Bloomberg News

United Spirits Net Falls 83% on Higher Foreign Exchange Losses

May 29, 2012

United Spirits Ltd. (UNSP), India’s second- largest maker of alcoholic beverages by market value, said fourth-quarter profit fell 83 percent, missing analysts’ estimates, because of foreign-exchange losses and higher finance costs.

Net income declined to 100 million rupees ($1.8 million) in the three months through March, from 599 million rupees a year earlier, the Bangalore, India-based company said in a statement. That trailed the 656 million-rupee median of 13 analysts’ estimates compiled by Bloomberg.

Profit for the quarter declined due to higher foreign exchange losses and higher interest costs, the company said in the statement. The loss from foreign exchange widened to 205 million rupees from 2.7 million rupees a year earlier, while interest cost rose 43 percent to 1.66 million rupees.

The company’s shares rose 1.3 percent to 652.65 rupees in Mumbai trading yesterday.

Net sales for the maker of McDowell’s No. 1 whisky and Romanov vodka increased 17 percent to 18.6 billion rupees in the quarter. This fell short of the 18.4 billion rupees median of 13 analysts’ estimates compiled by Bloomberg.

To contact the reporter on this story: Malavika Sharma in New Delhi at msharma52@bloomberg.net.

To contact the editors responsible for this story: Stephanie Wong at swong139@bloomberg.net;


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