Liquor major United Spirits Ltd today reported a decline of 45.20 per cent in its standalone net profit to Rs 40.95 crore for the third quarter ended December 31.
The company had reported a net profit of Rs 74.73 crore for the October-December period of the previous fiscal.
Net sales of the company on a standalone basis was up 22.87 per cent to Rs 2,638.09 crore during the quarter under review as against Rs 2,147.03 crore of the same period a year ago, United Spirits said in a regulatory filing.
"Robust performance in the quarter and we continue to build confidence in our strategy behind our power brands and our prioritised geographical participation strategy. The Diageo brand portfolio integration positively impacting both top line and operating margins," United Spirits CEO Anand Kripalu said.
Direct sales of the Diageo brand portfolio added Rs 256 crore of net sales in the quarter.
"Our focus on reducing debt continues with a 27 per cent reduction in our net debt in the nine month period (circa Rs 1,400 crore), driven by our non-core asset divestment strategy and the continued positive cash flow from operations," he added.
USL's underlying operations generated cash of Rs 405 crore, net of working capital movement of Rs 400 crore which includes the incremental working capital associated with the Diageo brands integration into the company's portfolio.
"Our capex investments are focused on upgrading our strategically important manufacturing units. Focus on rebasing the balance sheet via the divestment of surplus/non-core assets together with renegotiation of borrowings terms will continue to pare back the total interest cost for the company," he said.
Shares of United Spirits Ltd settled 3.97 per cent down at Rs 2,591.60 on BSE.
