GM Breweries has slumped down badly today, almost like suffering from a hangover after a heady party. The stock opened lower at Rs.99 and currently remains 4% down.

The company disappointed the street and analysts with a poor set of numbers for Q2FY15. Its net profit for the quarter came in at a dismal Rs.2 crore, down from Rs.6 crore in Q2FY14 and Rs.4.5 crore in Q1. The growth in sales was muted, rise of 7% (YoY) and flat sequentially at Rs.75 crore.

What really dented the bottomline was the surge in operating costs, up 16% (YoY) and this was led by raw material costs, which rose 28% and packing cost rose 17%. The increase in price of rectified spirit led to the jump in raw material costs.