United Spirits, owned by UK-based Diageo, reported a robust performance in Q3, with a consolidated net profit of ₹350.2 crore, up 63% from ₹214.2 crore earned last year. The company’s consolidated revenue from operations saw a 5.3% uptick, reaching ₹6,962 crore.

The alcoholic beverage maker’s EBITDA stood at ₹487 crore for the third quarter, growing 30.8%. However, the company experienced a slight decline in volumes, with a 1.8% year-on-year fall to 16,476 cases in Q3 FY24.

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In terms of product categories, United Spirits’ “Prestige and Above” (PA) segment reported impressive results, with a 10% increase in sales, reaching ₹2369 crore. PA volumes also gained 4.6% to 13,419 cases during the quarter.

On the other hand, sales of the popular category saw a decline of 12.6%, amounting to ₹305 crore in Q3 FY24, with volumes dropping by 22.8% to 3,057 cases in the same period.

Hina Nagarajan, CEO and managing director of United Spirits, emphasised the company’s high consumer engagement during the quarter, driven by festivals, the cricket World Cup and the peak wedding season. Looking ahead, the company maintains a cautiously optimistic outlook, focusing on sustained investments in brands, innovation, and the long-term potential of the Indian consumer market.

Price Action: United Spirits’ share price was down 0.39% at ₹1,103.75, clawing back some losses after dipping 0.84% near the start of trade.

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