Any current/future new fundraising through debt or equity?

Som Distilleries & Breweries plans capacity expansion in Odisha with a capex of Rs. 30-40 crores, expected to start by December 2024 and complete by April 2025. The funding for expansion will come from a mix of equity and debt. The equity portion involves the exercise of certain warrants by promoters, not fresh dilution. The company currently has no plans for fresh equity dilution. They do not have immediate plans for stock buybacks or dividend payments, focusing on growth and expansion instead.

Any current/future capex/capital investment/strategic investment?

Som Distilleries & Breweries is planning a capacity expansion in Odisha, expected to start by December 2024 and complete by April 2025. The planned capex for this expansion is in the range of Rs. 30 to 40 crores. The company is considering acquisitions or Greenfield investments in new states they want to enter, likely targeted for the next year (post-FY25). The Odisha plant capacity utilization crossed 100% in Q1 FY25, prompting the need for additional capacity. The funding for expansion will come through a mix of equity (through promoter warrants exercise, not fresh dilution) and debt. No fre

Future growth expectations in sales/revenue/volumes?

Som Distilleries & Breweries expects full financial year net sales in the range of Rs. 1,500 to Rs. 1,600 crores for FY25. The company targets a revenue growth rate of approximately 20% to 25% for the next 3 years. Internally, they aim for a sustainable year-on-year growth rate of 25% to 30% over the next 2 to 3 years. Beer volumes rose 32% in Q1 FY25, and IMFL volumes increased by 14%, indicating strong volume growth momentum. Focus remains on consolidating market share in key states and expanding footprint in high-growth markets like Rajasthan, UP, Jharkhand, and Delhi. Capacity ex

Future growth expectations in earnings/operating earnings/profits/EPS?

Som Distilleries expects to maintain a strong growth trajectory with a sustainable growth rate of 22% to 25% over the next 3 years. For FY25 specifically, the company has guided net sales in the range of Rs. 1,500 to Rs. 1,600 crores. EBITDA margins are projected to be stable between 12% to 13%. The company targets year-on-year growth of 25% to 30% beyond FY25 for the next 2-3 years. Capacity expansions, especially in Odisha (Rs. 30-40 crores capex), will support volume growth and operational leverage. Premiumization is expected to improve brand perception but will contribute minimal

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Som Distilleries & Breweries LtdQ2 FY24Beverages

Som Distilleries & Breweries Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹69.8P/E: 20.6Market Cap: ₹1.8K CrSector: Beverages

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Som Distilleries & Breweries expects full financial year net sales in the range of Rs. 1,500 to Rs. 1,600 crores for FY25.
→The company targets a revenue growth rate of approximately 20% to 25% for the next 3 years.
→Internally, they aim for a sustainable year-on-year growth rate of 25% to 30% over the next 2 to 3 years.
→Beer volumes rose 32% in Q1 FY25, and IMFL volumes increased by 14%, indicating strong volume growth momentum.
→Focus remains on consolidating market share in key states and expanding footprint in high-growth markets like Rajasthan, UP, Jharkhand, and Delhi.
→Capacity expansion plans (e.g., Odisha plant) are in place to support volume growth, with current utilizations reaching or exceeding 100% in some plants.
→Premiumization is underway, with plans to launch premium products this financial year to enhance brand perception, though volume contribution from premium segment will be limited.

Margin guidance

Category 3

→Som Distilleries expects to maintain a strong growth trajectory with a sustainable growth rate of 22% to 25% over the next 3 years.
→For FY25 specifically, the company has guided net sales in the range of Rs. 1,500 to Rs. 1,600 crores.
→EBITDA margins are projected to be stable between 12% to 13%.
→The company targets year-on-year growth of 25% to 30% beyond FY25 for the next 2-3 years.
→Capacity expansions, especially in Odisha (Rs. 30-40 crores capex), will support volume growth and operational leverage.
→Premiumization is expected to improve brand perception but will contribute minimally to volume growth.
→Profits have grown steadily; for Q1 FY25, net profit margin was 7.3%, with a 31% YoY increase in profit before tax.
→EPS growth is implied through consistent volume expansion and margin stability, backed by market share gains in key states.

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Fundraise plans

Yes

→Som Distilleries & Breweries plans capacity expansion in Odisha with a capex of Rs. 30-40 crores, expected to start by December 2024 and complete by April 2025.
→The funding for expansion will come from a mix of equity and debt.
→The equity portion involves the exercise of certain warrants by promoters, not fresh dilution.
→The company currently has no plans for fresh equity dilution.
→They do not have immediate plans for stock buybacks or dividend payments, focusing on growth and expansion instead.

Order book

The transcript provided does not contain any specific information regarding the current or expected orderbook or pending orders for Som Distilleries & Breweries Limited. The discussion mainly covers: - Q1 FY25 financial and volume performance - Capacity utilization and expansion plans (notably in Odisha) - Growth guidance and industry outlook - Premiumization strategy and product launches - Capex plans involving Rs. 30-40 crores - Market share and geographic expansion No direct references to orderbooks, pending orders, or similar backlog metrics were mentioned or disclosed during the call.

Capex plans

Yes

→Som Distilleries & Breweries is planning a capacity expansion in Odisha, expected to start by December 2024 and complete by April 2025.
→The planned capex for this expansion is in the range of Rs. 30 to 40 crores.
→The company is considering acquisitions or Greenfield investments in new states they want to enter, likely targeted for the next year (post-FY25).
→The Odisha plant capacity utilization crossed 100% in Q1 FY25, prompting the need for additional capacity.
→The funding for expansion will come through a mix of equity (through promoter warrants exercise, not fresh dilution) and debt.
→No fresh equity dilution is currently planned for this capex.
→Apart from Odisha, the company is focused on maintaining and improving capacity utilization in plants in MP, Karnataka, and other markets.

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