Globus Spirits Q3FY18 PAT slips 68 per cent; SC rules in company's favour

Globus Spirits reported its results for the quarter ended December 31, 2017 on Wednesday after market hours.

The company's standalone revenue for the quarter came in at Rs 454.44 crore, registering an increase of 42.5 per cent YoY.

Its EBITDA for the quarter rose by 3.7 per cent YoY to Rs. 16.92 crore, with a corresponding margin contraction of 140 bps. The EBITDA margin for the quarter stood at 3.7 per cent. This margin contraction was due to the sharp jump in excise duty and other expenses by 91 per cent and 32 per cent YoY, respectively.

The PAT for the quarter came in at Rs. 1.27 crore, a decline of 67.9 per cent YoY. This was due to sharp hike in depreciation and interest expenses by 40 per cent and 95 per cent YoY, respectively.

The Supreme Court has recently dismissed the SLP petition filed by the Bihar government against the company. This comes after the Bihar government banned liquor consumption in the state and the company’s manufacturing plant remained under stress. With the SC verdict in its favour, Globus remains confident of recommencing its operations.
  
Globus Spirits is India’s largest grain-based distiller with a capacity of 150 million bulk litres. It enjoys 32 per cent market share in Rajasthan and 11 per cent in Haryana. It is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), bulk alcohol and contract bottling for established IMFL brands.

Today, the stock opened at Rs 149 and touched an intra-day high and low of Rs 149.65 and Rs 145, respectively, and finally closed at Rs 147.55, on the BSE.