Globus Spirits, United Spirits, Pincon Spirit fall after SC bans sale of liquor on highways

NEW DELHI: Shares of liquor companies slipped up to 6.33 per cent in morning trade on Thursday after the Supreme Court ordered a ban on sale of alcoholic drinks on national and state highways across the country.

Reacting on the news, share prices of Globus Spirits tanked as much as 6.33 per cent to Rs 91 at around 10.50 am (IST). The scrip opened the day at Rs 93.35 and touched a high and low Rs 98.60 and Rs 91, respectively, in intraday trade during the first half of the day. United Spirits and Pincon Spirit declined 1.30 per cent and 3.50 per cent, respectively.

At 11.30 am, shares of Globus Spirits, United Spirits and Pincon Spirit were trading lower by 4.53 per cent, 0.17 per cent and 3.38 per cent at Rs 92.75, Rs 1926.80 and Rs 60, respectively.

The Supreme Court said existing licences of liquor shops on highways will not be renewed after March 31, 2017, reports said.

For the quarter ended September 30, 2016, United Spirits reported 7.69 per cent rise in net sales at Rs 2,037.70 crore against Rs 1,892.26 crore in the corresponding quarter last year. Net profit of the company increased 15.86 per cent on a year-on-year basis to Rs 82.54 crore. Pincon Spirit reported 61.92 per cent rise in bottom line figures on 34.60 per cent yoy increase in topline during July-September quarter.

However, Globus Spirits reported 97.62 per cent decline in net profit figures at Rs 0.03 crore in Q2FY17 against Rs 1.26 crore in Q2FY16.