UB Group shares rally, Kingfisher Airlines soars 22%

United Breweries, United Breweries Holdings and United Spirits are up more than 4% each on the BSE

Shares of Vijay Mallya-promoted UB Group's companies have rallied on back of huge volumes in morning trades.

United Breweries, Kingfisher Airlines, United Breweries Holdings and United Spirits are up more than 4% each as compared to a marginal 0.2% rise in BSE-500 index at 1000 hours.

United Breweries, a flagship of UB group company, has rallied 8.5% at Rs 564 after reporting 39% year-on-year (yoy) jump in net profit at Rs 98.64 crore for the quarter ended June 30, 2012, mainly on account of robust sales. Net sales grew 29% at Rs 1,226 crore on y-o-y basis.

The stock opened at Rs 529 and has seen 281,319 shares changing hands so far, against an average around 300,000 shares that were traded daily in past two weeks.

 

Kingfisher Airlines has soared 16% to Rs 8.55, bouncing back almost 22% from day’s low on the BSE. The stock opened at Rs 7.50 and hit all-time low of Rs 7.01 on the BSE. A combined 27.65 million shares have already changed hands on the counter, as against an average of less than 20 million shares that were traded daily in past ten trading days.

The cash-strapped private carrier said that it is in talks with several investors to raise funds after its first- quarter loss widened.

“Kingfisher continues to believe it will get recapitalised and get on a path of sustained profitability. The airline is in discussions with several strategic and financial investors to bring fresh capital,” the company said in a statement.

Meanwhile, the company reported a net loss of Rs 651 crore for the quarter ended June 30, 2012 against Rs 264 crore in previous year quarter due to high jet fuel costs and extraordinary expenses on account of the return of aircraft to lessors and costs associated with non-operating aircraft.