Diageo-controlled liquor maker United Spirits Ltd on Friday reported a consolidated net profit of Rs 50.3 crore for the quarter ended June 2021, helped by double-digit growth in sales.
The company had posted a net loss of Rs 246.6 crore in the April-June period a year ago when most of the liquor shops were closed (till half of the quarter) due to the national lockdown.
Its revenue from operations rose 61.44 per cent to Rs 6,168.5 crore as against Rs 3,820.7 crore in the corresponding period of the previous fiscal, United Spirits Ltd (USL) said in a regulatory filing.
According to the company, the net sales increased “lapping weak prior-year comparators”.
“The second Covid-19 wave-induced localised lockdowns impacted the sequential recovery momentum seen over the prior quarters. Off-trade remained resilient despite restrictions,” USL said in a post-earnings statement.
Total expenses were at Rs 6,079.7 crore, up 50.41 per cent from Rs 4,042 crore earlier.
USL’s ‘Prestige & Above’ segment net sales grew 58 per cent. Popular segment net sales increased 60 per cent, within which the priority states grew 50 per cent, it said.
USL CEO Hina Nagarajan said, “We have delivered a resilient performance on the back of our operational agility and the intrinsic strength of our portfolio as we managed through the challenges of localized and synchronized state lockdowns. The Company was back to full operations as we exited the quarter.”
Over the outlook, Nagarajan said with the drop in COVID positivity rates and steady increase in the vaccination coverage, she expects the recovery momentum to accelerate.
“We remain focused on stimulating demand through our renovation, innovation, and other category growth initiatives. The embedded discipline during the first two waves of the pandemic has enabled the Company to prepare for short-term disruptions and ‘Emerge Stronger’ from the crisis,” she added.
Shares of United Spirits Ltd settled at Rs 683.45 on BSE, up 1.12 per cent from the previous close.