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Diageo-controlled liquor maker United Spirits Ltd (USL) on Wednesday reported a 20.62 per cent decline in its consolidated net profit at Rs 125.1 crore for the second quarter ended September 2020.
The company had posted a net profit of Rs 157.6 crore in the July-September quarter a year ago.
The company’s revenue from operations was up 3.97 per cent at Rs 7,590.4 crore during the quarter as against Rs 7,299.9 crore in the corresponding period of the previous fiscal.
Diageo India MD and CEO Anand Kripalu said: “The underlying revenue in the second quarter is ahead of expectations and reflects the resilience of our category, notwithstanding prolonged on-trade closures, the route to market change in Andhra Pradesh and high taxation led price increases post COVID-19.”
The agility of the supply chain team provided a fast start post lockdown and the renovation of its two core brands supported the topline recovery, he added.
Its Prestige and Above segment net sales grew 1 per cent in Q2, backed by strong momentum in Scotch portfolio, driven by improved relative price positioning in key markets as well as lapping softer comparatives, he said.
Total expenses were at Rs 7,343.8 crore in Q2/FY 2020-21 as against Rs 7,013.3 crore in the same quarter a year ago, up 4.71 per cent
For the first half (April-September) of this fiscal, USL has reported a consolidated net loss of Rs 121.5 crore as against a net profit of Rs 339.3 crore.
While its H1 revenue from operations was down 22.35 per cent to Rs 11,330.1 crore as against Rs 14,592.4 crore in April-September of the previous fiscal.
“First half performance has been primarily impacted by initial COVID-19 led lockdown driven challenges in Q1 and lower fixed cost absorption,” said Kripalu.
Over the outlook, Kripalu said: “Looking ahead, we remain cautiously optimistic with the gradual re-opening of on-premise and the ensuing festive season, recognising that safety and social distancing norms could impact demand versus prior years.”
Shares of United Spirits Ltd on Wednesday settled at Rs 510.10 apiece on the BSE, up 0.05 per cent from the previous close.
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