United Breweries net profit falls 93.87%

BANGALORE: United Breweries (Holdings), the investment arm of the UB Group, posted 93.87% drop in net profit to Rs 66 lakh in the second quarter of the financial year 2011-12. It’s net profit was dragged down from Rs 10.77 crore in the comparable period because of higher interest charges.

Interest charges were higher by 114% in the second quarter to Rs 51.93 crore. This was despite a 25.3% year-on-year increase in net sales from Rs 78.36 crore to Rs 98.19 core in the second quarter.

In October, the company sought shareholder nod through postal ballot to invest upto Rs 10 crore in subsidiary UB Realty. UB Realty, a joint venture company, was incorporated in September.

Bestride Consultancy was acquired by the company by the company in August and has become a wholly-owned subsidiary, a statement said. Another subsidiary Kingfisher Finvest had applied to the Reserve Bank of India for registration as a non-banking financial company (NBFC).

In the quarter under consideration, United Breweries (Holdings) sold 8, 220 sq ft of office space in Bangalore-based property UB City to a group company.

The company’s results were announced after market hours on Tuesday.