United Spirits Q2 net slumps 73% to Rs 39 crore

United Spirits, India's biggest liquor company by volumes, has reported a higher than expected 73.5 per cent year-on-year fall in net profit for the second quarter ending September 2012. High interest outgo on the massive debt likely dented profits.

USL had total gross debt of $1.6 billion (over Rs 8,600 crore @ 54=$) at the end of June.

In a statement to the Bombay Stock Exchange, the Vijay Mallya-controlled United Spirits said it posted a net profit of Rs. 39.27 crore for the second quarter against Rs. 148 crore in the year ago period. A brokers' poll conducted by NDTV estimated profits to decline to Rs 86.5 crore.

Net sales rose 15.5 per cent to Rs. 2,216 crore for the quarter ended September 30, 2012, from Rs. 1,926 crore for the quarter ended September 30, 2011.

Shares in the company traded 1.8 per cent higher at Rs 1,376.50 after correcting from the intraday high of Rs 1,425, which was also a 52-week high for USL shares.

Meanwhile, Reuters said Diageo Plc has agreed to buy a 53.4 percent stake in liquor baron Vijay Mallya's United Spirits Ltd for more than $2 billion.