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The net sales for September 2016 quarter have de-grown by 3% to Rs 1038.55 crore. The company's volume remained flat while industry volume de-grew by 5%.OPM has decreased by 90 bps to 11.7% The net profit declined by 48% to Rs 27.05 crore.
Company Performance
Standalone performance for quarter ended September 2016
The net sales have de-grown by 3% to Rs 1038.55 crore. The company's volume remained flat while industry volume de-grew by 5%.
OPM has decreased by 90 bps to 11.7% due to rise in raw material cost. As a result, the operating profit has decreased by 10% to Rs 121.16 crore.
Other income has declined by 97% to Rs 0.79 crore. The interest paid declined by 31% to Rs 14.11 crore. The depreciation increased by 17% to Rs 70.21 crore. The profit before tax has decreased by 52% to Rs 37.63 crore.
The tax outgo decreased by 60% to Rs 10.58 crore. Tax rate declined from 33.93% to 28.12%. The net profit declined by 48% to Rs 27.05 crore.
Standalone performance for half year ended September 2016
The net sales have grown by 3% to Rs 2602.75 crore. The company's volume grew by 3% while industry volume remained flat resulting in marginal gain in marketshare. Volume growth was seen in all markets expects West where industry and the company saw decline. East saw double digit volume growth, thus recording considerable increase in marketshare. East was driven by West Bengal, Orissa and Jharkand. In Bihar, total prohibition declare on 5th April 2016 resulting in no revenue during the period.
In South, growth was driven by sales in Andhra Pradesh and Telangana, resulting in marketshare gain.
In the North, there was modest growth in Delhi and Haryana.
OPM has increased by 70 bps to 15.8% due to fall in purchase of stock in trade, sales promotion and other expenses. As a result, the operating profit has increased by 7% to Rs 412.09 crore.
Input cost were under pressure with the increase in the prices of barley and sugar, which were in part offset by improved efficiencies.
Other income has declined by 65% to Rs 14.40 crore. The interest paid declined by 29% to Rs 28.93 crore. The depreciation increased by 13% to Rs 133.89 crore. The profit before tax has decreased by 1% to Rs 263.67 crore.
The tax outgo decreased by 2% to Rs 89.56 crore. Tax rate declined from 34.36% to 33.97%. The net profit was flat at Rs 174.11 crore.
Other Developments
Bihar state Government has imposed ban on trade and consumption of foreign liquor in the state. The company has filled petition with High Court at Patna, requesting to set aside the said notification or defer its implementation or to direct the authorities to make payment for beer supplied till the date of aforesaid notification, refund all advance duties and taxes paid by the company and compensate for losses incurred on account of such abrupt notification. As of September 30, 2016, the company has fixed assets of Rs 246.15 crore, inventories of Rs 14.37 crore, trade receivables of Rs 24.93 crore and advances of Rs 17.69 crore at its units in Bihar.
Valuation
The total promoters holding in the company stand at 73.87%.
The scrip is trading around Rs 888.55 at BSE.
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