United Breweries Ltd Tuesday suffered a 25.26% downfall in its standalone net profit of Rs 67.92 crore in its Q419 results. The corresponding quarter last fiscal reported a Rs 90.88 crore net profit.
It’s total income for the quarter was Rs 3469.3 crore in March 2019 quarter, up by 5.84 percent in the same quarter a year ago.
The total expenses in the period stood at Rs 3363.13 crore in Q4 19, up 7.07% against Rs 3141.03 crore in the same Q4 18, said UBL in a regulatory filing to the BSE.
UBL in a statement said Bihar State Government (“the Government”) vide its notification dated April 5, 2016 had imposed ban on trade and consumption of foreign liquor in the State of Bihar. UBL had filed a writ petition with the High Court at Patna, requesting remedies and compensation for losses incurred because of the sudden ban, against which the Government opted for a special leave petition before the Supreme Court of India.
Furthermore, the Government did not renew brewery licenses for the financial year 2017-18 onwards and consequently UBL had to discontinue the production of beer at Bihar. All its inventories lying with Bihar State Beverages Corporation Limited (BSBCL) were drained / destroyed. The matter is still pending before the Supreme Court for final conclusion.
The Board of Directors of the Company has recommended a dividend of Rs. 2.50 per equity share of Re. 1 each amounting to Rs.7,969 Lakhs (inclusive of dividend distribution tax) for the year ended March 31, 2019.
The said dividend on equity shares is subject to approval at the scheduled annual general meeting and has not been recognised as a liability (including dividend distribution tax thereon) as at year end.
