Diageo's Indian unit posts lower quarterly profit on weak sales of lower-priced brands
Diageo's Indian unit posts lower quarterly profit on weak sales of lower-priced brands Oct 28 (Reuters) - India's United Spirits UNSP.NS reported a 2% fall in second-quarter profit on Wednesday, weighed down by weak sales of lower-priced brands amid regulatory changes
Diageo's DGE.L Indian unit posted a profit of 4.62 billion rupees ($48.54 million) for the quarter ended September 30, down from 4.72 billion rupees a year earlier
Quarterly revenue of the company, which sells Johnnie Walker and Antiquity whiskies, fell 2.7% to 70.01 billion rupees
Net sales value for United Spirits' popular segment declined 22.7%, like-for-like, hurt by a steep tax on non-local brands in the state of Maharashtra and recent policy shifts in Karnataka
Analysts at HDFC Securities had estimated a 30% volume decline in the popular segment due to the Karnataka policy shifts
United Spirits is among alcoholic beverage companies that have drawn tax scrutiny over alleged misclassification of bulk Scotch imports under the India-UK free trade pact
In a stock exchange filing on October 17, the company said its offices in multiple locations were searched as part of an "industry-wide exercise" by authorities, adding that it had provided all documents and clarifications sought
($1 = 95.19 Indian rupees)
(Reporting by Payel Das and Abhirami G)
((Payel.Das@thomsonreuters.com;))
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