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News: GM Breweries Q2FY24 net revenues grew 7% YoY to | 152 crore, while PAT was flat at |22 crore. EBITDA margins contracted 212 bps (likely due to higher raw material prices – Gross margins contracted 226 bps), leading to 4% de-growth in absolute EBITDA.
Views: Even as the result is on the expected lines, the stock corrected 10% post results. The reason can be attributed to increase in non-core areas such as investment property (₹ 162 crore in H1 vs ₹ 132 crore in FY23) and higher non-current investments (₹ 469 crore in H1 vs ₹ 446 crore in FY23), while payment of any dividend is still awaited. Capacity utilisation remains low and working cap requirement is also low for the business.
Impact: Negative