Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q1 FY17 Earnings Presentation
21 slides from Globus Spirits's earnings presentation, Aug 9, 2016
Slide 1: Q1 FY17 Investor Presentation
GLOB U S S P IRI T S L IMI T E D Q1 FY17 Investor Presentation 0 9 A u g u s t , 2 016
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: Agenda
AGENDA Q1 FY17 Performance Key Highlights 4 Financial Performance 6 Annexure Company Overview 11 Shareholding Pattern 17 Financials 18 3
Slide 4: Q1 FY17 – Key Performance Highlights
Q1 FY17 – KEY PERFORMANCE HIGHLIGHTS • Healthy traction in IMIL, Bulk Alcohol and DDGS led to strong financial & operational performance; Further supported by higher production and capacity utilization of 88% (Vs. 72% in Q1 FY16) – Standalone revenue from operations up 25% YoY to Rs. 1,964 mn in Q1
Slide 5: Commissioned Greenfield Operations in Bihar
COMMISSIONED GREENFIELD OPERATIONS IN BIHAR • Commissioned Greenfield Distillery Project in Bihar – Key growth driver in FY17 – Greenfield Project in Bihar was commissioned in August 2016; Commercial production to start by the end of the current month • This would result in significantly higher fina
Slide 6: Q1 FY17 YoY – Solid Growth Continues
Q1 FY17 YoY – SOLID GROWTH CONTINUES.... • Revenue from operations (Net) up 25% YoY to Q1 FY17 Q1 FY16 Rs. 1,964 mn in Q1 FY17 driven by healthy growth in Bulk Alcohol and IMIL segments; This was further aided by strong traction in DDGS – Bulk Alcohol volumes improved by 34% YoY led by robust off ta
Slide 7: Higher Alcohol Production Supported Overall Performance
HIGHER ALCOHOL PRODUCTION SUPPORTED OVERALL PERFORMANCE Breakup of Revenue from Operations IMFL, 0% Bulk • Revenues from manufacturing business stood at Rs. Alcohol, 23% 955 mn in Q1 FY17, higher by 32% YoY – This was possible due to 35% gains in Bulk Alcohol segment as well as 45% growth in DDGS; Q
Slide 8: IMIL Driven by Solid Volume Off Take in Haryana
IMIL DRIVEN BY SOLID VOLUME OFF TAKE IN HARYANA • Aggregate IMIL revenues up 19% YoY, on account of healthy Rajasthan IMIL volumes in Haryana & Rajasthan 800 1.64 1.98 2.50 600 2.00 • Haryana witnessed strong growth of 95% in Q1 FY17, while 400 1.50 1.00 growth in Rajasthan stood at 21% 200 538 649
Slide 9: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS; DRIVEN BY BETTER CAPACITY UTILISATION Production & Capacity Utilization 30.0 72% 88% 100% • Capacity utilization improved significantly to 88% in Q1 15.0 50% 16 20 FY17 compared to 72% in Q1 FY16 resulting in higher 0.0 0% production of 20 mn BL in Q1 FY
Slide 10: Agenda
AGENDA Q1 FY17 Performance Key Highlights 4 Financial Performance 6 Annexure Company Overview 11 Shareholding Pattern 17 Financials 18 10
Slide 11: Globus 360º Alcobev Player - Foray into East
GLOBUS 360º ALCOBEV PLAYER - FORAY INTO EAST • No. 1 private player in Rajasthan IMIL with 28% market share – 2.8 mn cases in sold in Q1 FY17, up 20% YoY • No. 2 private player in Haryana with 16% market share – 1.1 mn cases in sold in Q1 FY17, up 95% YoY • Entered East India with recently commissio
Slide 12: 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 ~116 million bulk litres of distillery capacity (incl recently commissioned Bihar facility) • Present in DDGS – a high-potential
Slide 13: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North • Large market share in IMIL by India (Haryana & Rajasthan) offering quality products to the • Amongst the largest grain based consumer distilleries in India • Establish sustainable premium • Strong IMIL brands that have brands in IMFL ac
Slide 14: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Locational advantages like lower raw material costs, higher realizations and other logistical benefits to drive overall Existing profitability facilities at • Alcohol manufactured from Bihar Haryana & distillery can be exported to Rajasthan neighboring sta
Slide 15: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned Tribute to Rajasthani folk as awesome mix of natural lemon dance ; blend popular in the flavor with strong yet smooth harsh winter months of the blend profile desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 16: 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 distillation technology, zero • Helps capture IMFL growth via franchisee discharge and highest grain- recovery in
Slide 17: Shareholding Pattern
SHAREHOLDING PATTERN Individuals & Others 22% Corporate Bodies Promoter 3% Group 57% FII 18% As on June 30, 2016 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 17
Slide 18: Q1 FY17: Profit & Loss Statement
Q1 FY17: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q1 FY17 Q1 FY16 YoY (%) Q4 FY16 QoQ (%) FY16 FY15 YoY (%) Gross Sales 2,826.12 2,339.42 21% 2,749.47 3% 9,930.68 8,827.64 12% Less- Excise duty & Discounts 861.67 761.89 13% 839.70 3% 2,863.64 2,982.71 -4% Net Sales 1,964.44 1,577.53
Slide 19: Q1 FY17: Key Ratios
Q1 FY17: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q1 FY17 Q1 FY16 Q4 FY16 FY16 FY15 EBITDA 10% 10% 12% 10% 8% PAT 3% 2% 2% 2% 1% Total Expenditure 90% 90% 88% 90% 92% Raw material 59% 59% 58% 58% 60% Employee Cost 2% 2% 2% 2% 2% Other Expenditure 30% 29% 28% 30% 29% Intt 2% 2% 2% 2%
Slide 20: Q1 FY17: Balance Sheet
Q1 FY17: BALANCE SHEET Particulars (In Rs MN) 31st March 2016 30th June 2016 Liabilities Shareholders’ Fund 3,635.4 3,698.7 Non-Current Liabilities 2,073.7 2,255.7 Long term borrowings 1,592.5 1,776.0 Deferred tax liabilites (Net) 470.3 468.3 Other long term liabilities/ provisions 11.0 11.5 Current
Slide 21: 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