Diageo controlled liquor maker United Spirits Ltd on Wednesday reported a decline of 57.82 percent to Rs 49.3 crore in its consolidated net profit for the fourth quarter ended March 2020, mainly impacted by COVID-led disruptions in the market and consumption slowdown.
The company had posted a net profit of Rs 116.9 crore in the January-March quarter a year ago, United Spirits Ltd (USL) said in a regulatory filing.
Its Revenue from operations was down 11.86 percent to Rs 6,419 crore during the quarter under review as against Rs 7,283.1 crore in the corresponding period previous fiscal.
"The business was severely impacted in the fourth quarter by COVID-19 led disruption which was already subdued due to the ongoing consumption slowdown during the fiscal," Diageo India MD & CEO Anand Kripalu said.
USL's total expenses declined 11.37 percent to Rs 6,309 crore in Q4/FY 2019-20 as against Rs 7,118.9 crore.
For the full 2019-20 fiscal, USL net profit was down 9.21 percent to Rs 620.6 crore. It was Rs 683.6 crore in the previous year.
Its revenue from operation in the fiscal was marginally up to Rs 28,823.7 crore. It was Rs 28,872.5 crore in 2018-19.
"During this fiscal, we experienced substantial inflation in our key raw material costs. While this resulted in significant compression in gross margin."
"While the outlook for next year remains uncertain, I am confident in the resilience of our category and our agility and ability to adapt in this difficult environment. We will continue to execute with discipline and invest prudently to meet evolving consumer needs," Kripalu said.Shares of United Spirits Ltd on Wednesday settled at Rs 577.80 on the BSE, down 0.88 percent from previous close.