GM Breweries Report Q2 Earnings: Weak Operational Performance

The shares of GM Breweries slid more than 8% after the company reported its second-quarter earnings. The quarterly earnings report reflected weak operational performance for the company.

The alcoholic beverages manufacturer reported a 7% revenue growth on a year-on-year basis at Rs 151.60 crores vs Rs 142 crores during the same period last year. Net profit saw a mild rise of 1.5% at Rs 22.40 crores vs Rs 22.70 crores on a yearly basis.

The company's operating profit or EBITDA declined by nearly 4% to come in at about Rs 30 crores vs Rs 31 crores last year. EBITDA margin also slipped by more than 200 bps at 19.6% vs 21.7% YoY.

GM Breweries stock's low price today was at Rs 721.25 per share, while its high price reached Rs 808.4 per share. The company has lost market capitalization of Rs nearly 120 crores post earnings report and is currently sitting on a total market cap of Rs 1,334 crores.

The GM Breweries stock has snapped its four-day gaining streak in today's trading session. The stock had risen 11% in the last four sessions before today.

The company is engaged in the activities of manufacturing and marketing alcoholic beverages, like country liquor and Indian made foreign liquor. It is the largest manufacturer of country liquor in Maharashtra with a sizeable market share and also contributes substantially to the state exchequer by way of excise duty and value added tax.