Concurrently, the agency has reaffirmed the company's long-term rating at "CARE A+; Stable”.

CARE Ratings said that the rating action takes into account the improvement in the financial performance of the company during FY22 (refers to the period April 1 to March 31) while maintaining healthy profitability margins and consequent improvement in the capital structure and debt protection metrics. The rating action also factors-in the increase in revenue potential attributable to increase in the installed capacity post successful commissioning of project at West Bengal in FY22.

The ratings further continue to draw strength from experienced promoter and management team of the company, its significant presence in the country liquor (CL) segment & also in the bulk alcohol (ENA and ethanol) segment and experience in bottling for large Indian Made Foreign Liquor (IMFL) players and satisfactory capacity utilization in FY22.

The ratings, however, continues to remain constrained by project implementation risk, continued subdued performance of IMFL segment (own brand), volatility in the input prices with limited pricing power and highly regulated nature of Alcohol industry.

Globus Spirits is engaged in the business of manufacturing, marketing and sale of branded IMFL, IMIL and bulk alcohol comprising of rectified spirit and extra neutral alcohol (ENA) and also involved in franchisee bottling to cater to renowned brand owners. The company operates four modern and fully integrated grain-based distilleries at Behror (Rajasthan), Samalkha (Haryana), Panagarh (West Bengal) and Bihar having a combined capacity of approximately 233 million litres per annum.

The company had reported a PAT of Rs 35.84 crore (down 26% YoY) and net revenue from operations of Rs 540.96 crore (up 13% YoY) for the quarter ended on 31 March 2023.

The scrip rose 1.30% to currently trade at Rs 1307 on the BSE.