USL net up 5.6 times to Rs 56 cr

For the quarter ended March, the net profit of United Spirits Limited (USL), India’s largest manufacturer of alcoholic beverages, rose 5.6 times to Rs 56 crore. In the corresponding period last year, the company’s net profit stood at Rs 10 crore.

While total income rose 11.3 per cent to Rs 2,094.4 crore, against Rs 1,881.7 crore in the year-ago period, operating profit increased 21.9 per cent to Rs  216.6 crore, against Rs 177.6 crore in the corresponding period last year.

The USL board has recommended a dividend of Rs 2.5 per equity share for the year ended March. During the quarter ended March, R G Shaw & Company, Shaw Scott & Company, Shaw Darby & Company and Thames Rice Milling Company, ceased to be USL’s subsidiaries. During this period, USL India sold 31.4 million cases, annual growth of four per cent. The company’s strategic brands grew 30 per cent, adding 1.7 million cases.

“During the last quarter of financial year 2012-13, USL was successful in obtaining revenue-enhancing opportunities in Andhra Pradesh and Karnataka. These have been capitalised on and successfully implemented, enhancing profitability,” the company said in a statement.

At Rs 157 crore, interest costs fell from Rs 166.3 crore in the year-ago period, owing to repayments during the year, increased borrowings for operations and higher rates.

For the year ended March, USL reported a net loss of Rs 105 crore, against a net profit of Rs 187 crore in 2011-12. The loss was primarily on account of a foreign exchange loss of Rs 226 crore. Also, in 2011-12, the company had recorded a tax credit of Rs 23.2 crore; this year, it didn’t record a tax credit. Net sales rose 18.5 per cent to Rs 21,617 crore during the year, against Rs 18,233 crore in the previous year. The company’s finance costs increased 12.4 per cent to Rs 985 crore during the year. USL recorded an exceptional expense of Rs 11 crore.

During 2012-13, USL’s strategic brands grew 21 per cent and annual volumes stood at about 29 million cases, about a quarter of the company’s overall volumes.

A year earlier, these brands accounted for 22 per cent of the overall volumes.

During 2012-13, USL’s total sales rose three per cent to 123.7 million cases.

Costs on spirit rose by Rs  3.4 a litre, or Rs  13.6 a case, in 2012-13. This led to a hit of about Rs  160 crore during the financial year, and Rs  25 crore during the quarter ended March. “Despite the output of the crushing season coming into the market in the fourth quarter, ENA (extra neutral alcohol) costs did not come off their high during the fourth quarter. At the end of the year, these were down only marginally,” the company said in a statement.

Today, the USL stock closed at Rs  2,314 on BSE, a rise of 0.44 per cent.