United Spirits posts Q1 net profit at Rs 19.92 crore

The Diageo-controlled United Spirits on Thursday reported a stand-alone net profit of Rs 19.92 crore for the first quarter ended June on the back of higher sales.

The company had incurred a net loss of Rs 61.83 crore in the year-ago quarter, USL said in a filing to BSE.

USL's total income on stand-alone basis rose 11.75% to Rs 2,005.54 crore during the quarter under review, from Rs 1,794.60 crore a year earlier.

Unit volume sales during the June quarter stood at 27.3 million cases as against 27.2 million, up 2.48%.

"The company during the quarter started direct distribution/sales of relevant Diageo brands in India. This has resulted in generation of net sales revenue of Rs 42 crore during the period," USL said.

During the first quarter, the strategically-focussed portfolio added 0.5 million cases and grew volumes 5.7%, resulting in 17.2% net sales growth.

"This category now represents 33% of the total sales volume of the company," said USL.

Moreover, reduction in interest cost, which came in at Rs 128 crore for the said quarter, is partly driven by lower debt post Whyte and Mackay disinvestment and the company's focus on debt/interest rate management, USL said.

"The company is in the process of revamping its banking facilities to drive advantageous terms on borrowing, leveraging the relationship Diageo enjoys with global banks, and therefore, is already seeing a reduction in rates, which is manifested in lower costs," the company said.

USL stock on Thursday closed at Rs 3,592.35 on BSE, up 0.52%.