United Spirits reported a net profit of ₹69.1 crore for the first quarter of the current fiscal while total income grew 58.61 per cent to ₹6,072.5 crore on a year-on-year basis.
“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 localised and asynchronised State lockdowns. The company was back to full operations as we exited the quarter,” Hina Nagarajan, the newly-appointed CEO of United Spirits, said in a statement.
Hopeful of recovery
For the same period last year, the company had posted a loss of ₹215 crore. On a sequential basis, United Spirits had posted a net profit of ₹173 crore. Nagarajan said that with the drop in Covid positivity rates and a steady increase in the vaccination coverage, the company expects the recovery momentum to accelerate.
“We remain focussed 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 pointed out.
Its net sales increased 57 per cent lapping weak prior-year comparators. The second Covid-19 wave-induced localised lockdowns impacted the sequential recovery momentum seen over the prior quarter. Off-trade remained resilient despite restrictions.
Interest cost
Prestige & Above segment net sales grew 58 per cent while the popular segment net sales grew 60 per cent within which the priority states grew 50 per cent. Interest cost was ₹20 crore, down 60 per cent driven by debt reduction and lower interest rates. Exceptional item included a one-off provision towards an additional demand in relation to a historical customer dispute. Tax includes a one-off reversal of ₹19.2 crore.