GM Breweries hits 52-week low on weak June quarter earnings

The company reported a 27 per cent decline in net profit at Rs 16 crore in the first quarter of fiscal 2019-20, due to higher raw material cost.

Shares of GM Breweries hit a 52-week low of Rs 455, down 8 per cent, in Friday's early morning trade on the National Stock Exchange (NSE), after the company reported a 27 per cent decline in net profit at Rs 16 crore in the first quarter of fiscal 2019-20 (FY20), due to higher raw material cost.

The company engaged in breweries & distilleries had posted a profit of Rs 22 crore in June 2018 quarter.

Operational revenue grew 6 per cent at Rs 430 crore against Rs 404 crore in the corresponding quarter of previous fiscal. Ebitda (earnings before interest tax depreciation and amortization) contracted 238 bps at 6.24 per cent from 8.62 per cent.

“The drop in PBT (profit before tax) during the quarter is mainly attributed to unprecedented rise in the cost of company's main raw material namely rectified spirit and to a certain extent to increase in prices of packing materials,” GM Breweries said.

At 09:35 am, the stock was trading 4 per cent lower at Rs 472 on the BSE, as compared to a 0.26 per cent rise in the S&P BSE Sensex. A combined 56,675 shares have changed hands on the counter on the NSE and BSE so far.