Wednesday, Feb 11: Shares of Som Distilleries and Breweries declined nearly 7% in Wednesday’s session after the company reported a sharp drop in its December quarter earnings, with profitability and margins coming under significant pressure.
The stock was trading around Rs 90.00, down 6.34%, as investors reacted to weak Q3 numbers.
The company reported a 76% year-on-year fall in net profit to Rs 4.6 crore, compared with Rs 19.2 crore in the same quarter last year. Revenue for the quarter declined 16.8% to Rs 250.5 crore, down from Rs 301.1 crore a year ago, indicating softer sales performance.
Operating performance also deteriorated. EBITDA dropped 45.4% year-on-year to Rs 19.9 crore, compared with Rs 36.4 crore in the year-ago period. EBITDA margin contracted sharply to 7.9% from 12%, reflecting reduced operating efficiency and margin pressure.
The sharp fall in profitability, along with declining revenue and margin compression, appears to have weighed on investor sentiment, triggering selling pressure in the stock during Wednesday’s trade.
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