New Delhi : The board of United Spirits approved reporting of erosion of more than half of its peak networth to Board of Industrial and Financial Reconstruction (BIFR), the tribunal for sick companies. The spirits maker, whose brands include Signature, Bagpiper, Antiquity and Royal Challenge, had registered a string of losses for the last four years.
The company is now controlled by world’s largest spirits maker Diageo, which had acquired an additional 26% shares in USL for Rs 11,448.91 crore in July with an aim to take its total stake in the Indian firm to 54.78 %.
Earlier this month, liquor baron Vijay Mallya was re-elected as non-executive director and chairman of United Spirits.
United Spirits Ltd (USL) reported a standalone net loss of Rs 55.58 crore for the three months ended June 30. It had posted a net profit of Rs 118.13 crore during the same period of the previous fiscal.
Total income declined by 10.97 per cent to Rs 1,923.90 crore during the quarter, as against Rs 2,161.05 crore for the same period of previous financial year. USL shares closed at Rs 2,553.20 apiece on the BSE, up 7.45 per cent from its previous close.
