GM Breweries stock tumbles on drop in profitability

GM Breweries declared its Q3FY17 results on Thursday after market hours. The company’s revenue increased 4.96 per cent to Rs 97.55 crore in Q3FY17 as compared to the same period in the previous financial year. Its operating profit dropped 34.89 per cent to Rs 15.51 crore in Q3FY17 on a yearly basis. GM Breweries’ net profit also reduced 36.42 per cent to Rs 9.9 crore in Q3FY17 as compared to the same period in the previous fiscal year.

On the nine-month financial front, GM Breweries’ topline has increased 2.37 per cent to Rs 274 crore in 9MFY17 on a yearly basis. However, the company’s EBITDA decreased 17.03 per cent to Rs 52.55 crore in 9MFY17 as compared to the same period in the previous fiscal. Its bottomline was also reduced by 17.83 per cent to Rs 33.6 crore in 9MFY17 on a yearly basis.

The share price of GM Breweries decreased 5.85 per cent on the bourses in the early hours of trading and is trading at Rs 486.3 on an intra-day basis. In the last one month, the share price declined 6.9 per cent. The company has given negative returns of 44.75 per cent in the last one year.