GM Breweries cracks 7 per cent post Q2 numbers

Indian spirits maker, GM Breweries posted its second quarter results post market hours on Thursday. Despite company seeing an increase in its profitability by 17.92 per cent Y-O-Y, the stock came under pressure due to operational performance.

Sales for the quarter in review has seen a decrease of 6.50 per cent on a yearly basis to Rs 87.69 crore as against Rs 93.78 crore in the corresponding quarter of the last fiscal. 

On operation front, the alcohol maker has seen a de-growth in EBITDA as it slipped into negative zone to Rs 17.11 crore compared to Rs 18.11 crore i.e a decline of 5.52 per cent. Operational performance was affected by increase in employee and raw material expenses which increased by 42.42 per cent and 1.35 per cent respectively. Margins for the quarter remained flat with a positive bias at 19.51 per cent.

Bottom-line has increased by 17.92 per cent, courtesy increase in the exceptional income by 4100 per cent.

Going forward we expect a good performance in terms of quarterly results owing to festive and holiday seasons when the demand would see an uptick.

Reacting to the Q2FY17 numbers shares of GM Breweries dropped more than 7 per cent to hit an intra-day low of Rs 582.60 on NSE.