GM Breweries fizzles out before Q4 numbers

GM Breweries will be announcing its Q4 and FY16 numbers today, the first almost always amongst all listed companies. Despite a good Q3 performance and expectations of Q4 being good too, the stock price is down in the red. It has slumped down over 4.5% to the days low-point currently at Rs.982, going down below Rs.1000-mark.

The company did post a good set of numbers for Q3FY16. It had ended the quarter with an excellent 66% (QoQ) and jaw dropping 160% (YoY) rise in net profit at Rs.16 crore. Margins have improved significantly from 17.8% to 24.1% (QoQ) and this was mainly on account of lower raw material costs. Operating costs were down 9%. Operating profit has risen over 34% at Rs.22 crore. Its 9MFY16 net profit at Rs.41 crore is already over twice the FY15 net profit of Rs.19 crore. The lower base effect was also at play but overall it was a great performance.