United Spirits, a Diageo company, has posted net profit of ₹81.3 crore for the first quarter, a 29 per cent increase on a year-on-year basis on the back of improved operating performance and lower interest costs.

“The business has been steady. We are beginning to see recoveries. The momentum is coming back,” Anand Kripalu, CEO, told investors during a call on Tuesday.

A statement from the company said its revenues grew 12.9 per cent to ₹2,012 crore because of a low base due to the Supreme Court ban on the sale of liquor on highways.

Operating profit rose 22 per cent on a year-on-year basis to ₹192 crore. The margin grew 70 basis points to 9.5 per cent.

Reported net sales increased 13 per cent as the business benefited from lapping the impact of the highway ban in the same period last year and aided by improved performance in the Prestige and Above segment.

Net sales excluding the one-off impact of operating model changes increased 14 per cent.

The Prestige & Above segment net sales grew 19 per cent.

Popular segment’s net sales declined 3 per cent due to the one-off impact of operating model changes.

Net sales growth, after adjusting for the impact of operating model changes, was flat. Net sales of Popular segment in priority States grew by 7 per cent.

Reported EBITDA was ₹192 crore, up 22 per cent, driven by increased gross profit, partially offset by one-off restructuring costs, increased marketing investment as well as higher overheads.

Interest costs were ₹56 crore, 20 per cent lower, driven by debt reduction, better negotiated rates and debt-mix.

Related Topics