Comments
United Spirits’ move to focus on power brands is paying off with the company posting a 15.86 per cent increase in net profit to ₹82.54 crore during the July-September quarter.
Total income also grew 12.45 per cent to ₹6,038.80 crore for the liquor company, which was bought over by the London-based Diageo plc two years ago.
The Prestige & Above segment grew 16 per cent driven by continued focus on premiumisation and brand renovation. This growth was partially offset by the decline of the popular segment. Decline in other operating income is mainly driven by provision write back of ₹11 crore last year.
One-off impact included the Bihar-related inventory costs of ₹17 crore in the first quarter and the provision release of ₹16 crore which was made in the previous year, a statement from the company said.
Marketing spend increased by 47 per cent in the second quarter following lower investment last year, which resulted in a 24 per cent increase in the first-half with an overall reinvestment rate of 7.3 per cent. Staff cost was negatively impacted by one-off restructuring cost of ₹28 crore and the benefits of these organisational changes will pay out in the subsequent quarters.
Detailed review The London-based Diageo plc will undertake a detailed review of each case of fund diversions and improper transactions worth ₹1,225.3 crore involving entities linked to former chairman Vijay Mallya to recover the money.
“In connection with the recovery of funds that are prima facie identified by the additional inquiry to have been diverted from the company, it is in the process of undertaking a detailed review of each case of fund diversion to assess the company's legal position and then take such action necessary to recover the funds from the relevant parties and individuals, to the extent possible," USL said in a BSE filing.
"In relation to the on-going relationship with counter-parties involved in the improper transactions identified by the additional inquiry, the company has undertaken a detailed review of such relationships and ascertained whether that are entered into on an arms length basis and with appropriate controls and taken appropriate action on the basis of findings," it added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.