Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q3 FY2022 Earnings Presentation
31 slides from Globus Spirits's earnings presentation, February 2022
Slide 1: Result Presentation | February 2022
Result Presentation | February 2022 Bulk Alcohol | Value Segment | Franchise Bottling | Premium Segment
Slide 2: Table of Content
TABLE OF CONTENT Q3 & 9M FY22 Performance Performance Highlights Segmental Performance Financial Highlights Annexure Company Overview Financials Shareholding Pattern 2
Slide 3: Financial Performance Highlights – Growth Trajectory Continues in YTD
Q4 FY21Highlights Financial | Performance Highlights – Growth Trajectory Continues in YTD Q3FY22 (YoY %) 9MFY22 (YoY %) Gross Revenue growth backed by higher growth in Consumer Business (Net Revenue of Rs 5,109 Mn in 9MFY22), led by growth Gross of ~32% YoY in Consumer volumes in 9MFY22 (Value Plus
Slide 4: Key Highlights of Q3FY22 (1/2)
Q4 Highlights Key FY21 | Performance Highlights of Q3FY22 (1/2) • EBITDA impacted (Q3FY22 v/s Q2FY22): • EBITDA impact of Rs 25 Cr due to shutdown of Bihar plant for ~72 days in Q3FY22 on account of floods situation and a major planned overhaul in the power plant of Samalkha (Haryana) for ~40 days i
Slide 5: Key Highlights of Q3FY22 (2/2)
Q4 Highlights Key FY21 | Performance Highlights of Q3FY22 (2/2) • EBITDA Margin impacted (Q3FY22 v/s Q2FY22) mainly due to inflation in fuel cost and higher cost due to purchase of alcohol • Fuel (rice husk and coal) rate increased by ~18% QoQ • AFS prices corrected in Q3FY22, and current prices are
Slide 6: Status of Projects
Q4 FY21 Status | Performance Highlights of Projects • West Bengal Expansion Completed: Commissioned new capacity of ~140 klpd in mid of Dec-21, utilisation of which, will pick up significantly in Q4FY22 • Jharkhand Facility: New capacity of 140 KLPD with bottling plants likely to become operational
Slide 7: Consumer Business – Initiatives
Consumer Business – Initiatives Strong demand environment & expansion initiative to drive revenue & earning growth Value & Value Plus Segment Premium Segment ▪ Rajasthan : Market share increased to ~32.5% ▪ Current Portfolio of IMFL brands ₋ Strong Value Plus performance: ~45% market share of GSL ₋
Slide 8: 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 (includes Value, Value Plus, Premium liquors) – Revenue Trend (Rs. Mn ) Value & Value Plus Premium 11 23 16 10 17 1,795 1,725 1,565 1,545 1,395 Q3FY21 Q4FY21 Q1FY22 Q2
Slide 9: Manufacturing Business – Strong Backbone
Manufacturing Business – Strong Backbone Capacity utilisation at ~87% in Q3FY22 Bulk Alcohol – Revenue Trend (Rs. Mn ) EBITDA loss due to plant shutdown Bihar Bihar + Haryana 200 250 1,539 1,541 1,354 1,379 1,239 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Bulk Alcohol sales volumes at 23.5 Mn litre in Q3FY2
Slide 10: Net Revenue Mix – Segment-wise
Net Revenue Mix – Segment-wise Moving towards a more favourable mix with higher share of Consumer Business Quarterly Revenue Mix Nine Monthly Revenue Mix 45% 47% 50% 41% 46% 55% 53% 50% 59% 54% Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 Manufacturing Segment Consumer Segment Share of Consumer Business incre
Slide 11: Profit & Loss Highlights | Q3 & 9MFY22
Profit & Loss Highlights | Q3 & 9MFY22 Particulars (Rs Mn) Q3 FY22 Q3 FY21 YoY (%) Q2 FY22 QoQ (%) 9MFY22 9MFY21 YoY (%) Gross Revenues 5,450 4,325 26.0% 5,939 -8.2% 16,896 11,812 43.0% Less- Excise duty 1,980 1,161 70.5% 2,118 -6.5% 5,898 3,071 92.0% Net Revenues from Operations 3,471 3,164 9.7% 3,
Slide 12: Key Ratios | Q3 & 9MFY22
Key Ratios | Q3 & 9MFY22 Particulars (% of Total Income) Q3 FY22 Q3 FY21 Q2 FY22 9MFY22 9MFY21 Other Income (% of Net Revenue) 0.6% 0.3% 0.4% 0.4% 0.6% Raw material 51.5% 51.0% 51.4% 50.8% 54.4% Employee Cost 3.0% 3.0% 2.8% 3.2% 3.3% Other Expenditure 28.2% 24.5% 22.5% 23.4% 22.7% Total Expenditure
Slide 13: 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 ▪ Growth in business and improved profitability 1,561 1,484 1,354 ▪ Lower Finance costs due to pari
Slide 14: Company Overview
Company Overview
Slide 15: 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) (UNIBEV) Globus Spirits Limited Key Raw Material (Broken Rice) Distillation Premium Segment (Franchisee Botting) ENA & E
Slide 16: Business Segments
Business Segments Largely divided into Manufacturing and Consumer segments Manufacturing Business (~57% of Revenue*) Consumer Business (~43% 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 17: Manufacturing Business
Manufacturing Business
Slide 18: 1. 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 160 Mn Litres • Reputed IMFL players are major customers for Bulk Alcohol • Presence in Rajasthan, Haryana, Bihar a
Slide 19: 2. 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 80.00 4.0 46.0 50.0 60.00 3.5 3.0 40.7 43.5 40.00 Proxy play on growth in IMFL industry 2.5 2.0 20.00 1.5 3.3 3.4 4.5
Slide 20: 3. 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 21: Consumer Business
Consumer Business
Slide 22: 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 500.00 429 427 382 377 14.00 450.00 315 400.
Slide 23: 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 Upto12, 18 years old scotch & a 3 years old French blended grape bran
Slide 24: Financials
Financials
Slide 25: Annual | Profit & Loss Statement
Annual | Profit & Loss Statement Particulars (Rs Mn) FY20* FY21* 9M FY22 Gross Revenues 12,674 16,721 16,896 Less- Excise duty 986 4,414 5,898 Net Revenues from Operations 11,688 12,308 10,997 Other Income 37 66 48 Total Income 11,726 12,373 11,046 Total Expenditure 10,441 9,756 8,555 Consumption of
Slide 26: Annual | Key Ratios
Annual | Key Ratios Particulars (% of Total Income) FY20* FY21* 9M FY22 Other Income (% of Net Revenue) 0.3% 0.5% 0.4% Raw material 61.2% 52.8% 50.8% Employee Cost 2.9% 3.1% 3.2% Other Expenditure 24.9% 23.0% 23.4% Total Expenditure 89.0% 78.8% 77.5% EBITDA 11.0% 21.2% 22.5% Depreciation 3.2% 3.3% 2
Slide 27: Annual | Balance Sheet
Annual | Balance Sheet Liabilities (Rs Mn) Mar-20* Mar-21* Sep-21 Assets (Rs Mn) Mar-20* Mar-21* Sep-21 Networth 4,500 5,907 6,932 Fixed assets (incl. CWIP) 5,985 6,269 6,826 LT borrowings 1,328 1,124 1,037 Intangible assets under 0 0 0 development Provisions 28 30 32 Financial assets 183 176 175 De
Slide 28: 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 1,177 0.20 0.14 FY20* FY21* 9MFY22 FY20* FY21* 9MFY22 Finance Cost (Rs Mn) and Avg. Cost of Debt (%) Return Ratios (%) 12.5% RoE RoC
Slide 29: Shareholding Pattern
Shareholding Pattern Total outstanding equity shares as on December 31, 2021, stands at 28.8 Mn shares Non-Institutuion 42.82% Promoter Group 50.90% Institutuion 6.28% 29
Slide 30: 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 31: Let’s Connect
Let’s Connect Mr. Bhaskar Roy Ms. Pooja Sharma 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