United Spirits shares shed 2% on Rs 365-cr claim from customer

In the second quarter, the company's net profit declined 38 percent.

Shares of United Spirits Limited lost over 2 percent to Rs 1,061 in early trade on December 18 after the company said it has received a substantial claim of Rs 365.33 crore from an existing domestic institutional customer.

Owned by British multinational alcoholic beverage company Diageo, United Spirits said the claim is tied to a past settlement where all recovery claims made by the customer had been settled.

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"The relevant details have been disclosed in the company’s financial statements for the years ending March 31, 2017, March 31, 2018, and March 31, 2022. The company is not in a position to determine the financial implication of this claim at this point," it said in an exchange filing on December 15. "There was a delay in intimation since the historical documents about this matter needed to be reviewed."

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In the second quarter, United Spirits reported a consolidated net profit of  Rs 339.3 crore for the September quarter of FY24, registering a decline of 38 percent from Rs 547.7 crore a year back. The company's revenue stood at Rs 6,736.5 crore, falling 18.6 percent from Rs 8,282.7 crore in the year-ago quarter.

Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was at Rs 467 crore, a growth of 21.4 percent on rebased prior year comparators.

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