United Breweries Q3 profit down 32% at Rs 48.49 crore

Total income from operations stood at Rs 2,230.86 crore for the quarter under review, up 1.20 percent, as against Rs 2,204.3 crore for the year-ago period, United Breweries said in a BSE filing.

PTI February 09, 2017 14:53:53 IST
United Breweries Q3 profit down 32% at Rs 48.49 crore

New Delhi: United Breweries has reported 31.94 percent decline in net profit to Rs 48.49 crore for the quarter ended on December 31, 2016, due to the impact of demonetisation and lower income.

The company had posted a net profit of Rs 71.25 crore for the corresponding period of the previous fiscal.

United Breweries Q3 profit down 32 at Rs 4849 crore

Vijay Mallya. File photo. AFP

Total income from operations stood at Rs 2,230.86 crore for the quarter under review, up 1.20 percent, as against Rs 2,204.3 crore for the year-ago period, United Breweries said in a BSE filing.

"Third quarter was adversely impacted by demonetisation, which resulted in both UBL and industry volume down 8 percent..The unfavorable market conditions combined with impact of demonetisation, excise duty increases in several states and pressure on cost of materials consumed, resulted in drop in UBL's earning and profit," the company said.

Yesterday, the board of United Breweries asked Vijay Mallya to step down as its non-executive chairman following a Sebi order which barred the embattled businessman from holding directorship in any listed company.

In an e-mail to Mallya, United Breweries' Company Secretary Govind Iyengar said that in the absence of any stay or vacation of the Sebi order, the "board is compelled to request you to step down from the board" with immediate effect.

A copy of the e-mail along with extracts of the minutes of the board meeting has been submitted by the company to the BSE.

"The independent directors along with other directors present at the meeting held on February 6, 2017 had resolved not to send the notices and agenda relating to board meetings and/or other privileged information to Vijay Mallya till such time he obtains stay of the Sebi order," the company added. The board deliberated on the matter and also reviewed the legal opinions obtained in this regard.

Last month, Sebi had banned Mallya and six former officials of United Spirits Ltd (USL) from securities markets in a case related to illegal fund diversions, while probe is on into the role of auditors and change of control at the company.

Mallya and the six others were also restrained from holding directorship in any listed company.

Earlier, in September 2016, coming out in support of the Mallya, the United Breweries management had said he would continue as UBL chairman despite reports that ED had attached his shares in the firm.

Shares of United Breweries were trading at Rs 800.85 per scrip on BSE, up 0.04 percent from previous close.

Updated Date:

also read

ED attaches 4.13 cr United Breweries shares held by promoter firms; agency now owns 16.15% of beer-maker
Business

ED attaches 4.13 cr United Breweries shares held by promoter firms; agency now owns 16.15% of beer-maker

With this transfer, the Enforcement Directorate (ED) now holds 4,27,04,758 equity shares (16.15% stake) in the company, said United Breweries, which was once headed by fugitive liquor baron Vijay Mallya

TCS vs Infosys: While Tata gem misses margin estimates, Bengaluru-based firm disappoints on profit front; Q3 analysis in 6 charts
Business

TCS vs Infosys: While Tata gem misses margin estimates, Bengaluru-based firm disappoints on profit front; Q3 analysis in 6 charts

While Tata Consultancy Services' (TCS) profit margins misses analysts' estimates, Infosys' numbers disappointed on the net profit and margin front though its revenue and guidance met estimates

ITC Q3 net profit up 17% at Rs 3,090.20 cr; FMCG revenue declines 31%
Business

ITC Q3 net profit up 17% at Rs 3,090.20 cr; FMCG revenue declines 31%

ITC's total income during the October-December quarter stood at Rs 10,579.11 crore