Key highlights of the call

The net sales for Q1 FY18 grew by 34% to Rs 256.50 crore. The net profit declined by 80% to Rs 1.57 crore,

Robust ramp-in volumes at the recently commissioned Greenfield Distillery at West Bengal in the first quarter of full operations. One of the largest grain-based state-of-the-art distilleries in the state with a capacity of ~33 million BL. Healthy demand-supply scenario is enabling the Company to rapidly scale up volume. Operating at near optimal capacity utilization levels in the first quarter of full operations – this would further improve in the upcoming quarters. Receiving encouraging response for the maiden IMIL brand - Goldee. More launches / brand variants underway. Investment in West Bengal playing out as expected – Grain prices are lower than North India, while ENA prices are higher thereby improving the spread between grain and ENA price

Update on Bihar Distillery:- Based on the decision of the High Court, the Company has applied for renewal of license with Registration, Excise and Prohibition Department, Government of Bihar, Patna on May 05, 2017. The said application is currently pending with the department and GSL is confident of recommencing the operations in the financial year 2017-18 after the license is renewed

Significant increase in Bulk alcohol volumes led by commissioning of the West Bengal facility resulted in healthy topline growth. Growth in Rajasthan revenues further aided the topline performance – Strong revenue growth achieved despite uncertainty around GST implementation

Overall profitability was impacted due to lower IMIL volumes in Haryana as well as lower realization in the DDGS segment.

Revenues from manufacturing business stood at Rs 153.8 crore in Q1 FY18, higher by 61% Y-o-Y. Share of manufacturing business stood higher at 60% in Q1 FY18 supported by production commencement at the West Bengal facility

Share of consumer business stood at 40% in Q1 FY18 against 51% in the same period last year. Consumer Business reported a growth of 2% during the quarter.

Bulk alcohol volumes increased by 98% owing to healthy contribution from the recently commissioned West Bengal facility. This was supported by 27% volume growth in IMIL in Rajasthan

IMIL Revenues stood at Rs. 102.7 crore, higher by 2% Y-o-Y. Healthy growth in Rajasthan (+29%) partially negated the impact of volume de-growth in Haryana

IMIL volumes in Haryana declined owing to:- Delay in awarding retail licenses due to shops shifting from the highways (Supreme Court order), Reduced dealer & distributor discounts impacted volumes – to enhance profitability from the state going forward.

Franchise Bottling volumes stood at 0.734 mn cases vs. 0.788 mn cases in Q1 FY17. West Bengal positively contributed to the overall Franchise IMFL volumes which was cascaded by de-growth in Rajasthan and Haryana attributable to lower focus on regular segment by large IMFL companies

Revenues from Others Segment led by DDGS stood at Rs. 216.4 mn, down by 3% year-on-year

Investment in West Bengal playing out as expected – Grain prices are lower than North India, while ENA prices are higher thereby improving the spread between grain and ENA price

Grain prices lower while ENA prices are high. As such, spread is beneficial to company.

IMFL brand will be launch in Karnataka and Pondicherry. It will be niche brand and will be available at few retail outlets.

DDG relation decline and lower Haryana sales impacted EBITDA .

Outstanding debt is Rs 252 crore

ENA and glass cost increase – The Company's ENA is grain based which is GST tax free. Little impact due to GST on ENA and will pass on to buyers.

Country liquor in Rajasthan - discussion with government for price hike.

West Bengal – received price hike due to GST

Haryana – price is too high in Haryana. Retailers have good margin, so now margin will be rolled back.

Impact of GST on the company – not meaning full impact on EBITDA as long as Rajasthan price hike comes.

In UP – most of ENA producer wanted price hike due to increase in molasses prices.

Bihar plant is completely shut down at this time. The company is incurring fixed cost. It's not a meaningful number.

West Bengal - largely producing bulk alcohol. IMIL launch in WB in Q1. Coming Q2 and Q3 good volume expected from IMIL. Margin in West Bengal will increase due to plant running at good capacity, bulk alcohol margin will expand in Q2 and Q3, and afterward it will stabilized.

Margin for industrial alcohol – depends on grain prices.