News: Globus announced its Q4FY22 results. While the topline (net of excise) grew 34% YoY to Rs 479 crore, the EBITDA de-grew 5% YoY to Rs 84 crore (margins contracted ~720 bps YoY to 17.6%, mainly due to lower gross margins (42.1% vs 51.1% in Q4FY21). Subsequently, PAT de-grew 9% to Rs 49 crore.
Views: The company saw higher inflationary cost scenario during the quarter (higher fuel costs – grew 37% in FY22 and packing material cost – grew 40% in FY22). To mitigate impact, Rajasthan has announced price hike of Rs 39 per case for value plus segment and Rs 19 for value segment since April 1 , 2022. Also, Globus intends to procure more FCI broken rice, which fetches an incremental Rs 3 per litre realisation.
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