United Spirits Q2 Net Profit Rises 91% to Rs 548 Crore

Diageo-controlled liquor maker United Spirits Ltd (USL) on Friday reported a 91.23 per cent increase in its consolidated net profit to Rs 547.7 crore for the second quarter ended September, helped by an exceptional gain from slump sale of its business undertaking.

The company had posted a net profit of Rs 286.4 crore in the July-September quarter a year ago, United Spirits Ltd (USL) said in a regulatory filing. However, its revenue from operations was almost flat to Rs 8,282.7 crore during the quarter under review as against Rs 8,208.8 crore in the corresponding period of the previous fiscal.

In its earning statement, USL said, "Growth reflects resilient consumer demand in off-trade, rebounding in on-trade and continued mix improvement." USL's profit before exceptional items and tax in the September quarter was at Rs 357.5 crore as compared to Rs 389.7 crore last year. Exceptional items primarily comprise a one-time profit of Rs 381 crores arising from the slump sale of the business undertaking associated with 32 brands in the 'Popular' segment.

USL's total expenses were at Rs 7,932.3 crore, up 1.39 per cent in the second quarter of FY 2022-23 from Rs 7,822.9 crore. "We have delivered a quarter of strong top-line growth and resilient bottom-line performance. The performance is underpinned by continued growth momentum and strong mix improvement from recent innovation and brand renovations," Diageo India CEO Hina Nagarajan said.

The external environment remained challenging during the quarter under review with an ongoing scotch pricing negotiations in select states, route to market change in Delhi and unprecedented levels of input cost inflation. Nagarajan added, "Looking ahead, in the shorter term, we expect inflation challenges to continue. Scotch price discussions have successfully concluded in a few states. We are focused on maintaining the momentum while driving revenue growth management initiatives and ramping up productivity across the value chain."

Shares of USL on Friday traded 1.28 per cent down to settle at Rs 820.40 per share on the BSE.