Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q4 FY2020 Earnings Presentation
25 slides from Globus Spirits's earnings presentation, Jun 17, 2020
Slide 1: Q4FY20 Result Presentation | June 2020
Q4FY20 Result Presentation | June 2020
Slide 2: Globus Spirits Limited - Overview
Globus Spirits Limited - Overview ✓ Unique 360o business model with Fully Integrated Alcohol Play having presence in ENA | IMIL | Franchisee Bottling | Premium IMFL segments ✓ Modern and Largest grain based distilleries with track record of high capacity utilisation ✓ Continuous value addition by co
Slide 3: Agenda
AGENDA Q4 FY20 Performance Performance Highlights 5 Financial Highlights 8 Segmental Performance 11 Annexure Company Overview 14 Shareholding Pattern 23 3
Slide 4: Quarter Highlights
QUARTER HIGHLIGHTS 4
Slide 5: Q4FY20 – Performance Highlights (Standalone)
Q4FY20 – Performance Highlights (Standalone) • Total Income (net of excise duty) stood at Rs. 2,695 mn in Q4FY20 against Rs. 2,709 mn in Q4FY20 Q4FY19 Q4FY19 – Largely stable despite the impact of Covid-19 pandemic led lockdown in Q4FY20 Rs. 2,695 mn Rs. 2,709 mn – Bulk alcohol revenue grew by 5% Yo
Slide 6: Covid – 19: Impact
Covid – 19: Impact ⦿ Impact on Performance: – On account of lockdown, the plants were completely shut from 24th March, 2020, resumed operations in April to manufacture sanitizers at a lower utilization – The liquor shops were shut and thus impacted the country liquor sales – Closure of plants impact
Slide 7: Strengthening the Balance Sheet position
Strengthening the Balance Sheet position TOTAL DEBT (RS. MN) TOTAL DEBT TO CASH BALANCE (RS. MN) EQUITY(X) (RS. MN) 2,572 68 2,371 0.68 1,825 0.56 0.38 24 25 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FINANCE COST (RS. MN) INTEREST COVERAGE RATIO (X) 271 263 4.26 2.51 235 1.43 FY18 FY19 FY20 FY18
Slide 8: Q4/FY20 – Profit & Loss Statement (Standalone)
Q4/FY20 – Profit & Loss Statement (Standalone) Particulars (In Rs MN) Q4 FY20 Q4 FY19 YoY (%) Q3 FY20 QoQ FY20 FY19 YoY Gross Revenues 2,928.8 2,877.8 2% 3,529.1 -17% 12,545.1 10,734.7 17% Less- Excise duty 233.3 168.9 38% 267.3 -13% 914.7 891.5 3% Net Revenues from Operations 2,695.4 2,708.9 0% 3,2
Slide 9: Q4/FY20 – Key Ratios (Standalone)
Q4/FY20 – Key Ratios (Standalone) Key Ratios as a % of Total Income Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 EBITDA 14.4% 10.8% 11.0% 11.8% 10.3% PAT 7.9% 5.3% 4.5% 5.1% 3.1% Total Expenditure 85.6% 89.2% 89.0% 88.2% 89.7% Raw material 57.8% 62.5% 64.8% 61.3% 60.7% Employee Cost 2.9% 2.5% 2.4% 2.7% 2.6% Ot
Slide 10: Balance Sheet - Highlights
Balance Sheet - Highlights Rs. in Mn Mar-20 Mar-19 Rs. in Mn Mar-20 Mar-19 Non-current assets 6,568.1 6,387.5 Shareholder’s Fund 4,688.8 4,100.1 Fixed assets 5541.5 5736.4 Share capital 288.0 288.0 Right to use assets 145.6 0.0 Other equity 4,400.8 3,812.1 CWIP 289.4 117.6 Non-current liabilities 1,
Slide 11: Segmental Performance
Segmental Performance Revenue Breakup from Operations (Net) Q4FY20 Q4FY19 Bulk Alcohol, Consumer 50.0% Manufacturing Bulk Alcohol, 47.5% Franchisee IMFL IMIL, IMIL, 1.9% 36.8% 34.4% Others, Franchisee 14.0% Others, IMFL 13.6% 2.1% • Manufacturing business Revenue - Rs. 1,763 mn in Q4 FY20, against R
Slide 12: IMIL – Strong Consumer Business
IMIL – Strong Consumer Business Q4FY20 IMIL - Total 2.50 mn cases Rajasthan IMIL Haryana IMIL West Bengal IMIL 1,000.0 0.90 900.0 830.3 813.1 0.80 800.0 2.60 0.70 700.0 0.60 80.00 0.40 2.10 600.0 2.20 0.43 0.50 70.00 0.35 500.0 2.03 0.33 0.40 60.00 47.3 0.30 400.0 1.60 108.6 50.00 0.25 71.9 0.30 40.
Slide 13: Manufacturing – Robust Performance
Manufacturing – Robust Performance Production & Capacity Utilization Captive Consumption as % of Production 56% 92.3% 40.00 100% 88.8% 31% 22% 35.5 Behror Samalkha West Bengal 34.9 50% • Capacity utilization at 88.8% in Q4 FY20 against 92.3% in Q4 FY19 – Production was impacted amid Lockdown due to
Slide 14: Manufacturing – Robust Performance (Contd.)
Manufacturing – Robust Performance (Contd.) Bulk Alcohol Franchise Bottling Franchise Bottling Volumes • 1,500.00 36 1.20 0.91 mn cases in Q4 FY20 vs. 1.2 mn cases in Q4 1.2 1,450.00 26.47 26.19 FY19 1,400.00 27 1.0 0.91 0.60 • Realizations stood at Rs. 1,347.2 0.8 47.8 per case 1,350.00 18 1,300.00
Slide 15: Company Overview
COMPANY OVERVIEW 15
Slide 16: 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 ~160 million bulk litres of distillery capacity – Present in DDGS – a high-potential co-product used as Animal Feed – Well pla
Slide 17: GSL – Geographical Presence
GSL – Geographical Presence • No. 1 private player in Rajasthan IMIL with 29% market share – 2.03 mn cases sold in Q4 FY20 • No. 4 private player in Haryana with 8% market share – 0.33 mn cases in sold in Q4 FY20 • 2% Market share in West Bengal – 0.14 mn cases sold in Q4 FY20 Own Distillery States
Slide 18: GSL - Competitive Strengths
GSL - 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 distillation • Helps capture IMFL growth via franchisee technology, zero discharge and highest bottling for top IM
Slide 19: Growth Strategy
Growth Strategy • Rationalizing high cost debt & debt repayment Further reduction of finance costs Average Realizations (Per Litre) • Leverage ethanol opportunity to enhance capacity utilization and improve realizations In Q4FY20 at Rs. 51.4 vs 48.6 in Q4FY19 Thrust further improvement of product •
Slide 20: Foray towards Premium IMFL – “UNIBEV”
Foray towards Premium IMFL – “UNIBEV” 90% 10% Globus Spirits Limited Mr. Vijay Rekhi •Unique business model – integrated •Beverage alcohol industry veteran spirits play •Steered USL to global volume leadership •Strong governance and financials •Keeper of Quaich, most admirable CEO •Bold business phi
Slide 21: Product Portfolio – Unique Value Proposition
Product Portfolio – Unique Value Proposition Unibev has come out with 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 brandy For the first time, discerning consumers
Slide 22: Focus on Expanding Brand’s Footprint
Focus on Expanding Brand’s Footprint Expanding Geographic Footprints will Create Availability to larger consumer base Established presence in 10 Sates during FY20
Slide 23: Current Brand Portfolio
Current Brand Portfolio Globus Spirits Limited (IMIL) UNIBEV (IMFL) 23
Slide 24: Shareholding Pattern
Shareholding Pattern Corporate Bodies, Individuals & Others 27% Promoter Group 56% FIIs 17% As on March 31, 2020 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