The profit from operations went up 84.8% to Rs 122 crore during the quarter compared to Rs 66 crore in the year-ago period
Vijay Mallya-controlled United Breweries (UBL), India’s largest beer maker, on Tuesday reported a 80% rise in standalone net profit at Rs 72 crore for the third quarter ended December 2015. The net profit in the same quarter last year had stood at Rs 40 crore.
The net sales for the quarter went up 15% to Rs 1031 crore from Rs 896 crore a year ago. United Breweries, which makes Kingfisher Beer, is India’s largest brewer.
The company recorded growth in volumes in line with the market. The industry had recorded a 13% growth in the nine month period ended December. UBL’s volume growth was driven by Kerala, Telangana, and Karnataka and to a lesser extent also in markets like Delhi, Chandigarh and MP. Gross margin during the nine months period ended December 2015 was higher by 135 basis points driven by a favourable market mix and stable input prices, the company said in a statement.
The profit from operations went up 84.8% to Rs 122 crore during the quarter compared to Rs 66 crore in the year ago period. For the nine month period, UBL reported 15% rise in net profit at Rs 243 crore compared to Rs 211 crore in the year ago period. Net sales went up to Rs 3,385 crore as against Rs 3,134 crore, showing a growth of 8% year on year.
Recently, ICICI Bank, the country’s largest private sector lender, picked up 1.95 million shares of United Breweries amounting to 0.74% stake in UBL through an open market deal from UBHL, a promoter of United Breweries. The transaction was valued at Rs 186.03 crore.
As of December quarter, United Breweries (Holdings) held 30.29 million shares or 11.46% stake in the company. In November, YES Bank had sold 425,000 shares of United Breweries for Rs 39.48 crore through open market route.