GM Breweries declared its Q3FY19 yesterday, the first in India Inc to do so. And despite being the best season, it reported a drop in net profit on account of increased expense.

The stock has been losing for the last 2 days and has fallen 15.41% in the period. The stock today touched an intraday low of Rs 630, down over 13%.

Comparing QoQ being a non-seasonal product, the performance for Q3FY19 is disappointing. Net sales was up 8.5% (QoQ) at Rs.449 crore but on account of a 10% rise in costs, first, the EBITDA was down 18% at Rs.25 crore, while margins slipped from 7.34% to 5.54%.

Net profit for the quarter was down 14% at Rs.17 crore. YoY net profit showed a 25% drop.

The company though remains largely debt free; its interest outgo for Q3 was at Rs.2 lakh.

Its net profit for 9MFY19 was at Rs.58 crore v/s FY18 net profit of Rs.73 crore.