McDowell registers 90 per cent jump in Q1 net profit
McDowell has reported a 90% jump in net profit at Rs 10.38 crore for Q1 ended June 30, 2005 from Rs 5.46 crore in the same period last fiscal.
McDowell and Company Limited of the UB Group has reported a 90 per cent jump in net profit at Rs 10.38 crore for the first quarter ended June 30, 2005, from Rs 5.46 crore in the same period last fiscal.
Pre-tax profits grew even higher by 96 per cent at Rs 17.1 crore as against Rs 8.7 crore in Q1 of the previous financial year, the company said in a statement in Bangalore.
"This spirited performance is despite a period of continued increase in the cost of its primary raw materials, due to a failed sugarcane crop and increased dosage of alcohol in fuel", it said.
Volumes of McDowell's lead brands grew 23 per cent from 4.5 million to 5.5 million cases in Q1, it said.
Increased input costs continued to render certain low-end brands unviable and consequently overall sales for the quarter stood at 6.7 million cases, compared to 6.37 million cases sold during the same period last year. This, it said, had led to a 17 per cent increase in net sales to Rs 326 crore from Rs 278 crore in the same period last year.
According to the company, the impact in McDowell's accounts of the increased cost of raw materials is about Rs 24 crore over Q1 last year, when prices of the raw materials had only started moving up.
Pursuant to the open offer made by the company along with its subsidiaries and persons acting in concert, United Spirits Limited, a wholly owned subsidiary of McDowell, acquired 25 per cent of the paid up equity capital of Shaw Wallace and Company Limited. Financial close of the transaction took place during this quarter, it said.