Pioneer Distilleries zooms 20% post Q4 results

The company reported a net profit of Rs 208 million in Q4FY18 against a net loss of Rs 112 million in year ago quarter.

Shares of Pioneer Distilleries were locked in upper circuit of 20% at Rs 264 per share, also their 52-week high on the BSE, after the company reported a net profit of Rs 208 million, on back of government grant of Rs 481 million for the quarter ended March 2018 (Q4F718). The company, a subsidiary of United Spirits, had a net loss of Rs 112 million in the same quarter year ago.

Operational revenues during the quarter rose 4.6% at Rs 362 million against Rs 346 million in the corresponding quarter of previous fiscal.

Pioneer Distilleries said it is entitled to government grant from the State of Maharashtra for setting up projects in notified rural area under two phases. These grants are receivable in the form of value added tax (VAT) refunds.

“Under Mega Phase II project, the Company is entitled to Government grant amounting to Rs 2,600 million. Upon receipt of eligibility certificates for Rs 1,805 million during the year, the Company has recognised Rs 481 million and Rs 1,668 million representing present value of such receivables as Government Grant income in the statement,” it added.

The trading volumes on the counter more than doubled with a combined 987,148 shares changed hands on the NSE and BSE. At 02:03 pm; there were pending buy orders for 88,874 shares on both the exchanges.