In 4QFY17, United Spirits (UNSP) demonstrated strong operating performance. Net sales were almost flat YoY at Rs 20.3 bn (lower than estimates), owing to a run up to the highway ban, liquor prohibition in Bihar and franchising of regular brands. Excluding these one-offs, net sales grew by 7% YoY. EBITDA improved by 129% YoY to Rs 2.6 bn (13.1% margin vs. 5.7% YoY).