United Spirits Q2 net plunges 74% on slow sales, forex loss
Liquor major United Spirits' second quarter net profit plunged 74 percent year-on-year to Rs 39 crore, hit by sluggish volume growth and forex losses.
November 09, 2012 / 15:29 IST
Moneycontrol Bureau
Liquor major United Spirits' second quarter net profit plunged 74 percent year-on-year to Rs 39 crore, hit by sluggish volume growth and forex losses.The company's revenue grew 24 percent to Rs 2,221 crore in July-Sep, although volumes declined 1 percent to 28.4 million cases."Excess bulk spirit stocks were sold for Rs 314.7 crore -- were this one time sale eliminated from the sales value, net revenue growth would be 6 percent for the quarter," United Spirits said on Friday.The Bangalore-based company said Tamil Nadu and West Bengal states continued to dampen its performance during the quarter. Further more, United Spirits said spirits costs were up Rs 2.25 a case from the average of FY12 and up about Rs 6.25 a case from the year ago quarter, an adverse impact of Rs 17 crore.It also had foreign exchange loss of Rs 34 crore in the second quarter, versus a gain of Rs 39 crore in the year ago quarter.While its overall volumes declined 1 percent, United Spirits said premium segment grew 14 percent to just under 7.4 million cases, last quarter.Despite the earnings disappointment, United Spirits shares were up 2 percent at Rs 1,368.30 on NSE in late trading, following reports that global drinks major Diageo has acquired 53 percent stake in the company for around USD 2 billion and a deal is set to be announced jointly once markets close. 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!
