United Spirits has posted a ₹55.56-crore net loss for the first quarter of the financial year because of a provision of ₹42.79 crore related to the sale of its subsidiary Whyte & Mackay.
For the same period last year, the country’s largest liquor maker posted a profit of ₹118.13 crore.
The topline too, fell 10.90 per cent to ₹1,923.90 crore during the first quarter.
The company’s shares closed at ₹2,553.20, which was 7.45 per cent higher than the previous closing price after its board announced that USL will manufacture and market some of its parent Diageo’s brands including Smirnoff vodka.
The integration of Diageo India with USL has already began, an official with USL said. The company also said it will sell part of its businesses in Andhra Pradesh and Kerala. The board has approved reporting to the Board of Industrial and Financial Reconstruction (BIFR) the accumulated losses as of March 31, 2014 resulting in erosion of 50 per cent of the peak net worth during the immediate preceding four financial years.
The board has convened an EGM on or before November 29 to take up this issue with the shareholders.