More Stories

Informist, Wednesday, Jan. 8, 2025

 

Please click here to read all liners published on this story

--UB to suspend beer supply to Telangana Beverages Corp immediately 
--UB: To suspend beer supply to Telangana co due to unpaid dues 
--UB: To cancel beer supply to Telangana co as prices not revised since FY20 

 

MUMBAI – United Breweries Ltd. Wednesday suspended the supply of its beer to Telangana Beverages Corp. Ltd. with immediate effect over unpaid dues, it said in an exchange filing. Shares of the company fell as much as 7.7% following the announcement, before paring losses. At 1424 IST, the stock was at INR 1,977.20 on the National Stock Exchange, down 4.7%.

 

In its earnings conference call for Apr-Jun, United Breweries said the amount outstanding from the Telangana government was INR 9 billion. For context, United Breweries' net profit for 2023-24 (Apr-Mar) was INR 4.09 billion and for FY23, it was INR 3.03 billion.

 

"We don't need to provide for it because it's a government operation, but it is impacting our working capital. And we have got an assurance that we will start getting back money. We've got some money back, it's very miniscule...," the company's Managing Director and Chief Executive Officer Vivek Gupta told analysts in July.

 

United Breweries also said Telangana Beverages hasn't revised the basic price of the former's beer since 2019-20, creating huge losses for the supplier.

 

United Breweries had reported a net profit of INR 1.32 billion for the September quarter on revenue of INR 47.42 billion.  End 

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ayushman Mishra

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.