Globus Spirits extends decline to second day, tumbles 16% post dismal Q2FY25 results

The decline came on the back of muted July-September quarter (Q2FY25) performance

Shares of Globus Spirits extended its loss to second consecutive day, down over 16 percent to Rs 890 per share on November 13. The decline came on the back of muted July-September quarter (Q2FY25) performance.

With this drop, the stock is down over 20 percent in the past one month, underperforming benchmark Nifty 50's 5 percent decrease. Earlier, Globus Spirits had hit 52-week high of Rs 1,373 apiece on September 17, 2024.

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In Q2FY25, the liquor company reported 88 percent YoY drop in standalone net profit at Rs 1.5 crore from Rs 13 crore in the year-ago period.  However, the company's standalone revenue from operations rose 18 percent YoY to Rs 875 crore in Q2FY25 as compared to Rs 739 crore in Q2FY24.

The management said that Delhi dispatches were affected in Q2 due to transition in new portal by Delhi excise. "It is stable since October and business has bounced back. Faced packing costs pressure in H1FY25, working on easing them in H2FY25," the company added.

At the operating level, the company's EBITDA stood at Rs 30 crore in Q2FY25, as compared to Rs 38 crore a year ago, which implies a decline of 21 percent. As a result, EBITDA margins saw a sharp contraction to 3.4 percent in Q2FY25 as against 5.1 percent in Q2FY24.

Globus Spirits gained prominence for producing a variety of spirits, including whisky, rum, vodka, and gin. It is often associated with crafting high-quality products that appeal to both domestic and international markets.

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