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Shares of Globus Spirits were locked at 5 per cent lower circuit, at Rs 1,151.65, on the BSE on Monday after the company reported lower capacity utilisation on a quarter-on-quarter (QoQ) basis at 90 per cent in September quarter (Q2FY22). This was on account of unplanned shutdown at Bihar facility due to floods and planned shutdown for maintenance at Haryana and West Bengal facilities. The company said the shutdown led to an estimated contribution loss of Rs 25 crore.
Globus Spirits reported 52 per cent year on year (YoY) jump in its consolidated profit after tax (PAT) at Rs 52.50 crore, due to higher sales. Lower finance costs, on account of debt reduction, and lower cost of debt (5.95 per cent after subvention) further aided the growth in net profit.
The company’s gross revenue during the quarter grew 30 per cent YoY at Rs 594 crore, backed mainly by higher growth in consumer business (net revenue of Rs 181 crore in Q2FY22), led by increasing share of value plus segment liquors.
“The earnings before interest, taxes, depreciation, amortization (ebitda) margin grew by 412 basis point (bps) YoY to 23.3 per cent in Q2FY22 and remained within expected rang, on account of higher share of value plus liquor segment in consumer business and better realizations,” the company said.
It further said it has received 10 years long term volume commitment of Ethanol for the states of Haryana, Jharkhand, West Bengal and Odisha for around 260 KL.
“The company plans to launch Black lace rum and a Whisky brand in Rajasthan in Q3FY22 and two new IMIL brand launches in the state of Haryana. It also plans to re-introduce Goldee IMIL brand in WB and few other IMIL brand launches in Q3FY22. Key triggers to watch remain the on-track completion of its WB manufacturing unit (would raise the capacity by 25 per cent) and the capex program henceforth (with regards to marketing its premium brands),” ICICI Securities said in a note.
With today’s 5 per cent decline, the stock of Globus Spirits has corrected 24 per cent from its 52-week high level of Rs 1,509 touched on October 12, 2021. Till 11:09 am, a combined 1.2 million equity shares had changed hands and there were pending sell orders for 24,000 shares on the NSE and BSE.
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