Liquor firm United Spirits Q1 posts consolidate net profit at Rs 50 crore

Diageo-controlled liquor maker United Spirits Ltd on Friday reported a consolidated net profit of Rs 50.3 crore for the quarter ended June 2021, helped by double-digit growth in sales.

The company had posted a net loss of Rs 246.6 crore in the April-June period a year ago when most of the liquor shops were closed (till half of the quarter) due to the national lockdown.

Its revenue from operations rose 61.44 per cent to Rs 6,168.5 crore as against Rs 3,820.7 crore in the corresponding period of the previous fiscal, United Spirits Ltd (USL) said in a regulatory filing.

According to the company, the net sales increased "lapping weak prior-year comparators".

"The second Covid-19 wave-induced localised lockdowns impacted the sequential recovery momentum seen over the prior quarters. Off-trade remained resilient despite restrictions," USL said in a post-earnings statement.

Total expenses were at Rs 6,079.7 crore, up 50.41 per cent from Rs 4,042 crore earlier.

USL's 'Prestige & Above' segment net sales grew 58 per cent. Popular segment net sales increased 60 per cent, within which the priority states grew 50 per cent, it said.

USL CEO Hina Nagarajan said, "We have delivered a resilient performance on the back of our operational agility and the intrinsic strength of our portfolio as we managed through the challenges of localized and synchronized state lockdowns. The Company was back to full operations as we exited the quarter."

Over the outlook, Nagarajan said with the drop in COVID positivity rates and steady increase in the vaccination coverage, she expects the recovery momentum to accelerate.

"We remain focused on stimulating demand through our renovation, innovation, and other category growth initiatives. The embedded discipline during the first two waves of the pandemic has enabled the Company to prepare for short-term disruptions and 'Emerge Stronger' from the crisis," she added.

Shares of United Spirits Ltd settled at Rs 683.45 on BSE, up 1.12 per cent from the previous close.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel