G M Brew

GM Breweries held the mantle of being the first company for announcing its Q1FY17 numbers, the first almost always amongst all listed companies. And the performance was disappointing. Net profit for the quarter came in at Rs.12 crore, down 30% (QoQ) and down 25% on a YoY. Higher costs mainly on account of raw material and packaging cost, lower other income, led to this drop in bottomline. Also in Q4FY16, the company had an exceptional income of over Rs.3, which was not there in Q1. Net sales came in at Rs.89 crore, down 10% (YoY).

Post the 1:4 bonus, equity of the company now stands increased at Rs.14.62 crore, up from 11.71 crore.

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.