GM Breweries at a new low

GM Breweries hit a new 52-week low today at Rs.459.85, going down almost 7%. This was on the back of its disappointing earnings for Q1FY20.

The company posted a 27% (YoY) decline in net profit at Rs.16 crore and this is attributed directly to the 22% rise in raw material prices.

Operational revenue showed a 6% rise at Rs.430 crore.

Impact of the raw material price is seen on the operating profit too, which fell 24% at Rs.26 crore while EBITDA margins contracted from 8.62% to 6.24%.