“Urban consumer sentiments seem to be rebounding and progressing with GST reforms that will hopefully add disposable income, which is good for categories across, especially in indulgence. We have closed a strong quarter from both top and bottom line. Maharashtra will remain a challenge.,”Someshwas told analysts, adding that the second half of the fiscal year would be “a lot more challenging” due to regulatory headwinds in Maharashtra and Andhra Pradesh, even as the company restructures its value chain to stay competitive.
Despite being the world’s most populous country with more than 1.4 billion people, India’s drinking population is estimated at around 300 million, with nearly half consuming low-cost or unbranded liquor.
The mass-premium segment, once a key growth driver in whiskey, rum and brandy, has come under pressure due to rising costs and local competition.
However, USL’s net profit rose 41% year-on-year to Rs472 crore in the July–September quarter, driven by higher premium brand sales, favorable pricing, and efficiency gains. Sales from the “prestige and above” segment —which includes Johnnie Walker and the homegrown single malt Godawan rose 12.4%, accounting for nearly 90% of total sales.
Maharashtra in July sharply raised excise duties on Indian-made foreign liquor (IMFL), leading to a substantial increase in retail prices for consumers. Duties on country liquor and imported premium spirits were also raised, while the excise duty on beer and wine remained unchanged.Rival Pernod Ricard too said its net sales grew 3% during the quarter negatively impacted by the excise policy changes”The 50% increase in excise tax from 300%-450% leads to a significant increase in consumer prices at circa 35% increase, which is having a consequential impact on demand. Elsewhere, India sees strong sales growth, both on Royal Stag and especially on international brands led by Jameson. For the full year, we are expecting the excise policy change to continue to weigh on our overall sales performance, though with continued favorable and dynamic underlying trends,” Pernod Ricard CFO Helene de Tissot told investors.
Equitas Small Finance Bank swings to Rs 24 crore profit as provisions fall
Sharply lower provisions helped Equitas Small Finance Bank report a return to profitability with Rs 24 crore net profit in the second quarter of the fiscal after making Rs 224 crore net loss in the preceding three-month period. The asset quality remained stable.
The net profit was almost double as compared with a year-ago period’s Rs 13 crore.
Its operating profit for the period under review however stood 31% lower at Rs 241 crore as against Rs 350 crore as expenditure rose sharply.
The bank’s gross non-performing assets ratio remained flat at 2.92% at the end of September as compared to end-June. Gross NPA was 2.95% a year ago.
