Highlights of the meet

For last 3 yrs, beer industry has grown at CAGR of 3%.

Karnataka, Maharashtra and Rajasthan markets has seen some pressure in Q2 and has taken corrective actions, which should reflect in ensuing quarters

Gross realization per case improved in Karnataka, Punjab, Madhya Pradesh and Goa due to price hike taken.

In Maharashtra (ex-Mumbai), LBT was imposed effective August 15 and the company has initiated price hike in select brands from September 8 and all other brands effective October 1. There is hike of Rs 10 in 650 ml bottle and Rs 5 in 350 ml bottle. Delay in price hikes for 45 day period had a one-time impact of Rs 7 crore on the company's Q2 profitability. Price hikes in Maharashtra just about cover for tax increase effective October with marginal hit to the P&L

On cost inflation - the mgmt said portion of increase would continue for H2 FY17.

Started process for initiating price hike in the states where price hike is necessary.

Capex guidance for FY17 stands at Rs 200-250 crore to be spent on brownfield expansion and maintenance

Gross debt as at end Q2 stood at Rs 600 crore.

GST impact is expected to be far less negative than expected earlier as most Alcobev majors have hired consultants to advocate the likely impact on input costs to GST council.