United Spirits jumps after turnaround Q2 show

United Spirits rose 5.37% to Rs 3424.85 at 13:09 IST on BSE after the company reported net profit of Rs 929.30 crore in Q2 September 2015 compared with net loss of Rs 26.90 crore in Q2 September 2014.

The result was announced during trading hours today, 3 November 2015.

Meanwhile, the BSE Sensex was up 40.72 points, or 0.15%, to 26,599.87.

On BSE, so far 96,000 shares were traded in the counter, compared with an average volume of 21,143 shares in the past one quarter.

The stock hit a high of Rs 3,499.90 and a low of Rs 3,333 so far during the day. The stock hit a record high of Rs 4,080 on 5 March 2015. The stock hit a 52-week low of Rs 2,501 on 1 December 2014.

The stock had outperformed the market over the past one month till 2 November 2015, rising 4.92% compared with 1.29% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 12.13% as against Sensex's 5.53% decline.

The large-cap company has an equity capital of Rs 145.33 crore. Face value per share is Rs 10.

United Spirits (USL)'s total income rose 4.36% to Rs 2151.49 crore in in Q2 September 2015 over Q2 September 2014.

The divestment of the United Breweries (UBL) shares during the quarter generated Rs 870 crore of free cash that has been used to retire debt and has reduced the company's net debt position to less than Rs 4000 crore from over Rs 5000 crore six months ago, the company said in a release.

During the quarter, the company sold 85 lakh equity shares held by the company in UBL (constituting 3.21% of the paid up equity share capital of UBL) for a total sale consideration net of brokerage of Rs 868.60 crore (against book value of Rs 15 crore). The profit on sale of UBL shares amounting to Rs 853 60 crore has been disclosed as a part of exceptional items.

Meanwhile, in a separate announcement during trading hours today, 3 November 2015, USL announced the appointment of Sanjeev Churiwala (Mr. Sanjeev) as its Chief Financial Officer (CFO), effective 16 November 2015.

Mr. Sanjeev joins USL from LafargeHolcim's Indian subsidiary, Ambuja Cements, a leading producer of cement, where he held the position of CFO since early 2011.

Mr. Sanjeev replaces Mr. Vinod Rao, Finance Director, Asia Pacific at Diageo, who has been serving as interim Head of Finance.

United Spirits makes alcoholic beverages. It is a subsidiary of British multinational Diageo plc.

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