Globus Spirits zooms 11% as co commissions additional capacity at two units

The company commenced commercial production of additional capacity at two of its existing units located in Jharkhand, and West Bengal

Shares of liquor maker Globus Spirits sprinted as much as 10.7 per cent to Rs 736.4 per share in Monday's intraday deals on the BSE after the company began commercial operations at additional capacity at two existing units. 

At 11:40 AM, the stock was quoting 9.5 per cent higher at Rs 728 per share as against a half a per cent rise in the benchmark S&P BSE Sensex. The stock, however, is still 44 per cent down from its 52-week high level of Rs 1,326 per share.

"On March 28, 2024, the company commenced commercial production of additional capacity at two of its existing units located at District East Singhbhum, Jharkhand, and at Panagarh, West Bengal," it said in a statement.

With this expansion, the capacity of the units will increase from 140KLPD to 200KLPD at Jharkand, and from 240KLPD to 300KLPD at West Bengal. The additional capacity will be used for various products including ENA and Ethanol. 

"The expansion has been completed\ with a total investment of Rs142 crore financed largely through internal accruals and a term loan drawdown of Rs 14 crore," the company said.

Globus Spirits Ltd manufactures, markets, and sells liquors, sanitisers, animal feed, CO2, bioethanol, and bulk alcohol. The company's product portfolio includes whisky, brandy, vodka, rum, and gin. 

Some of Globus Spirits' products include County Club, French Castle, Bagpiper Whisky, Ghoomar, Moghul Monarch, Derby Special, Officer's Choice Whisky, Heer Ranjha, Country Club, French Castle, Hannibal Legendary, White Lace, Governor's Reserve, Old Matured, Oakton Barrel, and L'Affaire Napoleon. 

It also offers export, distillation, and bottling services. Globus Spirits also manufactures and sells third-party branded products through its blending and bottling facilities. It markets products in India and exports to Europe, Africa, Japan, the Middle East, Asia, and the Far East. 

Financially, the company's net profit surged 64.8 per cent year-on-year to Rs 44.4 crore in the October-December quarter on 16.1 per cent increase in net sales to Rs 687.5 crore.

Its profit before tax stood at Rs 19.5 crore, down 51.3 per cent Y-o-Y and up 11.8 quarter-on-quarter.

Ebitda was at Rs 43.1 crore in Q3FY24, down 28.3 per cent Y-o-Y and up 4.9 per cent Q-o-Q. Ebitda margin stood at 6.2 per cent during the quarter, lower than 7.2 per cent in Q2FY24 and 10.1 per cent in Q3FY23.