United Spirits slips as Q4 net more than halve

Operating costs jumped 20% to Rs 1,704 crore, while interest expenses rose 43% to Rs 166 crore inQ4FY12

United Spirits has slipped 10% to Rs 588 in morning trades on reporting an 83% year-on-year (y-o-y) drop in net profit at Rs 10 crore for the fourth-quarter ended March 2012 due to higher operating and finance costs. Net sales however, grew 17% at Rs 1,863 crore on y-o-y basis.

“Operating costs jumped 20% to Rs 1,704 crore, while interest expenses rose 43% to Rs 166 crore during the recently concluded quarter. The company has incurred a foreign exchange loss of Rs 21 crore,” Vijay Mallya-led liquor firm said in a filing.

Meanwhile, the board of directors of the company has recommended a dividend of Rs 2.50 per share (25%) for the financial year 2011-12.

 

A combined around 546,840 shares have changed hands on the counter in morning trades on both the exchanges.