Slide 1: Q2 & H1 FY17 Investor Presentation
GLOB U S S P IRI T S L IMI T E D Q2 & H1 FY17 Investor Presentation 14 N o v e m b e r 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: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL, and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA – Distillery capacity of ~90 million bulk litres (to be expanded to ~150 million bulk litres by Q3 FY17) MANUFACTURING EXCELLENCE – State of the art manufact
Slide 4: Agenda
AGENDA Q2 & H1 FY17 Performance Key Highlights 5 Greenfield Operations 7 Financial Performance 8 Annexure Company Overview 15 Shareholding Pattern 21 Financials 22 4
Slide 5: Q2 FY17 – Key Performance Highlights
Q2 FY17 – KEY PERFORMANCE HIGHLIGHTS • Overall performance in Q2 FY17 was subdued owing to significant increase in raw material prices as well as seasonal impact in terms of slower seasonal demand – Standalone revenue from operations stood at Rs. 1,618.6 mn in Q2 FY17 – EBITDA came in at Rs. 113.3 m
Slide 6: Q2 FY17 – Key Performance Highlights
Q2 FY17 – KEY PERFORMANCE HIGHLIGHTS • Franchise IMFL as well as DDGS segment reported healthy revenue growth – Franchise IMFL revenues grew by 19% Y-o-Y to Rs. 196.3 mn supported by strong volume growth of 22% – Revenues from IMIL stood at Rs. 909.5 mn, higher by 5% YoY • Unexpected increase in the
Slide 7: Update on Greenfield Operations – Bihar & West Bengal
UPDATE ON GREENFIELD OPERATIONS – BIHAR & WEST BENGAL • Greenfield Distillery Project in Bihar & West Bengal – Key growth driver in FY17 & FY18 – Greenfield distilleries in Bihar & West Bengal would start commercial operations from Q3 FY17 – anticipate optimal utilizations from Q4 FY17 onwards • Ove
Slide 8: Q2 FY17 YoY – Performance Overview
Q2 FY17 YoY – PERFORMANCE OVERVIEW • Revenue from operations (Net) stood flat in Q2 FY17 at Q2 FY17 Q2 FY16 Rs. 1,619 mn owing to high raw material prices which in turn impacted the bulk alcohol volumes – Bulk Alcohol volumes declined by 31% YoY – Franchise IMFL volumes improved by 22%; Others Rs. 1
Slide 9: H1 FY17 YoY – Performance Overview
H1 FY17 YoY – PERFORMANCE OVERVIEW • Revenue from operations (Net) grew by 12% to Rs. 3,581 mn H1 FY17 H1 FY16 in H1 FY17 on account of healthy traction in both Franchise IMFL and IMIL business – Franchise IMFL volumes improved by 23%; while IMIL volumes increased by 6% Rs. 3,581 mn 12% Rs. 3, 196 m
Slide 10: Q2 & H1 FY17 YoY – Adjusted Financials
Q2 & H1 FY17 YoY – ADJUSTED FINANCIALS Particulars Q2 FY17 Q2 FY16 Growth (%) H1 FY17 H1 FY16 Growth (%) Net Revenue 1,619 1,618 0.06 3,581 3,196 12.05 Revenue of bottling customers in Rajasthan 106 105 0.95 265 248 6.85 Adjusted Revenue 1,513 1,513 - 3,316 2,948 12.48% EBITDA 113 133 (15.04%) 306 2
Slide 11: Franchise IMFL & DDGS Supported Performance
FRANCHISE IMFL & DDGS SUPPORTED PERFORMANCE Breakup of Revenue from Operations • Revenues from manufacturing business stood at Rs. 709 IMFL, 0% mn in Q2 FY17, down by 5% YoY Bulk Alcohol, 19% – Steep increase in the prices of grain during the quarter had a cascading impact on Bulk Alcohol revenues Q
Slide 12: IMIL Driven by Healthy Volumes in Haryana & Rajasthan
IMIL DRIVEN BY HEALTHLY VOLUMES IN HARYANA & RAJASTHAN • Aggregate IMIL revenues up 5% YoY Rajasthan IMIL – This was achieved despite zero revenues from Bihar in Q2 800 1.96 2.50 1.69 FY17 as compared to Rs. 102 crore in the same period last 600 2.00 year 400 1.50 1.00 • Both Haryana and Rajasthan w
Slide 13: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS • Capacity utilization improved to 83% in Q2 FY17 compared to Production & Capacity Utilization 81% in the same period last year 20.0 81% 83% 84% 81% 10.0 18 19 78% • Bulk Alcohol revenues decreased by 25% YoY 0.0 75% Q2 FY16 Q2 FY17 – A combination of fa
Slide 14: Agenda
AGENDA Q2 & H1 FY17 Performance Key Highlights 5 Greenfield Operations 7 Financial Performance 8 Annexure Company Overview 15 Shareholding Pattern 21 Financials 22 14
Slide 15: 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 – 1.95 mn cases in sold in Q2 FY17, up 16% YoY • No. 2 private player in Haryana with 16% market share – 0.78 mn cases in sold in Q2 FY17, up 36% YoY • To entered East India: Distillery to be
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 ~90 million bulk litres of distillery capacity • Present in DDGS – a high-potential co-product used as Animal Feed 360o • Well p
Slide 17: 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 18: 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 19: 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 20: 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 21: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 26% Promoter Group 57% FII 17% As on September, 30, 2016 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 21
Slide 22: Q2 & H1 FY17: Profit & Loss Statement
Q2 & H1 FY17: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q2 FY17 Q2 FY16 YoY (%) Q1 FY17 QoQ (%) H1 FY17 H1 FY16 YoY (%) Gross Sales 2,344.37 2,159.82 9% 2,821.09 -17% 5,165.45 4,498.87 15% Less- Excise duty & Discounts 726.99 548.18 33% 861.67 -16% 1,588.66 1,310.07 21% Net Sales 1,6
Slide 23: Q2 FY17: Key Ratios
Q2 FY17: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q2 FY17 Q2 FY16 Q1 FY17 H1 FY17 H1 FY16 EBITDA 7% 8% 10% 9% 9% PAT 0% 1% 3% 2% 1% Total Expenditure 93% 92% 90% 92% 91% Raw material 60% 58% 59% 59% 58% Employee Cost 2% 3% 2% 2% 3% Other Expenditure 31% 32% 30% 30% 30% Intt 2% 3% 2%
Slide 24: Q2 FY17: Balance Sheet
Q2 FY17: BALANCE SHEET Particulars (In Rs MN) 30th Sep 2016 31st Mar 2016 Liabilities Shareholders’ Fund 3,699.0 3,635.4 Non-Current Liabilities 2,251.9 2,073.7 Long term borrowings 1,770.4 1592.5 Deferred tax liabilites (Net) 469.3 470.3 Long-term provisions 12.3 11.0 Current Liabilities 2,078.0 1,
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