GM Breweries stock down on weak Q4 operational margin; dividend, bonus issue announced
Upstox
2 min read • Updated: April 4, 2024, 2:33 PM
Summary
GM Breweries announced that its board has recommended an interim dividend of ₹7 per equity share. The board also gave its nod to the issue of bonus shares in 1:4 ratio, i.e. one new fully paid bonus equity share of ₹10 each for every 4 existing fully paid equity shares.
The shares of GM Breweries fell by up to 4% during intraday trading after the liquor maker showed weak operational margin in the financial results declared for the quarter ended December 2023.
Even though the company reported a standalone net profit of ₹86.6 crore in Q4 FY24, more than double as against ₹35.1 crore a year ago, the revenue from operations grew marginally to ₹623 crore from ₹603 crore in the year-ago period, and from ₹618 crore in the preceding quarter.
The surge in profit was mainly driven by an increase in other income, which came in at ₹70 crore as compared to ₹15 crore in the Q4 FY23 and ₹6.8 crore in Q3 FY24.
After the company declared the results, the stock came down to ₹752 apiece on the National Stock Exchange (NSE) at around 12:40 pm, down 4% as against the previous day’s close.
Dividend, bonus issue announced
Along with the quarterly results, GM Breweries announced that its board has recommended an interim dividend of ₹7 per equity share of face value of ₹10.
The board also gave its nod to the issue of bonus shares in 1:4 ratio, i.e. one new fully paid bonus equity share of ₹10 each for every 4 existing fully paid equity shares.
For the bonus issue, a total of 45.69 lakh shares will be issued by the company, as per the regulatory filing. An amount of ₹4.56 crore would be capitalised from free reserves for the issue, it added.