United Spirits Q2 net surges 140%

BANGALORE, NOV. 9:

United Spirits Ltd's profit is higher by 140 per cent at Rs 94.27 crore on a standalone basis for the second quarter this fiscal compared with the same period last year (Rs 39.27 crore).



The company's income from operations is down 8 per cent to Rs 2,057.56 crore (same period last year Rs 2,236.77 crore). The EPS (basic) stood at Rs 6.49 against Rs 3.



Interest costs are down Rs 33.6 crore in Q2 and Rs 39.7 crore in first-half (H1) of the year as a consequence of the loan repayment of Rs 1857.4 crore from the proceeds of the issue of preference capital and the sale of shares by United Spirits' subsidiary companies to Diageo. According to Ashok Capoor, Managing Director, during Q2, the strategic brands of the company in the prestige and above segment grew 21 per cent in volume (adding 1.34 million cases) and 27 per cent value.



These brands now represent nearly 28 per cent of the overall sales volumes vis-à-vis 26 per cent for the comparable quarter and 23 per cent for fiscal 2013.



The board of directors has approved transfer of the company\'s distillery at Poonamallee near Chennai to Enrica Enterprises Private Ltd. As part of the transfer agreement, the company has entered into franchising arrangement for its brands in Tamil Nadu.



The scheme provides for transfer of the undertaking, business, activities and operations pertaining to the Poonamallee distillery by way of slump sale on a going concern basis.



In consideration, the company will receive Rs 125.07 crore.



The franchise agreement with Enrica to bottle the company's brands will get it royalty income.
News From: http://www.7StarNews.com