Saturday, November 10, 2012

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.

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.

Furthermore, 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.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd


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