United Breweries has reported a 31.94 per cent decline in net profit to Rs 48.49 crore for the quarter ended on December 31, 2016, due to the impact of demonetisation and lower income.
The company had posted a net profit of Rs 71.25 crore for the corresponding period of the previous fiscal.
Total income from operations stood at Rs 2,230.86 crore for the quarter under review, up 1.20 per cent, as against Rs 2,204.3 crore for the year-ago period, United Breweries said in a BSE filing.
“The third quarter was adversely impacted by demonetisation, which resulted in both UBL and industry volume coming down 8 per cent..The unfavourable market conditions combined with impact of demonetisation, excise duty increases in several states and pressure on cost of materials consumed, resulted in a drop in UBL’s earning and profit,” the company said.
Yesterday, the board of United Breweries asked Vijay Mallya to step down as its non-executive chairman following a SEBI order, which barred the embattled businessman from holding directorship in any listed company.
In an e-mail to Mallya, United Breweries’ Company Secretary Govind Iyengar said in the absence of any stay or vacation of the SEBI order, the “board is compelled to request you to step down from the board” with immediate effect.
A copy of the e-mail along with extracts of the minutes of the board meeting has been submitted by the company to the BSE.
“The independent directors along with other directors present at the meeting held on February 6, 2017, had resolved not to send the notices and agenda relating to board meetings and/or other privileged information to Vijay Mallya till such time he obtains stay of the SEBI order,” the company added.
The board deliberated on the matter and also reviewed the legal opinions obtained in this regard.
Last month, SEBI had banned Mallya and six former officials of United Spirits Ltd (USL) from the securities markets in a case related to illegal fund diversions, while a probe is on into the role of auditors and change of control at the company.
Mallya and the six others were also restrained from holding directorship in any listed company.
Earlier, in September 2016, coming out in support of Mallya, the United Breweries management had said he would continue as UBL Chairman despite reports that ED had attached his shares in the firm.
Shares of United Breweries were trading at Rs 800.85 per scrip on BSE, up 0.04 per cent from the previous close.