United Spirits spurts after declaring Q1 result

United Spirits gained 4.62% to Rs 2,483 at 14:01 IST on BSE, with the stock extending intraday gains after declaring Q1 June 2014 results.

United Spirits declared Q1 June 2014 results during market hours today, 20 October 2014.

Meanwhile, the BSE Sensex was up 290.95 points or 1.11% at 26,399.48

On BSE, so far 74,307 shares were traded in the counter, compared with an average volume of 45,526 shares in the past one quarter.

The stock hit a high of Rs 2,504.60 and a low of Rs 2,380 so far during the day. The stock hit a record high of Rs 2,940.55 on 15 April 2014. The stock hit a 52-week low of Rs 2,226 on 5 September 2014.

The stock had outperformed the market over the past one month till 17 October 2014, falling 0.87% compared with Sensex's 1.96% fall. The scrip, however, underperformed the market in past one quarter, falling 1.09% as against Sensex's 2.14% rise.

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

United Spirits reported a net loss of Rs 55.56 crore in Q1 June 2014 as compared with net profit of Rs 118.13 crore in Q1 June 2013. Total income from operations (net) fell 10.97% to Rs 1923.90 crore in Q1 June 2014 over Q1 June 2013. Bottomline in Q1 June 2014 was impacted by an exceptional item of Rs 42.79 crore, United Spirits said.

Meanwhile, the Board of Directors of United Spirits approved reporting to the Board of Industrial and Financial Reconstruction (BIFR), the fact of the accumulated losses of the company as at the end of financial year ended 31 March 2014 resulting in the erosion of more than 50% of the company's peak net worth during the immediately preceding four financial years. For this purpose, the Board has approved the convening of an extraordinary general meeting of the company to be held on or prior to 29 November 2014, in accordance with the provisions of Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985 and to take up such other matters in the meeting so convened as required under law.

The Board of Directors of United Spirits also approved in principle the potential sale of the Malkaigiri Unit of the company and has authorized the management to explore options in this regard and thereafter approach the Board for its approval with the proposed plan for the sale.

United Spirits said that the company's Board of Directors also gave an in principle approval to the potential sale of the Palakad Unit of the company and has authorized the management to explore options in this regard and thereafter approach the Board for its approval with the proposed plan for the sale.

The Board of Directors of United Spirits also approved in principle, the proposal for monetization of the surplus assets of the company and has authorized the management to consider the options in this regard and thereafter report to the Board for its consideration and approval.

United Spirits is the largest alcohol beverage company in India.

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