Globus Spirits Limited · NSE:GLOBUSSPR

Globus Spirits — Q2 FY24 Earnings Presentation

28 slides from Globus Spirits's earnings presentation, November 2023

  1. Slide 1: Globus Spirits Limited Q2 & H1FY24

    ENAbling Excellence GLOBUS SPIRITS LIMITED Q2 & H1FY24

  2. Slide 2: Globus Spirits - A Well Entrenched Distillation Business

    Globus Spirits - A Well Entrenched Distillation Business… Consumer Business Damaged Rice Maize Fungible Intermediates Prestige and Above Craft Spirits Flexible Input Ingredient ENA for Captive Use Value and Value + Brands ENA for sale to Alcobev Companies Franchisee Bottling for Diageo and By Produc

  3. Slide 3: Supporting a Growing Consumer Business (1/4): India Crafts Spirit Co.

    … Supporting a Growing Consumer Business (1/4) India Crafts Spirit Co., Distillers Since 1958 ▪ Organised all super premium offering into an umbrella brand - signifying hand-crafted product offerings from India ▪ The brand leverages authentic Indian heritage of our distilleries and the history of th

  4. Slide 4: Prestige & Above Segment

    … Supporting a Growing Consumer Business (2/4) • Disruptive IMFL portfolio, offering Unique Value Proposition Prestige • Strategic presence in 5 states (combined market size of ~74 Mn cases) & Above • Entered Haryana and Punjab in the last 12 months Segment • Exploring to enter new Domestic Markets

  5. Slide 5: Value & Value Plus Segment

    … Supporting a Growing Consumer Business (3/4) • Pioneer in Value Plus segment in Rajasthan with introduction of RML (medium liquor) - GSL enjoys a ~55% market share in RML Value & • Strong portfolio based on local tastes and preferences Value Plus • Covering rural consumption and aspirational urban

  6. Slide 6: Ready-to-Drink Segment

    … Supporting a Growing Consumer Business (4/4) • GSL is foraying into the Ready-to-Drink (RTD) segment with the formation of a subsidiary in Ready-to- M/s Bored Beverages Pvt. (Innovative alcohol beverage startup). GSL will own 51.13% of this subsidiary, with management control, and invest up to Rs

  7. Slide 7: Expansion Plans for Manufacturing Business – Strong Backbone

    Expansion Plans for Manufacturing Business – Strong Backbone Capacity Addition Total Capacity after Location Status (KLPD) Completion West Bengal (WB) – II 140 240 Completed Q4FY22 Jharkhand (JHK) 140 140 Completed Q2FY23 In trial stage and awaiting regulatory approval; West Bengal - III 60 300 To b

  8. Slide 8: Existing State-of-the-Art Manufacturing Units (1/3)

    Existing State-of-the-Art Manufacturing Units (1/3) Rajasthan Facility Capacity: 54.4 Mn Ltrs Products: Value, Value Plus, IMFL Liquor; ENA, Ethanol and Other By-products (mainly AFS) 8

  9. Slide 9: Existing State-of-the-Art Manufacturing Units (2/3)

    Existing State-of-the-Art Manufacturing Units (2/3) West Bengal Facility Haryana Facility Capacity: 81.6 Mn Ltrs (scale up to 102.0 Mn Ltrs by Q1FY24) Capacity: 47.6 Mn Ltrs Products: Value, Value Plus, IMFL Liquor Franchisee IMFL; Products: Value, Value Plus, IMFL Liquor, Franchisee IMFL; ENA, Etha

  10. Slide 10: Existing State-of-the-Art Manufacturing Units (3/3)

    Existing State-of-the-Art Manufacturing Units (3/3) Bihar Facility Jharkhand Facility Capacity: 28.9 Mn Ltrs (scale up to 35.4 Mn Ltrs by Q1FY24) Capacity: 47.6 Mn Ltrs (scale up to 68 Mn Ltrs by Q1FY24) Products: Ethanol and Other By-products (mainly AFS) Products: ENA, Ethanol and Other By-product

  11. Slide 11: Q2FY24 Results Commentary

    11 Q2FY24 Results Commentary

  12. Slide 12: Consumer Business (36% of Net Revenue)

    Consumer Business (36% of Net Revenue) Net Revenue (Rs Mn) Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% H1FY24 H1FY23 YoY% IMFL (Prestige & Above) 125 44 181% 75 68% 199 116 72% - Volumes sold (Mn cases) 0.08 0.03 143% 0.05 68% 0.13 0.08 73% Value and Value Plus 1,898 1,587 20% 1,955 -3% 3,853 3,455 12% - Volumes

  13. Slide 13: Update on Current and Upcoming IMFL Brands

    Update on Current and Upcoming IMFL Brands Market Expansion in Rajasthan in Q3 & Jharkhand in Q4 Expansion of Brands & Market Brand State Timeline SNOSKI & Variants Haryana , West Bengal and Delhi Q3 to Q4FY24 Mountain Oak SNOSKI Vodka (whisky) continues launched in Delhi. Premium Rum Uttar Pradesh

  14. Slide 14: Backward Integration: In-house Maturation Facilities

    Backward Integration: In-house Maturation Facilities GSL has built in-house maturation facilities at Rajasthan to mature high end spirits. This will help us to save around Rs. 85 per BL and drive profitability in the consumer business. Maturation to help us: • Reduce dependence on external supplies.

  15. Slide 15: Manufacturing Business (64% of Net Revenue)

    Manufacturing Business (64% of Net Revenue) Net Revenue (Rs Mn) Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% H1FY24 H1FY23 YoY% Bulk Alcohol 3,024 2,534 19% 2,974 2% 5,998 4,877 23% - Volumes sold (Mn Ltr) 48.41 43.33 12% 49.77 -3% 98.19 84.37 16% - Avg. Realisation (Rs/Ltr) 62.5 58.5 7% 59.7 5% 61.1 57.8 6% Fran

  16. Slide 16: Update on Capacity and Capacity Utilisation

    Update on Capacity and Capacity Utilisation 53.8 64.8 65.8 59.5 57.3 49.2 10.5* (Figures in Mn Litre) 12.3 -2.1 -1.1 -7.5 -9.6 -17.7 -0.8 54.7 54.7 66.9 66.9 66.9 66.9 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Installed Capacity at the start of the Qtr Capacity Addition during the Qtr Unutilised Cap

  17. Slide 17: Manufacturing Business Key Highlights

    Manufacturing Business Key Highlights ▪ Grain prices were higher in Q2FY24 as compared to Q1FY24, and the impact was ~Rs. 17 Cr ▪ West Bengal and Jharkhand plants faced production loss for a combined period of ~43 days in FCI Disruption Q2FY24, and the impact was ~Rs. 25 Cr ▪ As the above two units

  18. Slide 18: Grain Ethanol Landscape in India

    Grain Ethanol Landscape in India Inherent Business Strength of GSL - The current opportunity in Ethanol • In Ethanol Supply Year 2022-23 (ended Oct), total ethanol supply was 500 Cr litres representing 12 % petrol blending of which Grain ethanol was 26% • Supply needs to increase by 6,000 million in

  19. Slide 19: Profit & Loss Highlights

    Profit & Loss Highlights Particulars (Rs Mn) Q2FY24 Q2FY23 YoY (%) Q1FY24 QoQ (%) H1FY24 H1FY23 YoY (%) Net Revenue 5,672 4,803 18.1% 5,701 -0.5% 11,372 9,757 16.6% Other Income 35 21 19 54 38 Total Income 5,707 4,824 18.3% 5,720 -0.2% 11,427 9,795 16.7% Raw Material Cost 3,825 2,829 3,369 7,194 5,7

  20. Slide 20: Balance Sheet

    Balance Sheet Liabilities (Rs mn) Mar-23 Sep-23 Assets (Rs mn) Mar-23 Sep-23 Networth 8,866 9,238 Fixed assets (incl. CWIP) 9,249 9,818 LT borrowings 1,112 941 Investments 0 0 Provisions 46 62 Other financial assets 683 640 Deferred tax liabilities 1,102 1,113 Income tax assets 32 30 Other non-curre

  21. Slide 21: Annual Financials

    21 Annual Financials

  22. Slide 22: Profit & Loss

    Profit & Loss Particulars (Rs Mn) FY20* FY21* FY22 FY23 Net Revenues from Operations 11,688 12,308 15,791 21,091 Other Income 37 66 66 78 Total Income 11,726 12,373 15,858 21,169 Total Expenditure 10,441 9,756 12,506 18,635 Consumption of Material 7,176 6,532 8,384 12,413 Employee Cost 343 384 501 6

  23. Slide 23: Key Ratios

    Key Ratios Particulars (% of Total Income) FY20* FY21* FY22 FY23 Gross Margin 39% 47% 47% 41% Employee Cost 3% 3% 3% 3% Other Expenditure 25% 23% 23% 26% EBITDA 11% 21% 21% 12% Finance Cost 2% 2% 1% 1% PAT 5% 12% 12% 6% • Consistently focusing on reducing debt from business cashflow; The Net Debt/Eq

  24. Slide 24: Balance Sheet

    Balance Sheet Liabilities (Rs mn) Mar-21* Mar-22 Mar-23 Assets (Rs mn) Mar-21* Mar-22 Mar-23 Networth 5,907 7,723 8,866 Fixed assets (incl. CWIP) 6,269 7,676 9,249 LT borrowings 1,067 1,089 1,109 Investments 0 0 0 Provisions 30 33 46 Other financial assets 176 274 683 Deferred tax liabilities 494 88

  25. Slide 25: Cashflow Deployment – FY23

    Cashflow Deployment – FY23 Cash Flow Extract (Rs Mn) FY23 Net cash generated from Operating Activities (A) 1,224 Net cash used in Investing Activities (B) (2,119) Net cash used in Financing Activities (C) 863 Net (decrease)/ increase in cash and cash equivalents (A+B+C) (32.5) Add: Cash & Cash equiv

  26. Slide 26: Capital Market Related Information

    Capital Market Related Information Shareholding Pattern (as on 30-Sept-23) Script Related Information (as on 08-Nov-23) BSE/NSE Code 533104 | INE615I01010 Non- Institutuion CMP (Rs) 844 39.39% Promoter Market Cap (Rs Cr) 2,431 Group 51.02% Shares (Cr) 2.88 Institutuion 9.59% Face Value (Rs) 10.0 26

  27. Slide 27: 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

  28. Slide 28: Let's Connect

    Let’s Connect Mr. Bhaskar Roy Globus Spirits Limited Phone : +91 11 6642 4600 Email : broy@globusgroup.in Ms. Pooja Sharma / Mr. Suyash Samant Stellar IR Advisors Pvt. Ltd. Phone : +91 22 6239 8024 Email : pooja.sharma@stellar-ir.com suyash@stellar-ir.com

Globus Spirits — Q2 FY24 Earnings Presentation on 6ix