In afternoon trading on April 4, shares of GM Breweries fell more than 4% following the company’s announcement of a steep drop in its EBITDA margin for the fourth quarter of FY2.
GM Breweries’ shares were trading at Rs 262 on the NSE at 12:33 p.m
The operating margin of the company experienced a significant decline from 20.1 percent to 15.8 percent during the January-March quarter. The company’s operational success was hindered by increased costs associated with inventory fluctuations.
The company’s revenue increased marginally by 2.1 percent year over year to Rs 159.20 crore from Rs 155.90 crore, while its net profit for the quarter was Rs 86.6 crore, up from Rs 35.1 crore a year earlier.
The board of the corporation also suggested issuing bonus shares in a 1:4 ratio. The company would utilize Rs 4.56 crore of its free cash reserves for the incentive issuance, leaving it with Rs 804.03 crore in reserves. A 7 rupee dividend for each stake was approved by the board.
