United Spirits logs Q1 PAT of over Rs50cr; Board nods divestment of all equity shares and CCPS in HipBar

The company registered a consolidated net profit of Rs50.3cr in Q1FY22 aided by double-digit growth in sales.

Jul 26, 2021 01:07 IST India Infoline News Service

United Spirits
United Spirits stock was in a volatile session on Monday after the company announced its June 2021 (Q1FY22) results. The stock has pulled back from its fresh record high levels and is trading in the red.

The company registered a consolidated net profit of Rs50.3cr in Q1FY22 aided by double-digit growth in sales. The company had logged a net loss of Rs246.6cr a year ago same period as Covid-19 nationwide lockdown impacted liquor shops for more than half of Q1FY21.

On the top-line front, the company posted revenue from operations of Rs6,168.5cr in Q1FY22 rising by 61.44% from Rs3,820.7cr in the same quarter last year.

During the announcement of Q1 results, the company's board also approved the sale of all equity shares and compulsory convertible preferential shares (“CCPS”) held by the Company in Hip Bar Private Limited (‘HipBar’) to Prasanna Natarajan, promoter of HipBar. The divestment will be done for consideration of Rs52 lakhs.

United Spirits has said that the proposed divestment will not have any adverse effect on Company’s performance in the current financial year. Upon completion of the above sale, HipBar will cease to be an associate company of USL.

In the early deals today on Sensex, United Spirits had touched a new 52-week high of Rs690 per piece. However, the stock in the second half trades on a bearish note.

At around 1.53 PM, United Spirits was trading at Rs660.95 per piece down by 3.3% on Sensex. 

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