Q4 2024 Globus Spirits Ltd Earnings Call Transcript
Key Points
- Globus Spirits Ltd (BOM:533104) reported a 15% year-on-year increase in net revenue from operations for FY24, reaching INR2415 crore.
- The company has commenced commercial production at its new bottling unit in Uttar Pradesh, which is expected to boost brand presence and sales in the state.
- A joint venture with a Caribbean conglomerate aims to introduce a new beer brand in India by FY26, potentially expanding the company's product portfolio and market reach.
- The consumer segment witnessed robust growth, with sales volume increasing by 70% in Q4 and 84% year-on-year for the full year.
- The company is optimistic about using maize for ethanol production, which is expected to provide better margins, by-products yield, and environmental benefits compared to rice.
- The company experienced unprecedented low margins in Q4 FY24 due to a change in the raw material mix, specifically the discontinuation of rice supplies from SCI.
- Net debt increased to INR241 crores at the end of FY24, up from INR194 crores in FY23, due to expanded operations and new units.
- The Prestige & Above segment remains loss-making, with losses exceeding revenue growth, and profitability is not expected for another couple of years.
- The manufacturing segment faced significant headwinds due to raw material price volatility, resulting in lower capacity utilization and reduced bulk alcohol sales.
- The company is dealing with a tax demand of INR40.93 crores, of which INR25.11 crores has been deposited in protest, adding to financial uncertainties.
And gentlemen, good day, and welcome to the Globus Spirits Limited Q4 and FY24 earnings conference. (Operator Instructions) Please note that this conference is being recorded on the conference over to Mr. Shekhar Swarup, Joint Managing Director from Globus Spirits Limited. Thank you and over to you, sir.
Thanks. Good afternoon, everyone. Welcome to our Q4 and FY24 call earnings call. Our presentation has been uploaded on the exchange, and I hope you had a chance to go through it. There's been some technical difficulty with the network and the servers to upload the results. I'm informed that that's happening right now, and I apologize for the inconvenience caused.
Meanwhile, I will go ahead with the opening remarks to this call and in this quarter onwards, we now are analyzing our performance separately for our brands as well as manufacturing business in the presentation that was uploaded, you would have found a different way of analyzing the performance, and I hope you will continue to find it to find it
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