United Spirits net down 78%
United Spirits, the UB Group flagship company, on Wednesday reported a net profit of Rs 10 crore for the quarter ended March 31, a 78 per cent decline compared to the year-ago period.
The company’s net revenue fell four per cent to Rs 1,881 crore, as regulatory issues and a rise in taxes in Maharashtra, West Bengal and Tamil Nadu led to a drop in volumes.
The company was also hit by a loss of about Rs 64 crore on account of exchange differences in inter-company balances. An increase in the prices of ethanol and glass, key inputs for spirits companies, also took a toll.
On an annual basis, the company’s consolidated net profit fell 67 per cent to Rs 188 crore, as interest payout on a gross debt of Rs 8,136 crore soared 57 per cent to Rs 875 crore.
Revenues stood at Rs 9,186 crore, a rise of 25 per cent and volumes rose seven per cent to 122 million cases during the year. Operational earnings before interest, depreciation, taxes and amortisation rose 16 per cent to Rs 1,408 crore.
United Spirits shares on Wednesday fell 6.2 per cent on the National Stock Exchange to close at Rs 611.70 a share.