Liquor major United Spirits Ltd (USL) on Thursday reported a 28.59 per cent decline in consolidated net profit at Rs 157.6 crore for the second quarter ended September on consumption slowdown and liquidity challenges.
The company had posted a net profit of Rs 220.7 crore in the July-September period last fiscal, the Diageo-controlled firm said in a regulatory filing.
Its revenue from operations rose 2.26 per cent to Rs 7,299.9 crore during the quarter under review from Rs 7,138.3 crore in the corresponding quarter last year.
"Our revenue growth in this quarter was impacted by broad based consumption slowdown as well as liquidity challenges in the trade channel in certain markets. We also faced some one-off operational issues," USL CEO Anand Kripalu said.
"Consequently, net sales for the second quarter grew 3 per cent, including the sale of bulk Scotch inventory; net of that, underlying net sales growth for the quarter was flat," he added.
Within the Prestige & above segment, USL's Scotch portfolio growth was particularly impacted by a temporary supply chain disruption which has now been resolved, as well as by liquidity challenges in certain key markets for Scotch, Kripalu said.
The company's total expenses rose 3.02 per cent to Rs 7,013.3 crore in the September quarter as against Rs 6,807.1 crore a year ago.
Shares of United Spirits on Thursday closed 1.73 per cent lower at Rs 609.15 on the BSE.
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