United Spirits Missed Expectations
on 28/10/10 at 12:31 pmIndustry
BANGALORE — India’s United Spirits Ltd. Thursday missed expectations as it reported a 7.2% rise in second quarter net profit, weighed down primarily by higher advertising costs and interest payments.
Net profit for the three months through September rose to 746 million rupees ($16.7 million) from 696 million rupees, while sales by the maker of McDowell’s No.1, Royal Challenge and Antiquity whisky climbed 25.4% to 13.54 billion rupees from 10.80 billion rupees.
In a statement, the company said sales expanded thanks to a 16% rise in volume to 26.6 million cases, while it was also helped by price increases in various markets and stronger sales of premium products.
United Spirits’ net profit was significantly below the 1.07 billion rupees estimated by Motilal Oswal Securities, while sales also missed the 14.04 billion rupees forecast by the brokerage.