United Spirits in low spirits! The firm posts loss at Rs 1,799 crore

United Spirits, the country's largest liquor company and the maker of McDowell's No 1 and Royal Challenge whisky, reported a net loss of Rs 1799.3 crore during the January-March quarter.
Exceptional items, including provision for loans and advances to Whyte & Mackay debt, was at Rs 1755 crore.
Total income rose nearly 6% to Rs 2,051.3 crore in the fourth quarter from Rs 1,943 crore last year. Staff costs increased 45.3% to Rs 212.3 crore including Rs 34 crore towards provisions for its employee incentive scheme.
United Spirits is now controlled by Diageo Plc. It managed to reduce its operating loss during the fourth quarter to Rs 11.9 crore from Rs 927 crore in the corresponding quarter last year.
Gross margins improved by 480 basis points partly helped by 1% decline in advertising and promotion spends at Rs 196 crore.
United Spirits’ profits are down for the quarter due to provisions for loans at Rs 184.85 crore while loss on sale of shares of a subsidiary was Rs 10.85 crore. Provision for a loan to a related party amounted to Rs 995.46 crore and profit on sale of manufacturing unit was Rs 35.65 crore.
(Image: Indiatimes)