- 15 Nov 2022
- ICICIdirect Research
HIGHER POWER AND FUEL COSTS IMPACT GLOBUS SPIRITS QOQ
GLOBUSSPR - 911 Change: 12.85 (1.43 %)News:
Globus Q2FY23 net revenues remained flattish QoQ to Rs 480 crore, as higher bulk volumes (up 6% QoQ to 4.33 crore litres) and higher bulk realisation (up 2% QoQ to Rs58.5 per litre) was negated by lower IMIL volumes (down 20% to 3.2 million cases). EBITDA margin contracted 450 bps to 9.4%, which led to 35% QoQ decline in absolute EBITDA to Rs 45 crore. Subsequently, PAT declined 58% to Rs 22 crore
View:
The steep decline in IMIL volumes is led by increased focus on profitability in Haryana (which led to softening of market share). Gross margins remained rangebound QoQ (~41%), however, EBITDA impacted due to higher fuel and power costs. Negative product mix was negated by higher bulk realisation. At end of Q2FY23, the total installed capacity is 25 crore litres. The management expects full year contribution of IMFL to 6% of consumer segment from 3% currently.
Impact:
Negative