05-Mar-2024Today's Market Indicators

United Spirits says subsidiary wins bid for Women's IPL team
(16:33, 25 Jan 2023)
The bidding for the Women's Indian Premier League (IPL) was conducted by the Board of Control for Cricket in India (BCCI).

Royal Challengers Sports won the bid for a total consideration of Rs 901 crore. The consideration will be paid in 10 equal yearly instalments.

The Board of Control for Cricket in India (BCCI) on Wednesday announced that men's IPL teams Mumbai Indians, Delhi Capitals and Royal Challengers Bangalore, along with the Adani Group and Capri Global have won bids to own the five Women's Premier League (WPL) teams. The home teams of the five winning franchises will be Mumbai, Delhi, Bangalore, Ahmedabad and Lucknow respectively.

While Adani Group, through Adani Sportsline got the Ahmedabad franchise with the highest bid of Rs 1289 crore, Indiawin Sports acquired the Mumbai franchise with a bid of Rs 912.99 crore. Royal Challengers Sports, JSW GMR Cricket and Capri Global Holdings Pvt. Ltd won the rest of the three teams with winning bids of Rs 901 crore, Rs 810 crore and Rs 757 crore respectively.

Earlier, on 16 January, Viacom18 Media won the consolidated bid for media rights (i.e., Global Televisions Rights and Global Digital Rights) of the WPL for the period of 2023-2027.

United Spirits is the country's leading beverage alcohol company and a subsidiary of global leader Diageo plc. The company manufactures, sells and distributes a portfolio of premium brands.

Shares of United Spirits tumbled 5.91% to Rs 768.75 after weak Q3 earnings. The spirits maker's standalone net profit tumbled 64.45% to Rs 110.5 crore in Q3 FY23 as against Rs 310.8 crore posted in Q3 FY22. Net sales rose 3.56% to Rs 2,781.1 crore in the quarter ended 31 December 2022 from Rs 2,880 crore recorded in the same period a year ago.

EBITDA de-grew to Rs 368 crore in Q3 FY23, sliding 12.38% year on year and EBITDA margin stood at 13.2%, down 332 basis points (bps); primarily driven by inflation led gross margin contraction partly off-set by targeted A&P calibration.

Gross margin at 40.6%, down 438 bps YoY, driven by input cost inflation both for Glass & ENA partly offset by superior mix and productivity.

Separately, the committee of board of directors of the company have approved sale of all equity shares held by the company in its non-operative wholly-owned subsidiary - Sovereign Distilleries (SDL) for Rs 32 crore. The company has entered into a definitive agreement with the buyer. Upon completion of the above sale, SDL will cease to be a subsidiary of the company.

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