United Breweries Limited (UBL), the brewery arm of UB Group best known for Kingfisher beer, has posted a healthy 75 per cent growth in net profit to Rs 34.2 crore for the second quarter of Fy13 compared to the corresponding quarter in the previous fiscal. The topline surged by 18 per cent at Rs 873 crore.
The company's management, explaining the growth in net profit, said that the company witnessed a healthy growth in most of its major markets such as Maharashtra, Karnataka, Rajasthan, Kerala, Bihar and Uttar Pradesh. UBL has been also sweat its assets giving a fillip to its bottomline as it increased the adoption of its patented bottle system, thus driving down costs of a key input costs, thus helping it offset inflationary trends in other key inputs.
The firm also said that the strong beer segment continues to drive overall overall UBL volumes with growth of 10 per cent, while mild beer volumes declined in line with the market by 4 per cent.
However, on a sequential quarter basis, the company saw its net profit drop 65 per cent as the topline fizzled out by 29 per cent. The company said it continued to face unfavourable ordering pattern of TASMAC in Tamil Nadu and change of government policies in Andhra Pradesh in September 2012.