- May 18, 2017 / 2 min readKingfisher-maker posted profit of Rs 6 7 crore from Rs 52 crore in the corresponding quarter Revenue for the same period grew by 2 7 per cent to Rs 2562 crore
India's largest brewer, United Breweries has reported a 87 per cent decline in profit for the quarter ended in March 2017 from a year ago on the back of shutdown of Bihar operations, destocking by liquor by retailers due to highway ban anticipation and increase in duty fee.
Kingfisher-maker posted profit of Rs 6.7 crore from Rs 52 crore in the corresponding quarter. Revenue for the same period grew by 2.7 per cent to Rs 2562 crore.
In a BSE filing, the company said, "The Supreme Court order directing all outlets within 500 meters to close from the 1st of April has had a significant impact on the industry in quarter 4. The industry saw a decline of about 13 per cent. We expect the impact of this ban to be most significant in the first two quarters of this fiscal year."
The company said in a separate filing that brewing operations at its manufacturing unit in Bihar have been discontinued due to prohibition of alcohol in the state.
Industry volume growth slipped by 5%, whereas UBL saw a 2.5% decline in volume.
United Breweries, which has 52 per cent market share, recently launched strong beer Kingfisher Storm and has plans to launch about half a dozen international brands to boost the declining market.
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