The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Avi Mehta - Macquarie Research - Analyst
: My question was essentially on the strategic sale. I just wanted to understand, while you've given the volume and the revenue impact from the
slump sale, could you also share the EBITDA and working capital impact, if any?
And the second linked question is, for the 11 brands that have been franchised, what is the revenue, EBITDA and the payment schedule? Because
we are not really clear on how -- what is the fixed portion that comes in and the rest that comes quarterly. So a color on that, please?
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. And that is -- sorry, just a clarification, that is an equal installment over -- quarterly installments that are...
Question: Avi Mehta - Macquarie Research - Analyst
: Is that correct?
Question: Avi Mehta - Macquarie Research - Analyst
: Okay, okay. Perfect, perfect. This is extremely helpful. Just clarifying the direct and serve, which is the slump sale margins, those are at 11%, 12%.
The rest is essentially going to be franchised. Whatever EBITDA is there will now flow directly as part of the franchisee cost, at least in the next 5
years?
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MAY 30, 2022 / 4:30AM, UNSP.NS - Q4 2022 United Spirits Ltd Earnings Call
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. Pradeep, is it possible to give the slump sales part EBITDA margin so that we can just understand the potential kind of work in the numbers?
Or should we wait for clarity later? If you could kind of just help us in that last line.
Question: Avi Mehta - Macquarie Research - Analyst
: No, no, that's clear. That's clear. Just the last bit, I have a few more questions that I'll come back in the queue. The second question I have was
essentially on the input cost inflation. If you could give us an update on where ENA and glass prices are, how do you see the near-term environment?
And what are the price hikes that you've received, which can help offset it? Just so that -- I understand these are near-term pressures, but just to
help us navigate or/and appreciate how the near term is likely to play out.
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. Just 2 bits on the Prestige segment. One, if you could give us a sense, how is the Scotch growth in the fourth quarter? Because we did see
realization growth coming off. So any color on that, please?
Question: Avi Mehta - Macquarie Research - Analyst
: Perfect. And the second bit was more of an understanding. See, you launched Godawan. Is that IP with USL? Or is it with Diageo? How has that...
Question: Avi Mehta - Macquarie Research - Analyst
: So how does it work in terms of the portfolio? You have some of Diageo's -- we have very good brands from Diageo, which we are also selling,
which are in a very attractive price range. As the consumer premiumizes, you have in the Prestige, which you have -- so would you -- is there no --
like you can go in any pricing that Johnnie Walker, for example, is also present in? Or you would prefer to kind of operate in different price point?
Any understanding of how do we look at the space now that the focus will be on the Prestige only, and there are some very, very good brands over
there from Diageo as well?
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. So I mean you're essentially filling the white spaces and led the global strength, thus brand ceilings will kind of exploit that by our distribution
strength that kind of -- that USL kind of possesses. That is the way I should kind of read through?
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MAY 30, 2022 / 4:30AM, UNSP.NS - Q4 2022 United Spirits Ltd Earnings Call
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