United Spirits Q1 profit drops 14%

Bengaluru: Liquor maker United Spirits has reported a 14% decline in its consolidated net profit for the June quarter to Rs 417 crore. The company had posted Rs 485 crore in the year-ago period. Its revenue from operations in the first quarter stood at Rs 6,295 crore, a 0.9% increase compared to Rs 6,238 crore in the same quarter last year.

Its subsidiary Royal Challengers Sports Private Limited (RCSPL), which owns the RCB team for IPL and WPL, posted a 16% growth in revenue at Rs 478 crore compared to Rs 413 crore in the year-ago period.

According to a regulatory filing, Rs 11 crore as employee severance cost has been presented as an exceptional item in the standalone and consolidated financial results. “Additionally, RSCPL has recognized an amount of Rs 3 crore as financial assistance provided to deceased RCB fans due to the stampede incident, which is presented as an exceptional item in the consolidated financial results,” the filings added.

The company reported consolidated net sales value (NSV) at Rs 3,021 crore, up 9.4% and reported EBITDA at Rs 644 crore.

Praveen Someshwar, CEO & Managing Director, said, “We delivered a resilient quarter with the Prestige & Above portfolio sustaining its growth momentum while cycling a high prior year base. The quarter also marked the completion of the Nao Spirits acquisition. Looking ahead, we remain focused on our circle of control to lead the next wave of category growth through sharper portfolio, tailored consumer engagement and revenue growth management.”  

Shares of United Spirits closed at Rs 1,318.20, up 0.87% on the BSE on Thursday.