Globus Spirits Ltd
NSE:GLOBUSSPR
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
UnitedHealth Group Inc
NYSE:UNH
|
Health Care
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Walmart Inc
NYSE:WMT
|
Retail
|
| US |
|
Verizon Communications Inc
NYSE:VZ
|
Telecommunication
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
665.5
1 331.45
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Walmart Inc
NYSE:WMT
|
US |
|
|
Verizon Communications Inc
NYSE:VZ
|
US |
This alert will be permanently deleted.
Globus Spirits Ltd
You don't have any saved screeners yet
Good morning, everyone, and thank you for joining us on the call to discuss our performance in the quarter and half year ended September 30, 2020. Our team is on the call today. Mr. Vijay Rekhi, Chairman, Unibev; Dr. Bhaskar Roy, Chief Operating Officer, Globus Spirits, along with our Investor Relations team. I trust that everyone on this call is safe and healthy with lockdowns easing and largely a thing of the past in our markets. We are encouraged by the recovery of consumption, especially in rural and semi-urban areas and at products of low price points. We've also achieved near-normal levels of operations across all of our states and our factories. As a result, we have been able to deliver a good set of numbers in this quarter, and I would now like to take you through each of our business segments. On bulk alcohol, the government's continued push towards ethanol blending, ENA manufacturers have continued to benefit due to reduction of supply, of excess supply of ENA in the market. For the quarter ended September 30, we sold 28.3 million bulk liters as compared to 25.6 million bulk liters in the same period last year, and 20.6 million bulk liters in Q1 FY '21. Bulk alcohol realizations continued to be strong at INR 53 per liter as against INR 50 per liter in Q2 FY '20, up by about 6% year-on-year. Soft raw material prices and low fuel costs, coupled with improvement in our consumer business, has led to significant improvement in margins in this period. We believe that the structural change due to significant ethanol offtake has increased our margins for a long period of time. Our free cash flow generation too received a fill up due to this reason, and we believe our operational prowess for operating factories for longer days than competition and recovering higher amounts of alcohol for each unit of raw material will help us to deliver good performance in the future. Now coming to our consumer segment, country liquor or IMIL segments. The emergence of an hourglass-shaped market that we had alluded to in previous calls continues to be playing out. And our strong presence in IMIL segment as well as a nascent and upcoming position at the top end of the spectrum through Unibev will be extremely beneficial for Globus Spirits in the short run as well as in the long term. In the country liquor segment, Haryana and Rajasthan has posted strong recovery on the back of opening up of the state's economy post COVID restrictions. In Rajasthan, our market shares continues to remain strong and our volumes grew as the market has grown in the last quarter. The key performing state here has been Haryana with tighter controls on regulation of alcohol and a clamp down on illicit alcohol. We have seen industry come back to its actual level and our market share gaining as well, resulting in a double increase in volumes. In Haryana, we have increased our volume from 0.35 million cases in Q2 FY '20 to 0.68 million cases in FY -- in Q2 FY '21, which is 127% year-on-year growth. I'd like to now talk a little bit about other updates. We continue to focus, as always, on cost rationalization, debt reduction and increasing out the strength of our balance sheet. We are confident that the recent strides we have made, both in terms of operational as well as financial performance, augurs well for forthcoming quarters. And we are poised -- well poised to take advantage of the changes happening in the IMFL and IMIL market via an hourglass-shaped business. We are also in process of merging Unibev with Globus. This is a process that is on. We have received certain clearances and a few other clearances in NCLT are pending, and we expect this to be completed towards the end of this year. At this point, I request Mr. Rekhi to talk a little more about Unibev. Thank you.
Thank you, Shekhar. Good morning to everyone, and welcome to the earnings call. As we have updated you, Unibev has established its presence in Puducherry, Karnataka, Telangana in the south, West Bengal in the east, Andhra Pradesh also in the south, Chhattisgarh in the east, Odisha in the east, Maharashtra in the west, Goa in the west. However, on account of COVID-19 pandemic, our plans to expand presence in 5 more states are being rescheduled as our volumes at the top of the product pyramid are yet to recover. For now, we are working towards launching products in 1 more state in the next 2, 3 weeks. In fact, the deliveries are about to take off. On the trading side, Unibev's primary sales for the first quarter stood at 91% the same quarter in the previous year, despite retail point of sale not operating fully and considering disturbed trading conditions due to ad hoc increase in excise duties by most of the states. We have continued this trajectory of growth and have posted a growth of almost 36% year-on-year for H1 in FY '21 in primary sales. It is also heartening to note for Unibev that its secondary sales have grown by over 26% in the same period, indicating an increase in on-ground consumption. Our existing brands, Oakton and L'Affaire have demonstrated strong growth in H1 in FY '21 over the same period last year. In the wake of challenging trading environment, we have had to ensure that we are prudent with our investments and expansion. Our product launch of 7th Heaven blended with up to 21-year-old scotch is on track. And this will be introduced in premium outlets in selected states based on profit salience. At Unibev, our focus is to ensure longevity of operations, and we believe that our patient approach and deliberate approach in these markets will help us in the long run and will also help our entry to the new markets to get attention of the consumer, the products deserve. We will continue working with this philosophy and placing ourselves in terms of new launches. I now request Dr. Bhaskar Roy to share operational performance for Globus Spirits. Thank you.
Thank you, Mr. Rekhi. Good morning, everyone. I will now share the operational and financial performance of the company. During Q2 FY '21, the capacity utilization increased to 95% in Q2 FY '21 as against 86% of FY '20 Q2 and 59% of Q1 of FY '21. We are pleased to report that we have not only improved on a sequential basis but have surpassed our inflation rate in comparison to the previous year. IMIL volumes for the quarter stood at 3.35 million cases in quarter 2 FY '21 compared to 2.71 million cases in quarter 2 of FY '20 and 2.02 million cases in the previous quarter. The average realization, too, increased for the quarter and stood at INR 410 per case against INR 381 per case during quarter 2 FY '20. Franchisee working volumes in quarter 2 FY '21 is 1.04 million cases as compared to 0.90 million cases in quarter 2 of FY '20.
Dr. Roy, so sorry to interrupt, but if you can be a little closer to the device, please?
This is okay?
Yes, sir.
Bulk alcohol volumes FY '21...
Sir, so sorry to interrupt, but your voice is breaking up a bit, sir.
I'm trying to...
That's all right. I will step in here while Dr. Roy adjust his device. Franchisee volume in Q2 FY '21 stood at 1.04 million cases as compared to 0.98 million cases in quarter 2 FY '20. Bulk alcohol volumes sold for Q2 FY '21 stood at 28.34 million liters as compared to 25.64 million liters in Q2 FY '20. The revenue mix between manufacturing segment and consumer segment on a year-on-year basis saw a change with consumer segment increasing from 38% to 42% in Q2 FY '21 on the back of growth in both volumes and realization. Some key financials for half year ended and quarter ended September 30. During Q2 FY '21, stand-alone total income net of excise duty was reported at INR 3,298 million as against INR 2,728 million in Q2 FY '20, a growth of 20% year-on-year. For H1 FY '21, our revenue was INR 5,600 million, a marginal fall of 1.7% year-on-year despite the lockdowns that took place in April and May. As explained earlier, we were aided by several tailwinds in the industry. And as a result, our EBITDA almost doubled to INR 659 million in Q2 FY '21 as against INR 327 million in the same period last year. EBITDA margins expanded too by 800 basis points from 12% to 20% in Q2 FY '21. This is primarily attributable to higher bulk realizations due to the structural change spoken about earlier and softer revenue -- softer raw material prices and savings in fuel. In H1 FY '21, EBITDA stood at INR 1,075 million, accounting for a margin of 19.2%. The significantly expanded EBITDA translated into a strong growth in our PAT that came in at INR 357 million for Q2 FY '21 as compared to INR 137 million in Q2 FY '20, which is a growth of 162% year-on-year. For H1, FY '21 PAT was INR 558 million, a PAT margin of 10%. With enhanced free cash flow generation, debt reduction drive is ongoing and we implemented well, and we are on course to repay debt as scheduled for the current fiscal. This will aid our reduction in finance costs as well. This concludes financial highlights and request the moderator to open the forum for questions.
[Operator Instructions] The first question is from the line of Nitin Awasthi from East India Securities.
Firstly, congratulations on a great set of numbers and the amazing performance that the company has delivered. Just had a few questions on a few various topics actually. So I'll just go through them separately one by one. Firstly, with this election in Bihar, there has been a lot of talk of removing the probation instated by the government out there because of various reasons. Financially, it's not -- it's affecting the state badly, and it's not actually working. There is a lot of illicit liquor that's coming in. And you would have a closer ear to the ground, so just your thoughts on the same, are you hearing anything positive or any signs of reversal?
So anything that I may say on this is mere speculation. Political, the new government will be formed, they will then decide what is best for the state. All those reasons, all those facts mentioned by you are reported in the press, and we see these as well. And over a long period of -- over the long term, we remain very sure that prohibition will be reversed in Bihar. It needs to be for the good of the state. Whether it's going to happen with the new government being formed now is something that I cannot say.
Okay. Got it, sir. Sir, secondly, a lot of players in West Bengal are looking at moving and expanding their operations to Jharkhand. So this is not a very talked about market, so if you could just shed some light upon is it a very strong IMIL market? And is that the reason many players are looking at it? Is it underpenetrated? What is this opportunity? What is the size of the market? What is the company's focus on Jharkhand?
The company does not classify Jharkhand as a priority state for setting up alcohol capacity. It is not a spirit-deficit state. There is surplus spirit alcohol in Jharkhand. Of course, if you add up the Jharkhand ethanol requirement, then it is not a surplus. But from a potable alcohol standpoint, there is sufficient capacity in Jharkhand. In terms of IMIL, IMFL, it's a small market, and it's not a priority state for Globus currently. I cannot comment on other people investing or wanting to look at it.
Okay. And the government has taken out very good policies for all the ethanol manufacturers. And what they have said in particular is that they will also include -- they will not just rely on sugarcane and ethanol made from sugarcane. They will also be looking at everybody in parity who is making ethanol from even grain. So that would include you, which is a very good move from their side. Now they have also stated that they are ready to give soft loans to companies to set up fresh capacity to expand the capacity to meet this huge ethanol blending requirement. So your views on Globus or, looking at expansion, given this opportunity from the government and this push from the government coming your way?
So for Globus Spirits, setting up capacities has always been a way of getting access to the low-priced consumer business of the state, whether it's Rajasthan, Haryana or West Bengal. The real reason for setting up capacity is to capture the low-end consumer business, which is typically not serviceable without local capacities, without capacities within the state. And whilst we create and grow our distribution, it's good to have a profitable, how do I say it, bulk alcohol business that pays the bills. And we find that the spirit-deficit states are the ones that give us the largest margin on alcohol whilst we are building our consumer business. So there are some low-hanging fruits. We are expanding our capacity in West Bengal to some extent. But further greenfield projects at the moment have not been evaluated by the company.
Okay, sir. Sir, lastly, just a trend on the raw material side. If you could just highlight how is the pricing being? And how do you foresee it in the future?
Yes. So before I answer that, I also want to highlight that I speak of structural change in the alcohol business. Due to high ethanol lifting, especially from grain-based raw material. What that has done is it has given us control on our margins. It has not only expanded our margins, but it has given us control on margins. So any change in raw material prices, upwards or downwards, we believe that now the margins that we are enjoying will remain stable. The caveat to this, of course, is the extent of our ethanol business, which is a single price for the entire year as well as our consumer business, which is also a single price for the entire year. But having a flexible price ENA business on the side allows us to pass on cost increases that come and go over the year. So now specifically about how raw material is looking, we believe that this is all the advanced data that the government of India has released as rice cultivation is at its peak. We believe that raw material prices will remain soft for the next year.
The next question is from the line of Vivek Shah, an individual investor.
Sir, could you guide us the effective tax rate going forward? Because we see that on quarter-on-quarter, there has been quite a bit of change.
So Dr. Roy, could you please assist that?
[indiscernible] tax rate. Now what is happening is due to benefit of [indiscernible]
Dr. Roy, we are so sorry, but we are unable to hear you, sir.
[indiscernible] the company is getting and it will go on for 2, 3 years. [indiscernible]
Sorry, we can't actually hear you.
Dr. Roy, I think you need to change your location, please. We expect our tax rates to be around 28% to 30% going forward, largely due to a benefit that we are getting from our power section that allows us to keep our tax rate a little bit lower than others. I hope that answers your question.
All right. Yes. My second question is, sir, this quarter's growth, right? If you were to attribute the growth and split it between volume versus the ENA -- higher ENA realization versus the softer raw material prices and the fuel prices, right? What will be the rough split between volume in the lower soft [indiscernible] price?
I'm sorry, your line broke up, just trying -- towards the end. could you please repeat?
Okay. The growth we have seen this quarter, right, on a year-on-year basis, if you have to split the growth between volume growth, pricing growth and the growth due to the lower soft -- softer raw materials and the fuel prices, what will be the rough split?
So it's difficult to give you the split in that way because lower raw material prices helps margin, whereas volume and higher realization helps revenue and margin. So and it's -- unfortunately, it's not a number that I have handy. However, our ENA prices year-on-year have grown by about 8%. However, our raw material prices have come down by about 25% in the same period. We have also seen about a 25% increase in overall volumes.
The next question is from the line of Sai Narayanan, an individual investor.
So first of all, congratulations for the good set of numbers. So I got 2 questions. So the first question is, during the last call, we were discussing on the hourglass structural change where people are migrating towards either the IMIL liquor or they are moving towards the premium liquor. So how is this -- how is the trend actually evolving? So it's a hypothetical question, so how do you -- from a strategic point of view, how do you see the trend evolving? Because I remember, 1 year back or something, you are discussing the primary vision is to move towards the consumer brands. So how do you see the trend evolving?
So the hourglass market, hourglass-shaped market is something that we are seeing in all of our states where the low-priced IMFL, which is right in the middle between IMIL and premium IMFL. The low-priced IMFL volumes are really shrinking. And they're shrinking because the value proposition, the quality of products at the bottom segment or the IMIL segment has really become very attractive for the consumer. And the consumer is also shifting up towards premium products. Globus Spirits's model to play in both these categories, the premium IMFL category through Unibev and of course, Globus's own slew of IMIL brands in the cheaper categories. We are well poised to take advantage of this trend in the market. And it's -- we remain focused on this for further growth in the years to come.
Okay. So the next thing is the capital expenditure. So typically, the capital expenditure typically will be around INR 15 crores to INR 20 crores for the company, for the assets, whatever we have invested. So would there be any change in the capital expenditure as you have invested in the power plant sometime back?
Yes. So the maintenance CapEx of the company remains in that range. However, we are now -- the Board of Directors has approved project for expansion in West Bengal, and that will add to some CapEx in the next 2 to 3 quarters. That project is to the tune of about INR 95 crores, and it will add 156 kl per day of capacity. So it's a project cost of around 65 lakhs per kl, which is really nearly 40% lower than others in the market.
So what will be the annual maintenance CapEx incurred for this plant?
Our total maintenance CapEx will remain around INR 15 crores.
[Operator Instructions] The next question is from the line of Ashok Agarwal, an individual investor.
I have a couple of questions. One of them, recently, there was an announcement that the ethanol prices are likely to be increased by 3% as per the government notification effective December. So would it be beneficial to the company?
Yes, certainly. And it is now something that has happened. Prices for grain-based ethanol have increased by about INR 1.5, that's nearly 3% starting 1st December and that will go straight to bottom line for the company.
Okay. That's good. Another question in the last conference call, there was a mention that in Rajasthan, we have launched a high alcohol grade IMIL, we call it ABV 42.8%. And that was -- this was a tremendous success in the last quarter. So how is that segment performing now?
It continues to perform very...
Yes, please go ahead.
It continues to perform very well. We -- it is the business that is going to be the future of our Rajasthan growth. The -- we have a market share of 38% to 40% in that segment. And with that segment of the industry, gaining volumes, it's really going to be sort of fueling the growth of our business in Rajasthan.
Okay. And I would also like to know that what is the outlook of the Delhi markets where I think we have recently made entry there?
Yes. So the Delhi market is a completely different market as compared to our others. It is a fixed volume market. It's almost like a tendered market where the state of Delhi comes out with the tender. And for the last year, we did not participate because of expected realization being very low. This year, the expected -- the realizations are good, so we have reentered the market. So if this is -- the Delhi market is more an opportunistic market, frankly. When the realizations are good, we participate. And when they are not good, then we will not participate. But really -- and also the size of the business is small. We do about 50,000 cases a month over there. So it doesn't really move the needle for us. Rajasthan and Haryana, currently are our focus markets for IMIL.
Okay. And one more question if time permits. In Rajasthan, the last time we talked, I think, there was about 35% market share in the last quarter. So what is this market share in Rajasthan?
So 35% was for medium liquor, sir, which is now close to 40%. For the country liquor or the traditional country liquor segment, the lowest trend country liquor segment, our market share is flat at about 27%, 28%.
Okay. So cumulatively, you can consider that, that is around 35%?
I'll have to get out the weighted averages. I don't have that ready. But I mean, I've explained to you the 2 market shares in the 2 different segments.
The next question is from the line of Navneet Bhaiya, an individual investor.
Congratulations for a wonderful set of numbers, not just over the last quarter, but I think over the last 8 to 10 quarters. I have 2 questions. One is on Unibev. So we've been operating Unibev for about 3-odd years now. So how do you see this company or this IMFL story of ours progressing over the next 3 years? And what is our capital deployment plan over here? Do we see ourselves making profits in the next 3 years? We are, I think, doing about 50-odd lakhs, 50 lakhs, 60 lakhs monthly run rate of revenues over there. So I wanted your view on how you're seeing it now over the next 2 or 3 years?
So I can speak about the strategic direction of Unibev, then I request Mr. Rekhi to talk about the run rate of revenues. Unibev is a very important part of Globus's consumer foray or other consumer business. It is a foray into premium IMSL, so the top part of that hourglass that I speak about. Over here, we find that about 20% of the volumes of the industry account for over 60% of the profits of the industry, and we would very much like to take a share of that profit pie. Unibev was -- got into the market 2 years ago. And we now have a presence in 10 states. Going forward, it is now about using these 10 states to grow this business profitably. And the current COVID situation has put a dent to volumes at the premium IMFL segment as reported by all other companies as well, and that has impacted the growth of Unibev despite the company actually registering a growth year-on-year. Mr. Rekhi, could you please talk a little bit about run rate?
I beg your pardon. If I can talk about run rate?
Revenue run rate, please.
For the quarter ending September, our -- excluding excise, our turnover was 3.1 crore or 316 lakhs. So that was a specific revenue for Q2, notwithstanding that for 2.5 months, we were not in a position to make any dispatches. And therefore, it is slightly lower than the H1 of last year. And just to add on to what Shekhar has said, and I'm conjoining what Globus's presence is in the MI -- the medium segment in Rajasthan and in other states. There, there is the relationship between greater volume at a sort of a reasonably good margin. And as you climb the pyramid in premium products, the volume shrink, but the contribution per case, like Shekhar has alluded to, is disproportionate as compared to the middle pricing, which is known in the industry parlance as a regular IMFL. So the pressure on regular IMFL in terms of margin and retention is much more than it is on the premium products. And like Shekhar has said, because of COVID, we have had to cautiously and gingerly move forward. The market looks good going forward. Our product portfolio is getting increasing acceptance. That is why Oakton and L'Affaire brandy and Governor's Reserve are in the growth mode in double digits, notwithstanding the dampener in terms of overall premium products being taken off the shelves. So I mean, without repeating myself, prospects are very good for premium products category. And this is a value add to the entire sort of margin line going forward for Globus because the margins on premium products are always robust. And it is not a volume game, it is basically a margin game, and we are being selective in going to the states, which give you maximum gross contributions.
Okay. So Shekhar, if you could probably just add as to how much capital outlay would you plan in Unibev? We were down about INR 40 crores as per your notes to accounts till March '20 over the next 3 years, if you can give a broad idea?
So there is an organizational sort of restructuring that is underway. Unibev is being merged with Globus, and that is going to throw out synergies in operation as well as savings in terms of tax. So a, that; and b, we are currently sort of preparing our 3-year business plans for Unibev as well as for Globus's consumer business, and we will be cautiously investing in Unibev's brands as well as Globus's IMIL brands and also taking use of some opportunities on the -- on bulk alcohol and ethanol side. So currently, I'm not in a position to give you a number on how much we will be investing here. But we've been last 3 years managing at about INR 10 crores per year of capital allocation here to reach this level of revenue. So once our plans are firmed up for the next 3 years, we might be in a better position to give you a longer-term capital outlay for Unibev.
Okay. I understand. And just alluding to one of your previous answers, the INR 95 crores CapEx that you're doing in West Bengal, when is that likely to be ready? And what is the revenue of 65 kl that you mentioned? What revenue would that be approximately?
It's 156 kl, which will give us about 5 crore liters of alcohol in a year. And our current selling prices are invested on or about INR 54, INR 55, so that's the math on revenue. We are -- the West Bengal unit is giving us higher margins on bulk as compared to our other plants, and we expect those higher margins to continue there. We expect that plant to be completed in Q2 of the next financial year. .
Okay. And lastly, on your GST dispute, any further update? And if this were to be taken adversely, would you be able to pass this on to the customers in terms of the price hike? How would it work?
Yes. So there are 2 parts to this. One is the historical amount of GST and the other is ongoing. So from an ongoing part, the amount has already been passed through. The GST rate that just comes under is 5%. So it's not a problem in passing of -- passing this on. But retrospectively, there is a voluntary deposit that the company has made. Currently, there is no claim or notice served to the company or to anyone in the industry. So further legal action is awaited as per advice you've got until such time that there is a notice that is served to any company in the industry actually. .
So okay, just a clarification. Last quarter, I think this amount was INR 9 crores, now it's INR 18 crores. So this incremental INR 9 crores [indiscernible] only for this quarter or...
No, INR 18 crores is our total liability for the past few years. from 1st of July 2017, when the GST Act came in till, I think, sometime in Q1 of this year. That is the total liability for that period.
The next question is from the line of Deepak Lalwani from Unifi Capital.
My question was on the growth rate of country liquor. As you're seeing that the trend of down-trading is happening from economy IMFL to country liquor, is this trend in growth rates are sustainable for us going forward?
Yes. So we have seen this trend play out in all of our states. Of course, there will be a point at which down-trading and up-trading kind of rest and markets continue to operate in a new fashion. But currently, we are not seeing that there is growth in all of our states at the low end as well as -- well, besides this COVID period where there was no growth in the top end and a lot of growth at the bottom end, we believe that over the long period of time, the top end of the sort of hourglass will continue to see growth.
Okay. Got it. And sir, my second question was on the ethanol price hike. Is it -- how is it easy for us to pass on this price hike to our end consumers?
So we have 3 types of customers. Number one, alcohol beverage companies. They buy extra-neutral alcohol from us every month. And there is a new price contract every month. So there, there is a 30-day delay in any of the pricing changes. Second type of customer is the OMC, which is a fixed price contract every year. So 1st of December is when the new contract comes into effect for 12 months. Third type of customer is our consumer business really. And as you're aware, in alcohol, for 1 year, your finished product price is more or less fixed. And as a result, for that year, you're not able to pass on any increases. So really, because of our alcohol sales to beverage -- other beverage companies, we get a perfect hedge on any increases on realization that are possible on extra-neutral alcohol.
Okay. So sir, cumulatively, what would be the number of months or number of quarters that we take this where we have this lag to increase the price hike?
For the beverage players? For other...
For all the segments cumulatively, what would be the number of months we take that lag to increase the price hike?
Well, honestly, I've never done that. I've never looked at it from that point of view because each of -- these are different businesses for us in a sense. So -- but I guess you could compute it, base is our share of consumer business and bulk business, which is about 60% bulk and 40% consumer.
Got it. Got it. Sir, lastly, on the product quality, what is that Unibev is doing differently compared to, say, USL or Pernod?
I think our product quality is really where Unibev shines, outshines competition and I request Mr. Rekhi to talk a little bit about that. Mr. Rekhi, are you there?
Yes. Sorry, I was on mute. So can the gentleman repeat his question because I couldn't get the comparison of our quality with what?
So the question really is about how does product quality compare with competing brands?
So I think that's a one-line answer. No competing brand is able to make a claim that it is blended with up to a certain age of scotch. So that's a great USP, unique selling point, and also it's a good recall in the minds of the consumers, people who are aware that the quality of Indian IMFL, which is generally blended with scotch. But there are Indian -- other Indian manufacturers are not able to state that they have blended it with a certain age of scotch, which actually adds a lot of palate experience and smoothens the entire product. And therefore, based on the USP and the feedback and the claim which we can confidently make that our products are blended with 12-year-old, 18-year-old and 21-year-old scotch, which no other competition can make, first of all, it gives us a leg up. And number two, the proof of the pudding is in the eating, we are growing premium brands in double-digit growth, and we have not received any negative feedback at all, which only talks about quality feedback, both in terms of what is inside the bottle and the entire overall presentation as compared to the competition.
The next question is from the line of Ankit Merchant from Reliance Securities.
Sir, my first question is that our receivables has been increased from around 33 crores in March '20 to around 100 crores in September '20. And because of that, sir, our operating cash flow has only increased from INR 30 crores -- INR 34 crores to INR 44 crores. And at the same time, our EBITDA is increased from around INR 30 -- around INR 30 crores to around INR 60 crores. So can you throw some light on that?
Yes. So it's really a simple way to look at that. Our entire -- the new category in Rajasthan that I speak about, that entire category has a higher excise duty as compared to country liquor. So if you look at our P&L account and you see the increase of excise duty in our P&L account, it's exactly the same as the increase in receivables. So it's essentially a higher amount of excise duty that we are having to keep as deposited with the government.
Okay. Sure, sir. And my second question is that, sir, our volume growth has been in the double digit. So is it partly due to a pent-up need? And what kind of volume growth that you expect going forward?
Yes, perhaps there is some pent up, but I would be very surprised if it's more than a couple of percent. And really, whatever pent-up demand was there, was there in July and August and September is very -- has been very normalized. The real reason for growth is the medium liquor category in Rajasthan or the higher strength IMIL category in Rajasthan, which is taking market share from the IMSL market, number one. Number two, it is a dramatic drop in illicit alcohol in Haryana and therefore, a huge increase in the organized market. Our sales in Haryana are up over 125% year-on-year.
Yes. Sure, sir. And sir, I don't think that our 20% EBITDA margin is going forward would be a sustainable one? What kind of EBITDA margin that you may explain?
So in the last couple of calls, I have maintained that we are in the process of margin expansion. Largely, in our bulk business, the margin expansion is happening due to the structural change in the alcohol business with a lot of surplus alcohol capacity going into ethanol. And therefore, giving us a lot of pricing control on ENA in our states. And on the other side, margin expansion is happening because of growth in volumes of consumer. So as consumer business continues to grow, there will be further increase in EBITDA margins. And as -- and the bulk business there will be a point where margins sort of stabilize. We have, again, been expanding margins. So at the point where bulk margins stabilize from there onwards, on that side, there will be no further margin growth and margin growth will only come from consumer business. But currently, we haven't sort of really maxed that out and maybe towards the end of the year, we'll probably look at matching that out.
The next question is from the line of Kishor Shah from Amara Capital.
My question is who are suppliers of plant and machinery for your 156 KLPD distillery in West Bengal? And second, what are your plans to participate? And how much quantity you want to participate in oil marketing company tender in the next season?
Right. So plant and machinery suppliers, we've got variety. And this is really our core strength. As I mentioned earlier, our CapEx in this facility is over 40% less than what others are spending on setting up capacity, similar-sized capacities. And we do it slightly differently, and we've done it for several years now, and that's really our core strength. So not able to get into details of who are our plant industry suppliers at this stage. But suffice it to say, that's really our core strength. And we will choose plant and machinery suppliers that can give us capacity and reliable capacity. As regards to share of ethanol, I think last year, our supplies are happening only from Bihar and Haryana. Towards the end of the last supply year, which actually ends in November -- 30th November, entire Bihar capacity was allocated to ethanol and 50% of Haryana. Going forward, we feel that similar quantities will continue. However, we will take a decision quarterly basis on basis of where we are getting higher margins even in these facilities as compared to ENA or ethanol. But the right way to look at our bulk business is an average realization on our entire spirit capacity, which is currently at about INR 53 to INR 54 for the last quarter. And we believe this will go up a little bit with the new pricing of ethanol and then sustain at that level for the entire company.
The next question is from the line of Vivek Shah, an individual investor.
Sir, you mentioned about the overall revenue potential for West Bengal project, which I missed, can you just...
We will produce about 5 crore liters in project. And our current sales realization on ENA is about INR 53, INR 54 from West Bengal. And then you can add another about INR 7 a liter from our byproducts, so say, about INR 60 a liter.
Okay. And the 5 crore liters on a yearly basis?
Correct.
[Operator Instructions] The next question is from the line of Sai Narayanan, an individual investor.
You were telling about the cost of setting up a distillery, which is substantially less than the competing -- competitors. So hypothetically, take, for example, if I have to set up a 1 crore bulk liter of grain alcohol, how much, tentatively, it will cost according to the market currently?
So the same capacity as we're setting up in West Bengal will cost our competitors about INR 130 crores to INR 140 crores, whereas it's costing us about INR 95 crores.
So for 5 crores of grain alcohol, it costs INR 130 crores to INR 140 crores, that's what you're saying, right?
Yes.
Okay. So the next thing is, Shekhar, and you assumed office in 2013, one of the objectives is to -- you initiated a lot of trends actually in ensuring that the share of the consumer business grows up. So you are involved in packaging the brands attractively and you involved Unibev and all these things. Now if you see actually the objective still hold and a lot of recent changes have come, like the structural changes is happening. And also in Haryana market, as you rightly pointed out, government is taking up on the illicit liquor. So in this thing, so 2 or 3 years down the line, so how do you see the trend? So what are the major challenges you face? In fact, you introduced a new set of brand, the middle ABV brand, which is 42% IMIF liquor, that is doing very good. So how do you see the trend actually because we cannot rely only on the structural changes in the bulk business, right? So how do you see the consumer share of...
So our consumer business has to remain the focus for long-term growth in the company, whether it is at the bottom of the hourglass or at the top, we are going to grow our consumer business in our states where we have facilities as well as in states where we don't have facilities. In those states, we look at -- we only look at the higher price point markets. And in the states, we have distributors, we have access to the entire market. Whereas over the last few years, share of revenue of consumer has not grown because our bulk business share has grown at a much faster rate. But if you see the overall revenue of the consumer business over the last 5 years, it has grown tremendously. And we believe that the level of growth we have seen in the last, say, 24 months in the consumer business, that's the kind of growth we should be able to get going forward as well.
But if you see the last 5 years, I think the share of the revenue from Rajasthan IMIL market has grown considerably whereas from Haryana it has come down. Going forward, do we expect the revenue from Haryana...
Yes, so you already pointed that out earlier when your question was asked that Haryana has tracked down on illicit liquor and that is growing volume. So Haryana is going to -- has already grown year-on-year as I mentioned, over 125%.
Right. So -- and because the dividend policy have the -- because last year, you have announced a dividend of INR 1 per share. So can we assume that the dividend -- we have come up with the dividend policy where you are going to continue with the dividend in the coming years also?
Yes, we will attempt to continue the dividend. I'm unable to comment on quantum of dividend going forward, but we will aim to continue paying dividends.
And what is the total capacity right now? It is 15 crores yearly, I think. And now 5 crores you are adding, so by quarter 2 of next year, it's going to be 20 crores of alcohol?
Yes.
[Operator Instructions] As there are no further questions I now hand the conference over to Mr. Shekhar Swarup from Globus Spirits for closing comments.
Thank you, everyone, for joining us. Please feel free to reach out to our Investor Relations team or to us directly in case you have any questions in the future. Wishing you all the best and until next time. Thank you.
Thank you.