G M Breweries fell 1.44% to Rs 382.80 after the company's consolidate net profit tumbled 85.1% to Rs 2.43 crore in Q1 FY21 from Rs 16.27 crore in Q1 FY20.
Net sales declined 76.5% year-on-year (YoY) to Rs 27.87 crore during the quarter. Profit before tax (PBT) stood at Rs 3.24 crore in Q1 FY21, down by 87.1% from Rs 25.02 crore in Q1 FY20. Current tax expense declined 90.7% YoY to Rs 0.81 crore in the first quarter.
With respect to the impact of COVID-19 pandemic on operations, the company said that its operations were allowed to be restarted from 20 May 2020. However, sales of the company's products are still not permitted in Mumbai, Thane, Solapur & some other region, the principal market for company's products. The sale to the markets mentioned herein constitutes to around approximately 80 to 85% of the total company's sale as reported in quarter ended June 2019 & quarter ended March 2020.
"In view of the restrictions on sale of country liquor due to extension of lockdown, the sale for the current quarter ended 30 June 2020 has been reduced by 15,83,034 boxes i.e. 1.39 crore bulk litre in comparison to quarter ended 30 June 2019. This has resulted in eventual reduction of profit at EBIT and net profit level," the liquor maker said in a filing.
G M Breweries is engaged in manufacturing and marketing of alcoholic beverages such as country liquor (CL) and Indian made foreign liquor (IMFL).
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