Professional Documents
Culture Documents
Q2 FY15
INVESTOR PRESENTATION
Safe Harbor
This presentation contains statements that contain forward looking statements including, but without limitation,
statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits future
business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the development of
our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to
differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the
financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our
business and financial performance.
Globus Spirits Limited undertakes no obligation to publicly revise any forward looking statements to reflect future / likely
events or circumstances .
Agenda
Q2 & H1 FY15 Performance
Key highlights..04
Business Overview..11
Annexure
Shareholding pattern.......18
Financials..19
Q2FY15 YoY:
Net Revenues
EBITDA
PAT
Q1FY15
1,365
114
12
13%
22%
5%
1,211
94
12
Q1FY14
Revenue from operations (Net) up 12.7% YoY to reach Rs 1,365 mn in Q2FY15 driven by robust
volumes in franchise business and increased realizations across verticals
- Franchisee bottling volumes up 57% YoY and bulk alcohol exports at 2.8mn BL compared to 0.8mn in
Q2FY14
- Sale of by-products up by 4%, driven by value added product DDGS
EBITDA for the quarter at Rs 114 mn with EBITDA margin at 8.4% (vs 7.7% in Q2 FY14)
- Lower raw material costs driven by improved recoveries
Q2 FY15
Own IMFL
1%
Own IMFL
1%
Bulk
alcohol
32%
IMIL
42%
Bulk
alcohol
37%
IMIL
44%
Others
9%
Franchise
e IMFL
16%
Others
10%
Consumer businesses
Franchise
e IMFL
8%
Manufacturing businesses
76%
79%
17
18
5%
YoY
Rajasthan bottling*
100%
3,000
80%
2,500
410
2,000
2,225
400
60%
1,500
40%
1,000
20%
500
(1)
0%
Q2 FY14
Production (Mn BL)
Q2 FY15
500
207
300
135%
YoY
200
949
100
Q2 FY14
Revenues
Q2 FY15
Rajasthan bottling ('000 cases)
Capacity utilization up from 76% in Q2FY14to 79% in Q2FY15 with improved grain recoveries
resulting in 5%YoY increase in production to 17.8mnBL
Scaled up bottling contract with ABD and added new contract with Jagatjit Industries in
Rajasthan, resulting in 98% YoY volume growth and 135% YoY value growth
Haryana bottling volumes increased by 17% YoY
Bulk alcohol revenues declined by 3% due to highly competitive market in Haryana, offset by
export volumes increasing 3.7x YoY
*Note: The revenues from bottling operations are recognized differently in Rajasthan and Haryana
as per states reporting requirements. In Rajasthan the entire amount of bulk alcohol consumed in
bottling along with fee is reported in revenues whereas in Haryana the bulk portion used in bottling
is clubbed with bulk segment and fee is reported in other operating 7income
Delhi IMIL
Rajasthan IMIL
450
3.00
400
25%
350
300
250
200
316
1.06
395
2.50
1.28
150
1.50
1.00
32
0.50
50
-
Q2 FY14
Revenues
Q2 FY15
Volumes
31
2.20
180
0.90
160
0.80
7%
31
180
22%
1.70
140
0.70
120
0.60
100
0.50
30
29
30
29
100
200
1.00
32
31
2.00
Haryana IMIL
0.12
0.11
28
- -
Revenues
Volumes
0.50
0.70
40
0.20
20
0.10
Q2 FY15
1.20
60
0.30
29
Q2 FY14
0.64
80
0.40
141
0.20
-0.30
Q2 FY14
Revenues
Q2 FY15
Volumes
Aggregate IMIL revenues grow by 7% YoY, driven by 25% increase in Rajasthan IMIL revenues
Partly offset by decline in Haryana and Delhi IMIL revenues, down by 22% YoY and 7% YoY
respectively
IMFL revenues increase by 46% YoY with aggregate sales of ~39k cases. Focus on 3 core brands
in Haryana and Rajasthan
EBITDA
PAT
H1FY15
2,775
238
34
H1FY14
2,512
292
104
Figures in Rs Million
Net sales and other operating income up 10.5% YoY to reach Rs 2,775mn in H1FY15 driven by
strong growth in manufacturing revenues and higher net realizations across all segments
EBITDA for the period at Rs 238 mn with EBITDA margin at 8.6%
- Decline in EBITDA margin mainly due to changed revenue mix share of manufacturing in net revenues
up from 53% in H1FY14 to 59% in H1FY15
- Increase in grain prices and overheads partially offset by improved grain-recovery
10
Business Overview
11
Amongst the largest and most efficient grainbased distillery operations in India with ~90 mn
bulk litres operating capacity in North India
model
Bottling
IMFL
Bulk
12
Future
Backed
by
reputed
investor, Templeton
13
IMIL Market**
Mn Litres
25
98
86
78
Bihar
20
West Bengal
Consumption
21%
Planned expansion
20%
21%
20
20%
15
55
31
Currently present
17 20
Jharkhand
-3
Production
Deficit
10
22
18%
23
19%
18%
17%
3
Bihar
West Bengal
16%
Jharkhand
3-Yr CAGR
14
Brand showcase
Nimboo
1st IMIL brand in
India positioned as
awesome mix of
natural lemon
flavor with strong
yet smooth blend
profile
County
Club
Whisky
product
targeted at
young
professionals
Hannibal
Legendary
White Lace
3rd largest
selling gin in
its category
in Rajasthan
Ghoomar
Heer Ranjha
Narangi
Tribute to Rajasthani
folk dance ; blend
popular in the harsh
winter months of the
desert region
15
Strong Consumer
portfolio
Efficient
Operations
Only company
present across full
alcobev value chain
Helps capture IMFL
growth via
franchisee bottling
for top IMFL
companies
High utilization with
assured captive offtake
De-risked growth
High quality
maintained with
control on entire
value chain
State-of-the-art
plants across three
locations using latest
distillation
technology, zero
discharge and
highest grainrecovery in industry
Supplying to
premium brands
Net Fixed Asset
turnover ratio at 1.2x
Leadership - mix of
experience and
young talent
16
Healthy balancesheet
Funding for
greenfield
expansion at Bihar
secured via equity
D/E of 0.4x
Cash efficient
operations with WC
of 12 days
Annexure
17
Shareholding Pattern
As on 30th September, 2014*
Outstanding shares 28.8 mn
Public &
Others, 15.7%
Corporate,
3.3%
Templeton
Strategic
Emerging
Markets,
17.49%
Promoters,
56.4%
Major Non-Promoter
Shareholders*
%
shareholding
17.49%
6.39%
DII, 6.5%
FII, 0.6%
18
Net Sales
Other Operating Income
EBITDA
Depreciation & Amortisation
EBIT
Finance Charges
Other Income
PBT before exceptional items
Exceptional items*
PBT
Provision for Tax
MAT Credit **
PAT (From ordinary activities and before minority interest)
Minority interests
PAT
Key Ratios as a % of Total Revenue
EBIDTA
PAT
Total Expenditure
Consumption of materials
Employee Cost
Other Expenditure
Q2 FY15 Q2 FY14 YoY (%) Q1 FY15 QoQ (%) H1 FY15 H1 FY14 YoY (%)
2,060
695
1,364
1
1,365
1,251
785
34
432
114
65
49
41
4
12
12
2
(2)
12
12
1,521
321
1,200
12
1,211
1,118
739
31
348
94
64
30
25
16
21
(60)
(38)
17
(67)
12
12
35%
117%
14%
-95%
12.7%
12%
6%
9%
24%
22%
2%
63%
65%
-75%
-42%
-100%
-132%
-86%
-96%
5%
NA
5%
2,174
766
1,408
2
1,410
1,286
942
31
314
123
74
49
35
8
21
21
4
(4)
21
21
-5%
-9%
-3%
-64%
-3%
-3%
-17%
11%
38%
-7%
-13%
0%
16%
-48%
-43%
NA
-43%
-43%
-43%
-43%
NA
-43%
4,234
1,461
2,772
2
2,775
2,537
1,727
64
746
238
140
98
76
12
34
34
7
(7)
34
34
7.7%
1.0%
92.3%
61.0%
2.5%
28.7%
8.8%
1.5%
91.2%
66.8%
2.2%
22.3%
8.6%
1.2%
91.4%
62.2%
2.3%
26.9%
11.6%
4.1%
88.4%
60.0%
2.3%
26.1%
FY14
9.1%
3.3%
90.9%
62.1%
2.4%
26.4%
During the current period the expenses incurred on brand promotion were expensed off, however, up to 31/03/2013 the same were being capitalised since
the brands were under establishment during that period. Further, during Q1 & Q2 FY15, an amount of Rs. 18 mn each and during Q4 FY14, an amount of Rs
72mn has been debited to Statement of Profit and Loss to amortise these assets over 5 years
*Exceptional item in FY14 represents additional depreciation charge on account of change from shift basis to continuous process plant for certain
plant & machinery.
**MAT Credit availed in FY14 represents credit taken in respect of year ended 31/03/2013.
19
3,206
716
2,490
21
2,512
2,220
1,506
58
656
292
117
174
43
21
153
(60)
93
57
(67)
104
104
32%
104%
11%
-90%
10%
14%
15%
10%
14%
-19%
19%
-44%
78%
-46%
-78%
-100%
-64%
-88%
-90%
-67%
NA
-67%
FY14
6,616
1,655
4,961
4
4,965
4,515
3,083
121
1,311
450
285
165
102
29
92
60
152
110
(120)
162
162
Interim Balance-sheet
Figures in Rs Million
30-Sep-14 31-Mar-14
Key Ratios
Liabilities
Shareholders' Funds
Debt-Equity Ratio
3,534
3,508
Non-Current Liabilities
Long Term Borrowings
204
459
11
494
11
869
810
250
6,532
691
792
268
5,967
4,597
0
360
4,437
0
377
Inventories
Trade Receivables
Cash & Equivalents
Short-terms loans and advances/other
current assets
436
597
341
455
473
64
202
161
Total Assets
6,532
5,967
20
30-Sep-14 31-Mar-14
0.42
0.26
1.22
1.20
36
40
42
35
About Us
Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN
Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian
Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established
IMFL brands. The Company has a well established presence in the IMIL segment and is making its
mark in the IMFL segment apart from taking up contract bottling to cater to renowned Indian
players.
GSL currently operates three modern and fully integrated distilleries at Behror, Rajasthan and
Samalkha and Hisar, Haryana. It is one of the largest and most efficient grain based distilleries in
India with highest alcohol recovery per unit of grain.
For more information about us, please visit www.globusspirits.com or contact:
Rupam Prasad
Phone: : +91 124 4241442
Gurgaon
Rupam.prasad@four-s.com
21
Seema Shukla
Phone: +91 124 4241441
Gurgaon
seema@four-s.com