Liquor firm United Spirits Ltd (USL) on Wednesday reported a standalone net loss of Rs. 1,799.28 crore for the three months ended March 2015 on account of increasing debt and liabilities.
The company had run up a net loss of Rs. 5,380.10 crore in the same period of the previous fiscal, USL said in a filing to BSE.
However, total income of the company on standalone basis rose 5.55 per cent to Rs. 2,051.25 crore during the quarter under review, from Rs. 1,943.34 crore in the year-ago period.
During 2014-15, USL reduced the gap of its consolidated net loss to Rs. 1,687.71 crore as against a net loss of Rs. 4,489.08 crore a year earlier.
However USL’s total consolidated income from operation during 2014-15 came down 12.06 per cent to Rs. 9,334.99 crore, from Rs. 10,615.41 crore a year ago.
Its total income from operations on standalone basis also declined 5.48 per cent to Rs. 8,049.34 crore in 2014-15 from Rs. 8,516.60 crore in 2013-14.
USL suffered a loss of Rs. 3,083.51 crore in 2014-15 transferred from the previous year. However, in 2013-14, USL had got a surplus of Rs. 2,023.38 crore from the previous year.
“In relation to the standalone financial results of the company, during the financial year ended March 31, 2015, the company has recorded the provision for diminution on long-term investment in subsidiaries amounting to Rs. 361.81 crore and loans and advances to subsidiaries amounting to Rs. 354.35 crore,” USL said.
This provision arises primarily due to low capacity utilisation, negative margins or strategic shift in focus of business. The company has recorded the provision based on third-party valuations, it added.
It added: “In relation to the consolidated financial results, during the financial year ended March 31, 2015, the company has recorded the impairment of goodwill amounting to Rs. 120.90 crore. The company has recorded this impairment in line with the factors considered above.”
Meanwhile, in a separate filing, USL said its board has not recommended any dividend on the shares of the company for 2014-15.