ICICI Direct: Globus Spirits - Multiple Triggers In Place
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ICICI Direct Report
Globus Spirits Ltd. reported strong results owing to continued improvement in margin profile in spite of weaker operating leverage.
Revenues fell mere 22% YoY to Rs 230 crore, compared to the liquor industry, in general (fell closer to 45-55% levels), mainly owing to stronger Indian made Indian liquor performance due to better state mix (Haryana performed well), higher bulk realisation (up 14%) and better-than-expected performance of newer product launches.
Ebitda grew 46% YoY to Rs 39 crore mainly due to strong expansion in Ebitda margin (clocked highest ever Ebitda margin of 17.1% versus 9.1% in Q1 FY20, led by higher gross margins, lower fuel, freight and power cost).
Subsequently, profit after tax grew 1.6 times to Rs 19 crore.
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