United Spirits Q1 loss Rs 56 cr, to hive off 2 units

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Liquor maker United Spirits has posted a net loss of Rs 55.6 crore in the quarter ended June 2014 as against profit of Rs 118.13 crore in same quarter last year on account of exceptional loss.

The company has made a provision of Rs 42.7 crore for diminution in value of investment in subsidiaries, which resulted in a loss on bottomline front.

Numbers were lower than analysts' expectations. According to the average of estimates of analysts polled by CNBC-TV18, profit was expected at Rs 100 crore on revenue of Rs 2,340 crore for the quarter.

Revenue declined 11 percent to Rs 1,924 crore in April-June quarter of current financial year 2014-15 compared to Rs 2,161 crore in the year-ago period.

Operating profit halved to Rs 145 crore from Rs 291 crore during the same period and margin slipped 600 basis points to 7.5 percent from 13.5 percent year-on-year.

Meanwhile, the board of directors of the company today approved hiving off Palakad unit in Kerala and Malkajgiri unit in Andhra Pradesh.

The board also approved in principle, the proposal for monetisation of the surplus assets of the company.

The board members have approved reporting to the Board of Industrial and Financial Reconstruction (BIFR), the fact of the accumulated losses of the company at the end of FY14 resulting in erosion of more than 50 percent of company's peak net worth during the immediately preceding four financial years.

The board also approved agreement with Diageo to sell Diageo's brands through all of United Spirits' networks. United Spirits will get distribution fees of 5-6 percent for this sale.

At 13:57 hours IST, the stock was quoting at Rs 2,437.10, up Rs 61.00, or 2.57 percent on the BSE.