UBHL Q1 net plunges 97% to Rs 2 cr

Revenue was down by 38% to Rs 71 cr as business reduced from alcoholic beverages, leather products and readymade garments

United Breweries (Holdings) Ltd, the holding company of UB, said on Friday said net profit for the first quarter dipped by 97% to Rs 2.15 crore as income reduced by nearly half from liquor beverage business.

Revenue was down by 38% to Rs 71.74 crore as business reduced from alcoholic beverages, leather products and readymade garments.

UBHL reported profits of Rs 80.21 crore on revenue of Rs 115.51 crore during April to June in 2014.

Diageo-controlled United Spirits alleged defaults of interest payments by the firm's erstwhile promoter Vijay Mallaya-led UB Group and said it is initiating process to recover dues totaling to Rs 1,337.41 crore. UBHL, owned by Vijay Mallya, has denied the charges in a statement to the Bombay stock exchange.

In November 2014, UBSL had said the loan initially agreed on July 3, 2013, was not approved at an extraordinary general meeting of the board and that in October, UBHL stopped accounting interest for the loan. The loan was for nine years at 9.5% interest and repayment of principal was to begin from November 2018.

“In view of the restraints imposed by the High court of Karnataka, in pending winding up petitions filed by certain other creditors, the company is seeking legal advice in this regard,” said Dr Vijay Mallya, chairman of UBHL in  the statement.