The bottomline of United Breweries Ltd (UB), liquor baron Vijay Mallya's flagship company, has been hit this year going by the half-yearly financial results for the period ending March 3, 1997.
As compared to the corresponding six months ending March 31, 1996, UB's net profit has plummeted this year -- down to Rs 1.47 crore from 7.05 crore in March 1996.
The company's net sales and income from operations were Rs 127.24 crore for the last six months of 1996-97, as against Rs 115.56 crore in the previous year. The company has blamed the total prohibition policy adopted by the Andhra Pradesh and Haryana governments for the reduced profits in 1996-97.
Further, the revised excise policy in Maharashtra, and a fall in sales in that state for over two months resulted in a substantial loss of volume with consequential loss in profit.
However, net sales income for the 12 months ended March 31, 1997 has shown good results (Rs 262.56 crore). For an extended 18-month period during the same time in the previous year, the figure was Rs 297.63 crore.
Meanwhile, sister companies such as McDowell & Company Ltd, which showed a Rs 1.48 crore loss for the six months ended March 31, 1996, have turned around and registered a profit of Rs 1.41 crore for the corresponding period this year. But, the net sales ,at Rs 341.96 crore, have fallen for the six month period this year, as compared to the results of Rs 420.47 crore declared during the same period last year.
The company has shown profits primarily because of the handing over of their polymers division.
The process, which is at an advanced stage, is expected to be completed shortly after the Andhra Pradesh government provides certain approvals. The company also expected the relaxed prohibition in Andhra Pradesh from April 18,1997 to have a favourable impact on the working results of the company during the current year.
At Herbertsons Ltd, the situation looked bleak as the company's net profit has dropped from Rs 4.06 crore during the six month period ending March 31, 1996 to Rs 2.01 crore for the same period this year.
The net sales, which included service charges, has also reduced from Rs 150.09 crore, while for the same period this year it was Rs 117.45 crore.
The yearly audited figures ending March this year for last year stood at Rs 266.70 crore, while for the same period this year the unaudited results showed a figure of Rs 236.63 crore.
Herbertsons' financial results reflected the sale of the company's Bombay Breweries Unit and the UB-MEC batteries unit. The company blames the changes in the Maharashtra's excise policy for severely affecting its operations.The prohibition policy adopted by Andhra and Haryana should be blamed for the reduced profits in 1996-97 -- Vijay Mallya
