Slide 1: Q2FY19 Earnings Presentation
GLOBUS SPIRITS LIMITED Q2FY19 Earnings Presentation 05 November 2018
Slide 2: Safe Harbor
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. W
Slide 3: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA with capacity of ~150 million bulk liters MANUFACTURING EXCELLENCE – State of the art manufacturing facilities with ‘zero discharge„ and ‘integrated evaporati
Slide 4: Agenda
AGENDA Q2 FY19 Performance Performance Highlights 5 Key Developments 6 Financials 7 Financial Performance 9 Annexure Company Overview 14 UNIBEV 22 Shareholding Pattern 24 4
Slide 5: Q2 FY19 – Performance Highlights
Q2 FY19 – PERFORMANCE HIGHLIGHTS • Total Income (net of excise duty) stood at Rs. 2,263 mn in Q2 FY19, 11% growth Rs. 2,042 against Q2FY18 Q2 FY19 Q2 FY18 – Higher Bulk Alcohol sales driven by higher capacity utilization, Bulk Alcohol Sales grew by 31.4% YoY. Value added byproducts grew by 20.7% – S
Slide 6: Key Developments
KEY DEVELOPMENTS • Recommencement of Operations at Bihar Facility – Recommenced operations at the manufacturing plant located in Bihar w.e.f October 09, 2018; operations were discontinued w.e.f financial year 2017-18 due to restriction on manufacture of ENA in Bihar – The capacity of the facility is
Slide 7: Q2 FY19: Profit & Loss Statement
Q2 FY19: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q2 FY19 Q2 FY18 YoY (%) Q1 FY19 QoQ H1FY19 H1FY18 YoY FY18 Gross Revenues 2491.51 2224.23 12.0% 2582.11 -3.5% 5073.61 4664.39 8.8% 9,322.1 Less- Excise duty 240.08 208.35 15.2% 267.05 -10.1% 507.12 324.83 56.1% 771.4 Net Revenues fro
Slide 8: Q2 FY19: Key Ratios
Q2 FY19: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q2 FY19 Q2 FY18 Q1 FY19 H1FY19 H1FY18 FY18 EBITDA 9.1% 10.0% 11.7% 10.4% 8.8% 8.7% PAT 1.2% 1.4% 3.2% 2.3% 1.0% 0.8% Total Expenditure 90.9% 90.0% 88.3% 89.6% 91.2% 91.3% Rawmaterial 59.3% 57.6% 58.7% 59.0% 61.3% 60.1% EmployeeCost 2.
Slide 9: September 2018 - Balance Sheet Highlights
September 2018 - Balance Sheet Highlights Particulars (In Rs MN) Sep 2018 Mar 2018 Particulars (In Rs MN) Sep 2018 Mar 2018 Liabilities Assets Shareholders„ Fund 3,897.62 3,793.65 Net fixed assets 5,971.30 6,090.10 Non-Current Liabilities 2,171.68 1,737.68 Non-current investment 49.49 49.46 Long ter
Slide 10: Segmental Performance
SEGMENTAL PERFORMANCE Breakup of Revenue from Operations (Net) IMFL, 0% Bulk Alcohol, 42% Q2 • Revenues from manufacturing business stood at Rs. 1,266 mn in Q2 FY19 Franchisee IMIL, 44% IMFL FY19, against Rs. 971 mn in Q2 FY18 2% – Share of manufacturing business stood at 56% in Q2 FY19 Others, 12%
Slide 11: IMIL – Stiff Competition
IMIL – STIFF COMPETITION Rajasthan IMIL Haryana IMIL Delhi IMIL West Bengal IMIL 2.25 0.18 2.33 0.15 0.73 0.12 0.32 45.50 57.90 0.03 778.6 821.0 186.8 97.9 34.10 8.30 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY19 IMIL Split by Volume • Aggregate IMIL revenues stood at Rs. 9
Slide 12: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS Production & Capacity Utilization 88% 91% • Capacity utilization stood at 91% in Q2 FY19 against 88% in Q2FY18 (excluding 20.0 100% 10.0 50% Bihar) 16.3 21.8 0.0 0% • Captive consumption at 45%, with significant scope for conversion from bulk to Q2 FY18 Q
Slide 13: Company Overview
COMPANY OVERVIEW 13
Slide 14: Globus 360º Alcobev Player
GLOBUS 360º ALCOBEV PLAYER • No. 1 private player in Rajasthan IMIL with 30% market share – 2.3 mn cases sold in Q2FY19 • No. 4 private player in Haryana with 7% market share – 0.3 mn cases in sold in Q2 FY19 • Increasing market share in West Bengal – 0.2 mn cases sold in Q2FY19 • Recommencement of
Slide 15: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Large, efficient manufacturing operations • Amongst the largest and most efficient grain-based distillery operations in India with ~150 million bulk litres of distillery capacity* • Present in DDGS – a high-potential co- product used as Animal Feed 360o • Well
Slide 16: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North India • Large market share in IMIL by offering (Haryana & Rajasthan) quality products to the consumer • Largest grain based distilleries in India • Establish sustainable premium brands in • Strong IMIL brands that have acceptance IMFL and
Slide 17: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Location advantages like lower raw material costs, higher realizations and other logistical benefits to drive overall profitability Existing facilities at Haryana & Rajasthan Severe Alcohol Deficit in West Bengal 98 (mn ltrs) Commissioned Greenfield 78 fac
Slide 18: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned as Tribute to Rajasthani folk dance ; awesome mix of natural lemon flavor blend popular in the harsh winter with strong yet smooth blend profile months of the desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 19: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Efficient Operations • Only company present across full alcobev value chain • State-of-the-art plants across three locations using latest • Helps capture IMFL growth via franchisee bottling for top distillation technology, zero discharge and highest g
Slide 20: Ethanol - A Great Opportunity
ETHANOL - A GREAT OPPORTUNITY Alcohol demand of 6.3bn litres Strategically located assets to expected to grow at 12% maximise realisations Alcohol Demand 2018-19 (Bn Litres) Opportunity in Ethanol – Presence in alcohol deficit/ adding ethanol balanced states – healthy manufacturing capability realiz
Slide 21: Marching Towards New Leg of Growth Through UNIBEV
MARCHING TOWARDS NEW LEG OF GROWTH THROUGH “UNIBEV” 21
Slide 22: UNIBEV: Led by Industry Veteran Mr. Vijay Rekhi
UNIBEV: LED BY INDUSTRY VETERAN MR. VIJAY REKHI Strategy • Focus on premium IMFL • Build portfolio of 4-6 niche brands in price segments which contribute max profit and currently only have 2-3 dominant brands Premium IMFL – Attractive Industry Segment • Premium IMFL is a highly attractive segment ac
Slide 23: UNIBEV: Current Product Portfolio
UNIBEV: CURRENT PRODUCT PORTFOLIO Governor„s Reserve – 12 years Scotch Whisky Oakton – 18 years Scotch Whisky L„Affaire Napoleon – 3 years Brandy • Presence in Semi-premium whisky segment • Presence in Premium whisky segment • Presence in Premium brandy segment • Segment is about 20m cases • Segment
Slide 24: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 28% Promoter Group 54% FIIs 18% As on September 30, 2018 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 24
Slide 25: About Us
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 C