Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q1 FY2023 Earnings Presentation
30 slides from Globus Spirits's earnings presentation, August 2022
Slide 1: Result Presentation | Q1 FY23
Result Presentation | Q1 FY23 Bulk Alcohol | Value Segment | Franchise Bottling | Premium Segment
Slide 2: Table of Content
TABLE OF CONTENT Q1 FY23 Performance Performance Highlights Segmental Performance Financial Highlights Annexure Company Overview Financials Shareholding Pattern 2
Slide 3: Financial Highlights – Q1FY23
Financial Highlights – Q1FY23 Gross Revenue Revenue growth trajectory continues, backed by both volume and value growth Rs. 6,830 Mn ▪ Consumer segment revenue (net of excise) at Rs. 1,940 Mn, up 25% YoY and 15% QoQ 24% YoY ▪ Bulk Alcohol segment revenue at Rs. 2,343 Mn, up 52% YoY and 6% QoQ, led b
Slide 4: Business Performance Highlights – Q1FY23
Q4 FY21Highlights Business | Performance Highlights – Q1FY23 • Highest ever quarterly production of 5.34 Cr litres, backed by utilization of 92% on an expanded capacity • Consumer business continued to grow with overall sales of 3.94 Mn cases (up 16% YoY and 6% QoQ) • Strategically expanding capacit
Slide 5: Status of Projects
Q4 FY21 Status | Performance Highlights of Projects Capacity Capex Sr No. Location Timeline (approx.) (approx. KLPD) (approx. Rs Cr) 1 Jharkhand - greenfield 140 120 Aug-22 2 West Bengal (additional) 60 40 Q4-FY23 3 Jharkhand (additional) 60 40 Q4-FY23 4 Bihar 19 5 Q4-FY23 5 Orissa - greenfield 200*
Slide 6: Consumer Business – Market Initiatives
Consumer Business – Market Initiatives Value & Value Plus Segment Premium Segment ▪ Rajasthan: Market share ~33% ▪ Our IMFL brands are now available at over 50% salience ₋ Overall market share gain continues backed by robust Value contributing outlets in the key markets of Uttar Pradesh, Plus segmen
Slide 7: Consumer Business - Value Added, High Margin
Consumer Business - Value Added, High Margin Value Plus segment driving the overall growth in the Consumer Segment Consumer Business (Value, Value Plus, Premium liquors) – Revenue Trend (Rs. Mn ) 72 47 18 10 60 1,868 6,744 1,665 1,545 5,137 Q1FY22 Q4FY22 Q1FY23 FY21 FY22 Value & Value Plus Premium V
Slide 8: Manufacturing Business – Strong Backbone
Manufacturing Business – Strong Backbone Capacity utilisation at ~92% in Q1FY23 on an expanded capacity Bulk Alcohol (ENA and Ethanol) – Revenue Trend (Rs. Mn ) 2,343 6,509 2,215 5,495 1,541 Q1FY22 Q4FY22 Q1FY23 FY21 FY22 Bulk Alcohol Bulk Alcohol Bulk Alcohol sales in Q1FY23 at 41.04 Mn litre (up 3
Slide 9: Net Revenue Mix – Segment-wise
Net Revenue Mix – Segment-wise Share of manufacturing segment increased due to on-streaming of capacities Quarterly Revenue Mix Yearly Revenue Mix 42% 35% 39% 42% 43% 58% 65% 61% 58% 57% Q1FY22 Q4FY22 Q1FY23 FY21 FY22 Manufacturing Segment Consumer Segment The share of Manufacturing Business increas
Slide 10: Profit & Loss Highlights | Q1FY23
Profit & Loss Highlights | Q1FY23 Particulars (Rs Mn) Q1FY23 Q1 FY22 YoY (%) Q4 FY22 QoQ (%) FY22 Gross Revenues 6,830 5,506 24.0% 6,542 4.4% 23,438 Less- Excise duty 1,875 1,801 4.1% 1,749 7.3% 7,647 Net Revenues from Operations 4,954 3,705 33.7% 4,794 3.3% 15,791 Other Income 17 11 57.9% 18 -5.5%
Slide 11: Key Ratios | Q1FY23
Key Ratios | Q1FY23 Particulars (% of Total Income) Q1FY23 Q1 FY22 Q4 FY22 FY22 Other Income (% of Net Revenue) 0.3% 0.3% 0.4% 0.4% Raw material 58.8% 49.5% 57.7% 52.9% Employee Cost 2.8% 3.9% 3.0% 3.2% Other Expenditure 24.3% 19.9% 21.5% 22.8% Total Expenditure 85.9% 73.3% 82.1% 78.9% EBITDA 14.1%
Slide 12: Company Overview
Company Overview
Slide 13: Presence Across the Value Chain
Presence Across the Value Chain Well integrated operations aid in ensuring quality and cost control Consumer Business - Owned Brands Premium Value Segment Segment (Country Liquor) Globus Spirits Limited Key Raw Material (Rice) Distillation Premium Segment (Franchisee Botting) ENA & Ethanol (160 Mn L
Slide 14: Business Segments
Business Segments Largely divided into Manufacturing and Consumer segments Manufacturing Business (~59% of Revenue*) Consumer Business (~41% of Revenue*) Strong Backbone… High Value… Bulk Spirits Franchisee Bottling By Products Value Value Plus Premium Rs.40-60 per 180 ml Rs.80-95 per 180 ml Rs.125-
Slide 15: Manufacturing Business
Manufacturing Business
Slide 16: Bulk Alcohol
1. Bulk Alcohol Backbone of the 360obusiness model; Generating robust cashflows • Globus is the largest grain based Extra Neutral Alcohol (ENA) manufacturer in India with a capacity of 195 Mn Litres • Reputed IMFL players are major customers for Bulk Alcohol • Presence in Rajasthan, Haryana, Bihar a
Slide 17: Franchisee Bottling
2. Franchisee Bottling Strong relationships with pedigreed players ensures steady offtake Bottling volume (Mn cases) 20 year old relationships with ABD and USL / Diageo 5.0 4.5 63.6 67.0 80.00 4.0 46.0 50.0 60.00 3.5 3.0 43.5 40.00 Proxy play on growth in IMFL industry 2.5 2.0 20.00 1.5 3.4 4.5 4.0
Slide 18: By-Products
3. By-Products Process efficiencies lead to zero discharge and incremental revenues ❑ Animal Feed Supplements (AFS) By-products (% of Total Operating Income) o Major by-product from distillation process is Animal Feed Supplements with Solubles & AFS o Used as food for the animal feed industry o High
Slide 19: Consumer Business
Consumer Business
Slide 20: Value Segment – GSL is One of the Largest IMIL Players
Value Segment – GSL is One of the Largest IMIL Players Product innovation and focus on brand building has enabled growth Existing Product Portfolio Focus on Innovation through Investment in R&D Nimboo Ghoomar Heer Ranjha Narangi Value & Value Plus Segment 461 500.00 429 427 382 377 14.00 450.00 400.
Slide 21: Premium Segment - Unique Value Proposition
Premium Segment - Unique Value Proposition Focus on niche segments | Building blocks for a high margin brand play Disruptive & exclusive USP with value proposition Crafted a range of premium and super premium whiskies blended with scotch and French blended grape brandy For the first time, discerning
Slide 22: Financials
Financials
Slide 23: Annual | Profit & Loss Statement
Annual | Profit & Loss Statement Particulars (Rs Mn) FY20 FY21 FY22 Gross Revenues 12,674 16,721 23,438 Less- Excise duty 986 4,414 7,647 Net Revenues from Operations 11,688 12,308 15,791 Other Income 37 66 66 Total Income 11,726 12,373 15,858 Total Expenditure 10,441 9,756 12,506 Consumption of Mat
Slide 24: Annual | Key Ratios
Annual | Key Ratios Particulars (% of Total Income) FY20 FY21 FY22 Other Income (% of Net Revenue) 0.3% 0.5% 0.4% Raw material 61.2% 52.8% 52.9% Employee Cost 2.9% 3.1% 3.2% Other Expenditure 24.9% 23.0% 22.8% Total Expenditure 89.0% 78.8% 78.9% EBITDA 11.0% 21.2% 21.1% Depreciation 3.2% 3.3% 2.7% F
Slide 25: Annual | Balance Sheet
Annual | Balance Sheet Liabilities (Rs mn) Mar-20 Mar-21 Mar-22 Assets (Rs mn) Mar-20 Mar-21 Mar-22 Networth 4,500 5,907 7,723 Fixed assets (incl. CWIP) 5,985 6,269 7,676 LT borrowings 1,328 1,067 1,105 Investments 0 0 0 Provisions 28 30 33 Other financial assets 183 176 189 Deferred tax liabilities
Slide 26: Enhanced Net Cash Flow from Operations
Enhanced Net Cash Flow from Operations The business mix and focus on costs have led to strong operating cash flow generation Net Cash Flow from Operations (Rs Mn)… …Driven by the Following Key Factors 2,187 ▪ Growth in business and improved profitability 1,354 1,416 ▪ Lower Finance costs due to pari
Slide 27: Key Financial Ratios
Key Financial Ratios Consistent focus on reducing debt from business cashflow; improving return ratios Long Term Borrowing (Rs Mn) Net Debt/Equity (x) 1,759 1,517 0.35 1,242 0.20 0.11 FY20* FY21* FY22 FY20* FY21* FY22 Finance Cost (Rs Mn) and Avg. Cost of Debt (%) Return Ratios (%) 12.5% RoE RoCE 8.
Slide 28: Shareholding Pattern
Shareholding Pattern Total outstanding equity shares as of June 30, 2022, stands at 28.8 Mn shares Non-Institutuion 42.56% Promoter Group 51.01% Institutuion 6.43% 28
Slide 29: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Globus Spirits Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not f
Slide 30: Let’s Connect
Let’s Connect Mr. Bhaskar Roy Ms. Pooja Sharma / Mr. Suyash Samant Globus Spirits Limited Stellar IR Advisors Pvt. Ltd. Phone: +91 11 6642 4600 Phone: +91 22 6239 8024 Email: broy@globusgroup.in Email: pooja.sharma@stellar-ir.com / suyash@stellar-ir.com