GM Breweries shed 2.91% to Rs 395 after the liquor maker's standalone net profit fell 43.52% to Rs 11.21 crore on 38.23% decrease in revenue from operations to Rs 262.30 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) tumbled 35.52% to Rs 14.99 crore in Q2 September 2020 as against Rs 23.25 crore in Q2 September 2019. Total tax expense for the quarter jumped 11.17% at Rs 3.78 crore as against Rs 3.40 crore in Q2 September 2019. The Q2 earnings were announced during trading hours today, 8 October 2020.
The company's operations were closed from 23 March 2020 to 20 May 2020. The operations restarted partially from 20 May 2020. The counter sales outside Mumbai & MMR region were started from 5 May 2020 & the counter sales in Mumbai Thane & several other region were started from 5 August 2020. The bars and restaurants in Maharashtra were not permitted to operate till 30 September 2020.
Due to lockdown, the sale in Q2 September 2020 quarter reduced by 7,58,977 boxes (66.44 lakh bulk litre) compared with Q2 September 2019. This has resulted in eventual reduction of profit at EBIT and net profit level.
GM Breweries is engaged in manufacturing and marketing of alcoholic beverages such as country liquor (CL) and Indian made foreign liquor (IMFL).
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