United Spirits dips 7% on weak Q3 earnings
United Spirits shares have dipped 7% to Rs 580 after reporting 64% year-on-year (y-o-y) drop in net profit at Rs 47.06 crore, due to increase in raw materials cost and higher duties in certain states, during the quarter ended December 2011. Vijay Mallya-led breweries and distilleries firm had a net profit of Rs 129.96 crore in the corresponding quarter last year.
Net sales remained flat at Rs 1,954 crore against Rs 1,960 crore in the year-ago period. However, interest costs were 34% higher in the October to December quarter due to higher interest rates and increased debt taken for working capital and capital expenditure plans.
In a filing to stock exchanges the company said it has received shareholder nod to raise up to $225 million or about Rs 1,130 crore, through foreign currency convertible bonds (FCCB).
A total 567,997 shares have changed hands on the counter so far on both the exchanges.