G. M. Breweries glitters as profitability increases in Q3FY16

G.M. Breweries (GMBL) recently declared its Q3FY16 results. The company's net sales increased by 17.99 per cent to Rs 92.94 crore in Q3FY16 as compared to same period in previous quarter. Its total expenditure increased by 7.22 per cent to Rs 69.12 crore in Q3FY16 on a yearly basis. GMBL's total expenditure increased predominantly due to a 31.22 per cent increment in other expenses amonting to Rs 5.38 crore during the quarter.

GMBL's EBITDA increased almost three fold to Rs 23.82 crore in Q3FY16 on a yearly basis due to 9.8 per cent reduction in raw material expenses during the quarter. The company's EBITDA margin expanded considerably with an expansion of 1499 basis points from 10.64 per cent in Q3FY15 to 25.63 per cent in Q3FY16. It's PAT also rose by 2.5 times to Rs 15.57 crore in Q3FY16 as compared to same period in previous fiscal year. GMBL's PAT margin expanded by 907 basis points to 16.75 per cent in Q3FY16 on a yearly basis.

Considering 9M financials, GMBL's net sales increased by 16.74 per cent to Rs 268 crore in 9MFY16 as compared to same period in previous fiscal year. The company's total expenditure decreased by 0.94 per cent to Rs 205 crore in 9MFY16 on yearly basis.Its EBITDA increased by 176.18 per cent to Rs 63 crore in 9MFY16 as compared to same period in previous financial year. GMBL's PAT increased by 3.17 folds to Rs 41 crore in 9MFY16 on a yearly basis.

GMBL's shareholding pattern indicates that DII holdings remained flat at 0.04 per cent during Q3FY16 as FII ( Foreign Institutional Investment entered into the company.Fidelity Northstar Fund acquired 2.33 per cent stake making its debut in September 2015 quarter. The stock price of the company is 11.83 per cent on bourses in early trades, and is trading at Rs 1079 on an intraday basis.

GMBL is engaged in the activities of manufacturing and marketing of alcoholic beverages, such as country liquor (CL) and Indian made foreign liquor (IMFL). The company’s brands include G.M.SANTRA, G.M.DOCTOR, G.M.LIMBU PUNCH and G.M.DILBAHAR SOUNF. It also has an automatic bottling plant at Virar, district Thane, in the state of Maharashtra with a capacity to produce about 50000 cases a day.