Som Distilleries Receives Permission To Sell Beer In Telangana, Shares Down 5%

Som Distilleries and Breweries stated that obtaining permission to sell in Telangana is an important step towards increasing its market share.

On Monday, May 27, Som Distilleries and Breweries declared that the Telangana government has granted permission for the company to market its beer brands throughout the state. The company's shares were down 5% at 12:04 PM on the NSE, trading at ₹132.20, despite this encouraging outcome.

In a recent filing with the stock exchange, Som Distilleries stated that obtaining permission to sell in Telangana is an essential first step towards increasing its market share. Telangana is one of the largest beer-drinking markets in India, and the firm anticipates a significant short- to medium-term increase in sales volume as a result of this new market entry.

Som Distilleries and Breweries recently released financial results for the March quarter and the entire fiscal year 2023–2024, showing growth in both revenue and net profit. The company’s consolidated revenue from operations for the March quarter increased by more than 53% to ₹738.71 crore compared to ₹482.36 crore in the same period last year. The operational revenue also increased 47.50% from ₹500.79 crore in the December quarter. The company's operating revenue climbed by almost 64% to ₹2,464.28 crore for the full FY24, from ₹1,498.04 crore in FY23.

In the March quarter of the current fiscal year, Som Distilleries and Breweries' consolidated profit after tax (PAT) jumped by nearly 25% to ₹19.98 crore from ₹15.87 crore in the corresponding quarter of the previous fiscal year. PAT climbed by more than 11% on a QoQ basis for the March quarter. Over the course of FY24, the company's PAT climbed 42%, rising from ₹60.3 crore in FY23 to ₹86.49 crore.