United Breweries posts 29% decline in Q2 net profit at Rs 114.78 crore

United Breweries Ltd on Thursday reported a 29.39 per cent decline in consolidated net profit at Rs 114.78 crore in the second quarter ended September 30.

The company had posted a consolidated net profit of Rs 162.57 crore in the year-ago period, United Breweries Ltd (UBL) said in a regulatory filing.

Total income from operations during the quarter under review stood at Rs 3,590.5 crore as against Rs 3,335.85 crore in the year-ago period, it added.

While the first quarter of the fiscal was affected by national elections, the second quarter witnessed "unprecedented and excessive monsoons" across most parts of the country, UBL said.

"This coupled with an overall slackness in the market, especially in key states of Karnataka and Maharashtra, and the hardening of input prices, resulted in a decline in gross margins," it said, adding it has already initiated measures to mitigate the cost push.

Delayed payments from state corporations and duty advance demands in various states resulted in an increase in working capital during the second quarter.

"As a result interest costs were higher by 25 per cent for the first half (of the fiscal)," the company said, adding that its net debt stood at Rs 478 crore and capex cash outflows were Rs 200 crore in first half of the year.

In terms of volume, strong beer sales grew in high single digits, but that of mild beer was flat, the company said.