UBL net slips 19.64% to R5.85 crore

Written by fe Bureau | Bangalore | Updated: May 31 2013, 06:45am hrs
The Vijay Mallya-led United Breweries (UBL) on Thursday reported a 19.64% decline in net profit to R5.85 crore for the quarter ended March with a larger provisioning for employee benefit expenses. The company had posted a profit of R7.28 crore for the corresponding quarter last year when it had taken a hit from writing down the value of a subsidiary. In sequential terms, profit dipped 82.54% from R33.52 crore.

The employee benefits expenses at R81.48 crore were higher by 61% compared with the corresponding period last year. Employees benefits expense for the quarter and the year ended March 31, 2013, includes R27.07 crore relating to provision for claims for amount expected to be paid as reimbursements, the company said in an explanatory note.

The company, however, said that a year on year comparison may not be ideal because of the amalgamation of a subsidiary, UB Ajanta Breweries, during FY13. Indias largest brewer, which markets Kingfisher beer, reported net sales of R931.92 crore for the January-March quarter, a year-on-year increase of 3.61%. Operational profit declined to R45.52 crore from R64.71 crore a year ago.