United Spirits Q2 net soars 2.4 times to Rs 94.27cr
Net sales of United Spirits declined to Rs 2,038.66 crore for the quarter under consideration from Rs 2,220.69 crore for the same period year ago.
November 11, 2013 / 12:57 IST
Spirits major United Spirits reported a nearly two-and-half-fold jump in standalone net profit to Rs 94.27 crore for the quarter ended September 30, 2013, mainly on account of other income and forex gain.
The company had posted a net profit of Rs 39.27 crore for the corresponding period of previous fiscal, United Spirits said in a filing to BSE. Net sales of the company, however, declined to Rs 2,038.66 crore for the quarter under consideration from Rs 2,220.69 crore for the same period year ago, it added. The other income of the company rose to Rs 63.56 crore for the quarter ended September 30, 2013 as against Rs 13.07 crore for the same period year ago. Forex gain for the second quarter of this fiscal year stood at Rs 6.68 crore while it had registered a loss of Rs 33.95 crore for the corresponding period of previous fiscal. "During the second quarter of fiscal 2014, the strategic brands of the company in the Prestige and above segment grew 21 percent in volume (adding 1.34 million cases) and 27 percent in value," the company said. Extra neutral alcohol (ENA) prices continue to unfavourably impact the business, it added. "As has been reported for sometime now the USL business in Tamil Nadu has been adversely affected by the skewed order placement by the parastatal buying agency in the state," United Spirits said. In a separate filing, United Spirits said it's Board has approved sale of its distillery at Poonamallee in Tamil Nadu to Enrica Enterprises Private as well as a franchise agreement with the latter for Rs 125.07 crore. The scheme provides for transfer of the undertaking, business, activities and operations pertaining to the Poonamallee distillery to Enrica Enterprises Private by way of slump sale on a going concern basis, it added. Further, the board of directors of the company has also approved the franchise agreement with Enrica Enterprises pursuant to which the Enrica Enterprises will bottle it's brands for which the company will earn royalty income, United Spirits said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
