Categories: Business & Economy

GM Breweries Q2 Results: Stock Jumps More Than 13% After Strong Revenue Growth, Margin Expansion

Shares of GM Breweries Ltd. jumped as much as 18% on Thursday, October 9, in response to its quarterly results for the July-September period.

The liquor maker’s net profit grew 59% over the same quarter last year, from ₹22 crore to ₹35 crore.

Revenue growth and margin expansion in the second quarter

GM Breweries reported 22% growth in revenue for the September quarter at ₹181 crore. The company had reported a turnover of ₹149 crore in the same quarter last year.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) grew 61% on a year-on-year basis to ₹45 crore from ₹28 crore last year.
EBITDA margins increased by more than 600 basis points during the quarter to 24.9%, compared to 18.8% in the base quarter.

GM Breweries is one of the largest players in the Indian country liquor market.

Stock Price Reaction

The stock price jumped 14% in response to the results announcement.

Shares of GM Breweries are now trading up 18% on Thursday at ₹871.05. The stock is up 26% over the past month, and as a result of that rise, the stock has also turned positive year-to-date.

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Michael Johnson

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