United Spirits Ltd (USL), India’s largest alcoholic beverages maker, on Tuesday reported a 267% rise in standalone net profit at Rs 44 crore for the quarter ended June. Its net profit stood at R12 crore in the corresponding quarter last year.
However, as expected, a ban on consumption of alcohol in Bihar has impacted sales of USL during the quarter. The company witnessed 9% growth in sales at R2,041 crore compared with R1,866 crore. The company stated that consolidated results will only be announced at the end of the year.
With the ban on liquor imposed by the Bihar government following the recent assembly elections, net sales were impacted by 3 percentage points, underlying net sales growth of 12% in the quarter. USL’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 5% to R198 crore; EBITDA margins fell by 40 basis points
to 9.7%, which were driven by increased operatingexpenses.
“Our strategy and investments over the last two years has clearly driven momentum. Looking at our first quarter results, the overall performance demonstrates that we have the right strategy in place, focusing on premiumisation coupled with selective participation in popular,” Anand Kripalu, chief executive officer,