This Ethanol and Alcohol stock which is in the business of manufacturing and trading of Extra Neutral alcohol (ENA), Country Liquor, and Indian Made Foreign Liquor surged by 7 percent after announcing a net profit jump of 107 percent year on year.
Price Movement
In Monday’s trading session, Associated Alcohols & Breweries Ltd‘s share price touched a day’s high of Rs. 1,217.35, which was up by 7.5 percent. The share price reiterated from the day’s high and was trading at Rs. 1,180.15, which is 4.23 percent higher than the previous closing price of Rs. 1,132.30. In the past year, the stock has delivered around 137 percent and has outperformed the Nifty Index.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 334.26 crore which increased by 73.46 percent year on year, from Rs. 192.69 crore in Q3FY24 and a 29.39 percent increase from Rs. 258.32 crore in Q2FY25. Their net profit increased by 107.58 percent year on year, from Rs. 12.56 crores in Q3FY24 to Rs. 26.08 crores in Q3FY25. Quarterly, the profits were up by 70 percent from Rs. 15.32 crore.
Revenue Segments
The company has earned its revenue from Potable Alcohols which contributes around 62 percent and the remaining 38 percent from the Ethanol business as of Q3FY25. The Operating profit from Potable Alochols contributes around 81.65 percent and the remaining 18.34 percent from Ethanol. The company has started earning in Ethanol in this quarter compared to the previous year’s nil sales.
Revenue Guidance
Associated Alcohols is expected to grow its B2C segment which includes IMFL (Properitory) business to grow by 15 to 18 percent year on year, IMFL (Licensed) by 12 to 15 percent year on year, and Premium Line of Products by 18 to 20 percent growth year on year. The B2B segment which comprises Ethanol and is expected to achieve full capacity in FY25.
About the company
Associated Alcohols & Breweries Limited was founded in 1989. It is one of the major Indian distillers producing Extra Neutral Alcohol (ENA), IMIL, and IMFL with a state-of-the-art facility in Madhya Pradesh. They have started producing Ethanol in recent times with an installed capacity of 40 MLPA and supply to OMCs and produce for Cattle Feeds.
Written by Santhosh S
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