United Breweries' net profit declines by 48% to Rs 27 crore
United Breweries - largest liquor producer in India, reported net profit of Rs 27.05 crore for the second quarter September 30, 2016, registering decline of 48.09% year-on-year (yoy) and 81.60% quarter-on-quarter (qoq).
It's total income from operations stood at Rs 2201.24 crore, which was up by 3.16% yoy but down by 32.15% qoq.
While operating profit (EBITDA) was at Rs 121.16 crore, decreasing by 10.26% yoy and 58.35% qoq. It's operating profit margin stood at 5.50%, contracting by 82 basis point yoy and 346 basis point qoq.
This Q2, UB Group's volumes were down by nearly 5%, while that of UBL volumes remained flat. Overall in half year, UBL volumes rose by just 3% as against an industry that remained flat, displaying in a marginal gain in market share.
UBL said,"Input costs were under pressure with increase in the prices of barley and sugar, which were n part offset by improved efficiencies. While better working capital management and resultant lower borrowings has led to 29% reduction in interest cost."
The report also added,"In Bihar region total prohibitions was declared on April 5, 2016, resulting in no revenues during the period."