Som Distilleries – Q3FY20 Concall – Nirmal Bang Sec.
Outlook – Neutral
The company maintained that business environment is challenging. On above of that, all key raw materials experienced considerable price increases yoy which impacted the margins for the quarter. In addition, prolonged monsoon and cold wave impacted demand of beer.
The company has commissioned canning line at Orisssa – would lead to margin improvement in Q4FY20 though management see some pressure on the existing margins. Going forward, the company has taken conscious decision to increase the share of IMFL in sales.
FY20 guidance - The company maintained its earlier guidance of Rs 475 -500 cr consolidated sales and margins in the range of 13.75%-14%