Diageo-controlled liquor maker United Spirits Ltd USL reported a 12.14 per cent decline in consolidated net profit at Rs 178.6 crore for the fourth quarter of March, as margins were impacted by rising inflation.
The company had posted a net profit of Rs 203.3 crore in the year-ago period, according to a regulatory filing.
Revenue from operations was up 1.16 per cent at Rs 7,767. 3 crore were under review during the quarter. It was at 7,678 in the same period a year ago. 1 crore.
The earnings statement from the USL said that the growth margin was 41.7 per cent, down 220 bps basis points impacted by rising inflation partly offset by favourable product mix and productivity savings.
Total expenses were Rs 7,429. In the latest March quarter, 4 crore were compared to 7,392 in the same quarter. 2 crore were in the same period a year ago.
The USL's CEO, Hina Nagarajan, said the company had delivered another quarter of consistent top-line and resilient EBITDA performance.
The growth in the Prestige and above segment demonstrates resilient consumer demand, the strength of our portfolio and focused execution of the strategy by the team. She said that strong cash flow generation is enabling reinvestment in sustainable long-term growth.
USL's net profit increased to Rs 810.6 crore for the fiscal year ended March. In the previous financial year, it had a net profit of 362.1 crore.
Revenue from operations was Rs 3,106. 18 crore were in 2021 -- 22. This is 13.28 per cent higher than Rs 2,741. In the year-ago period, there were 85 crore crore.
It said that the growth was underpinned by strong consumer demand in the off-trade, premiumisation, recovery in on-trade and lapping soft comparators.
The USL has completed a'strategic review of its select popular liquor brands. The company had previously planned to finish it in the calendar year 2021 and was extended several times.
The board has approved the sale and franchising of the portfolio to an unrelated third party because of the strategic review of the select popular brands. This is a significant move to enable a focus on Prestige and Above' and reshape our portfolio to help deliver our growth mission, Nagarajan said.
USL's popular portfolio comprises around 30 entry-level lower-priced liquor brands with an average price less than 400 for a 750 ml bottle, straddle whisky, brandy, vodka and gin.
The shares of United Spirits rose 2.43 per cent from the previous close on Friday, at Rs 778.65 on the BSE.