Globus Spirits hits new high; advances 28% in a week on strong Q4 results

In Q4FY21, the company's Ebitda margin grew by over 1,140 bps YoY to 24.9 per cent, on account of higher share of consumer business, and better realizations on ENA and ethanol

Shares of Globus Spirits hit a new high of Rs 459 after rallying 9 per cent on the BSE in intra-day trade on Wednesday. The stock has now surged 14 per cent in the past two trading days after reporting a more-than-doubled consolidated profit after tax (PAT) at Rs 50.63 crore in the March quarter (Q4FY21), on the back of strong revenue. It had PAT of Rs 19.35 crore in the year-ago quarter.

In the past one week, the stock of the breweries & distilleries company has advanced 28 per cent, as compared to 1 per cent rise in the S&P BSE Sensex.

In Q4FY21, the company’s gross revenue grew 66 per cent year on year (YoY) at Rs 491 crore, backed by increase in both volume and value, mainly in the consumer business segment. The share of consumer business (value segment) increased by around 900 basis points (bps) YoY from 35 per cent in Q4FY20 to 44 per cent in Q4FY21.

Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin grew by over 1140 bps YoY to 24.9 per cent in Q4FY21 from 13.5 per cent in Q4FY20, on account of higher share of consumer business, and better realizations on ENA (Extra Neutral Alcohol) and ethanol. The company said higher EBITDA margin coupled with lower finance cost drove profitability at PBT (profit before tax) level.

Globus Spirits is the largest grain based ENA manufacturer in India with a capacity of 160 million litres. The company is reputed IMFL (Indian-made foreign liquor) players are major customers for bulk alcohol. It is presence in Rajasthan, Haryana, Bihar and West Bengal.