G M Brew

GM Breweries, like always is amongst the first to announce quarterly results and it posted a good set of numbers for Q3FY16. It ended the quarter with an excellent 66% (QoQ) and jaw dropping 160% (YoY) rise in net profit at Rs.16 crore. Margins have improved significantly from 17.8% to 24.1% (QoQ) and this was mainly on account of lower raw material costs. Operating costs were down 9%. Operating profit has risen over 34% at Rs.22 crore. Its 9MFY16 net profit at Rs.41 crore is already over twice the FY15 net profit of Rs.19 crore. The lower base effect is also at play but overall, great performance.

A debt free company, it is engaged in the activities of manufacturing and marketing of Alcoholic Beverages; such as Country Liquor (CL) and Indian made Foreign Liquor (IMFL). It is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share. Its brands are GM Santra, GM Limbu Punch, GM Dilbahar Sounf and GM Doctor. The company is essentially is a “country” liquor maker and thus has a huge customer base though margins are lower than the other big branded liquor companies, which is made up through higher volumes. Promoters stake at end of Q3FY16 stands at 74.43%.