Part of Vijay Mallay's UB group, United Spirits said that it has seen a decline in its profit for the quarter ending June 30.

UB is the second largest spirit make in the world and has strong brands in the market. It is also the sponsor of the IPL team Royal Challenger's Bangalore.

Meanwhile, figure show that the profits have gone down by 31.83 per cent for the June quarter and stood at Rs 121.05 crore. Last year, the figures stood at Rs 177.59 crore.

However, the income of the company went up by 17.83 per cent to end at Rs 1,470.61 crore which is more than Rs 1,248.05 crore that it had last year.

In a statement the company said, "Sales volumes were at 26.7 million cases, up 6 per cent over the comparable period of the previous fiscal."

One of the, major reason for this was the rising cost which was pushed further due to high expenditure in advertising. During the quarter, spend in this area was Rs 139 crore as against Rs 88 crore last year.

Expansion in business was the other factor that increased costs.