<p>India’s largest spirits maker United Spirits Limited (USL), on Friday said it plans to sell off non-core and non-profitable subsidiaries to recover its losses and reduce net debt.</p>.<p>As on March 2018, the company's net debt stood at Rs 3,265 crore.</p>.<p>Addressing shareholders at the 19th annual general meeting of United Spirits Limited, Chairman of the company Mahendra Kumar Sharma said the company has 10 non-operating subsidiaries out of a total of 18 subsidiaries. Of this, only 14 subsidiaries are making losses, while the remaining four make a nominal profits, which includes Royal Challengers Sports Private Ltd. Dring 2017-18, they reported a combined profit of Rs 90 crore.</p>.<p>It also has one associate company. The company is looking to sell off non-core subsidiaries so as to reduce its losses.</p>.<p>For the year ended March 2018, USL had a consolidated net loss of Rs 3,880 crore compared to Rs 4,524 crore in the previous year. “It will take at least a couple of years to reduce our losses. Until such time, the company cannot give any dividend to shareholders,” Sharma said.</p>.<p>For the year ended March 2018, USL reported a net revenue of Rs 8,170 crore. Its EBIDTA stood at Rs 1,021 crore.</p>.<p>Recently, the company came out with its maiden issue of non-convertible debentures amounting to Rs 750 crore to refinance existing higher cost debt of Rs 500 crore resulting in an increase in long-term debt. The company used profit from operations, proceeds from sale of non-crore assets amounting to Rs 1,056 crore. This reduction in debt together with renegotiation of borrowing rates and a favourable mix of debt reduced the total interest cost of Rs 108 crore during the financial year.</p>.<p>Replying to shareholders’ demand for payment of dividend, Sharma said “The Companies Act, 2013 prevents loss-making companies from giving any dividend to shareholders. We have been making profits for a couple of years now. But, we still have an accumulated loss on our books.”</p>.<p>The only way for the company is to accelerate growth and achieve profitability consistently so as to wipe out the loss completely, he added.</p>.<p>United Spirits produces and sells around 78 million cases of alcohol. It has over 100 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka, gin and wine. It sells over 1 million cases annually covering 15 brands.</p>
<p>India’s largest spirits maker United Spirits Limited (USL), on Friday said it plans to sell off non-core and non-profitable subsidiaries to recover its losses and reduce net debt.</p>.<p>As on March 2018, the company's net debt stood at Rs 3,265 crore.</p>.<p>Addressing shareholders at the 19th annual general meeting of United Spirits Limited, Chairman of the company Mahendra Kumar Sharma said the company has 10 non-operating subsidiaries out of a total of 18 subsidiaries. Of this, only 14 subsidiaries are making losses, while the remaining four make a nominal profits, which includes Royal Challengers Sports Private Ltd. Dring 2017-18, they reported a combined profit of Rs 90 crore.</p>.<p>It also has one associate company. The company is looking to sell off non-core subsidiaries so as to reduce its losses.</p>.<p>For the year ended March 2018, USL had a consolidated net loss of Rs 3,880 crore compared to Rs 4,524 crore in the previous year. “It will take at least a couple of years to reduce our losses. Until such time, the company cannot give any dividend to shareholders,” Sharma said.</p>.<p>For the year ended March 2018, USL reported a net revenue of Rs 8,170 crore. Its EBIDTA stood at Rs 1,021 crore.</p>.<p>Recently, the company came out with its maiden issue of non-convertible debentures amounting to Rs 750 crore to refinance existing higher cost debt of Rs 500 crore resulting in an increase in long-term debt. The company used profit from operations, proceeds from sale of non-crore assets amounting to Rs 1,056 crore. This reduction in debt together with renegotiation of borrowing rates and a favourable mix of debt reduced the total interest cost of Rs 108 crore during the financial year.</p>.<p>Replying to shareholders’ demand for payment of dividend, Sharma said “The Companies Act, 2013 prevents loss-making companies from giving any dividend to shareholders. We have been making profits for a couple of years now. But, we still have an accumulated loss on our books.”</p>.<p>The only way for the company is to accelerate growth and achieve profitability consistently so as to wipe out the loss completely, he added.</p>.<p>United Spirits produces and sells around 78 million cases of alcohol. It has over 100 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka, gin and wine. It sells over 1 million cases annually covering 15 brands.</p>