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United Spirits Reports 4.3% Decline in Q3 Net Profit Amid Higher Expenses


Last Updated: 24th January 2025 - 05:34 pm
United Spirits Ltd (USL) reported a 4.3% decline in consolidated net profit for the December quarter of FY25, registering Rs 335 crore compared to Rs 350 crore in the same period last year. The drop was attributed to higher expenses and severance costs related to the closure of a production unit. Despite this, the company saw an improvement in revenue from operations, which rose by 11% year-on-year (YoY) to Rs 7,732 crore, up from Rs 6,962 crore in Q3FY24.
Total expenses during the quarter surged to Rs 7,256 crore, a significant increase from Rs 6,555 crore in the year-ago period. This rise was partly driven by a charge of Rs 65 crore under exceptional items for severance costs related to a closed unit.
Hina Nagarajan, CEO and Managing Director of USL, noted that the festive season and a swift scale-up in operations in Andhra Pradesh contributed positively to the company’s performance. "Amidst a moderate but sequentially improving demand environment, we have delivered a quarter in line with our aspirations buoyed by the festive season and fast scale-up in the state of Andhra Pradesh," she said during the earnings announcement.
On the outlook, Nagarajan expressed cautious optimism. "Looking ahead, we remain cautiously optimistic in the short-term while remaining committed to the long-term potential of the India consumer story," she added.
USL has focused on navigating rising expenses while leveraging the festive demand to support its operational growth. The company’s strategy includes strengthening its presence in key states like Andhra Pradesh and maintaining long-term investments in India's consumer growth story.
Conclusion
Despite a decline in profitability due to rising expenses and one-time costs, United Spirits demonstrated resilience by achieving a strong revenue increase in Q3FY25. The company remains optimistic about the potential for future growth, driven by its strategic market initiatives and focus on the evolving consumer landscape in India.
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