United Spirits Faces Profit Dip Amid Higher Costs

United Spirits Ltd reported a 4.3% decline in net profit for the December quarter due to increased expenses and severance costs. Despite facing financial challenges, the company saw a revenue rise to Rs 7,732 crore. CEO Hina Nagarajan remains optimistic about future prospects amidst a growing demand environment.

United Spirits Ltd on Thursday announced a 4.3 percent drop in consolidated net profit for the December quarter, primarily due to heightened expenses and severance costs from a closed unit. The profit stood at Rs 335 crore, down from Rs 350 crore in the same quarter the previous fiscal year, as detailed in a regulatory filing.

The company's consolidated revenue for the reviewed quarter increased to Rs 7,732 crore, surging from Rs 6,962 crore in the year-ago period. Total expenses for this quarter were Rs 7,256 crore, compared to Rs 6,555 crore a year earlier, highlighting the financial challenges faced by United Spirits Ltd.

Amid a moderately improving, yet cautious demand environment, CEO and Managing Director Hina Nagarajan emphasized the company's achievements during the festive season. Moving forward, Nagarajan remains optimistic about India's long-term consumer potential despite immediate short-term caution. The company also accounted for Rs 65 crore in exceptional items related to severance costs of a closed unit as of December 31, 2024.

(With inputs from agencies.)