 "United Spirits reports Rs 55.6 crore net loss in Q1")
The total income during the quarter declined 11% to Rs 1,924 crore compared to Rs 2,161 crore in the same quarter last year. The operating profit declined 55% to Rs 151 crore in June quarter as against Rs 337 crore in the same quarter last year.
The loss during the first quarter was mainly on account of a provision made towards the investment made in subsidiaries.
The board of directors of the company today approved the resignation of Paul Steven Walsh, a nominee of Relay B V as a director of the company with effect from October 20, 2014. The board has also approved the appointment of Nicholas Bodo Blazquez as a director of the company with effect from October 20, 2014. U
The board has approved reporting to the Board of Industrial and Financial Reconstruction (BIFR) the fact of the accumulated losses of the cocmpany as at the end of financial year 2013-14 resulting in the erosion of more than 50% of the company's peak net worth during the immediately preceding four financial years and for this purpose, the board has approved the convening of an extraordinary general meeting of the company on or before November 29, 2014 in accordance with the provisions of Section 23 of the sick industrial companies (Special provisions) Act, 1985.
The board of directors has also approved in principle the potential sale of the Malkajgiri unit of the company and has authorised the management to explore options in this regard and thereafter approach the Board for its approval with the proposed plan for the sale. The potential sale of the Palakkad unit of the company has also been approved and the management was authorised to explore options in this regard and approach the Board for its approval with the proposed plan for the sale.
It was also decided for monetisation of the surplus assets of the company and has authorised the management to consider the options in this regard and thereafter report to the Board for its consideration and approval.
United Spirits's shares closed at Rs 2,553.20 per share making a gain of 7.45% over the previous close on Bombay Stock Exchange.