G M Breweries declared Q4 numbers, stock surged

G.M. Breweries (GMBL) declared its Q4FY16 results on Tuesday. The company's net revenue from operations increased by 17.71 per cent year on year (YoY) in Q4FY16 and reached to Rs 9172 crores from Rs 7792 crores in Q4FY15.

The EBITDA stood at Rs 2253 crores this quarter compared to Rs 1240 crores in Q4FY15, an increase of 81.69 per cent YoY. The EBITDA margin of company stood at 24.56 per cent this quarter compared to 15.91 per cent in Q4FY15. The substantial increase in EBITDA is on back of decrease in packaging and raw material consumption which decreased by 0.25 per cent YoY and the expenses are around 30 per cent of net sales. The net profit stood at Rs 1742 crores in Q4FY16 compared to Rs 572 crores in Q4FY15, an increase of 204 per cent YoY. 

The year ending consolidated net revenue from operations increased by 17 per cent and reached Rs 35966 crores compared to Rs 30743 crores for the same period last year. The net profit for year stood at Rs 5831 crores compared to Rs 1863 crores, an increase of 212 per cent for the same period last year. The substantial increase in net profit is on back of decrease in company’s raw material consumption and increase in its other income. The company removed the debt from its balance sheet this year. From around Rs 2700 crores in FY15 is stood at zero for this financial year.

On valuation front, the stock of company is trading at trailing twelve month (TTM) P/E of Rs 27 compared to industry P/E of 63.18. The stock of company is trading at Rs 1068 an increase of 4.07 per cent from the previous close. 

GMBL is engaged in the activities of manufacturing and marketing of alcoholic beverages, such as country liquor (CL) and Indian made foreign liquor (IMFL). 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.