Globus Spirits’ second quarter revenues are up over 20 percent and margins too have expanded.

Speaking to CNBC-TV18, Shekhar Swarup, Joint MD of the company said he expected the margins to further increase in Q3.

“We have been in the last three or four quarters in a margin expansion phase. I think the margins that we have demonstrated in Q2 will possibly grow a little into Q3 and thereafter stabilise at that level,” he said.

On revenues, Swarup said that they should be able to maintain the performance going forward.

“Things as far as lockdowns and all are concerned, hopefully there should not be anymore. There is great news about vaccine and that should help consumption grow even further. So, the performance in the last 3-5 months should continue for the rest of the year,” he said.

Swarup added that they have seen significant improvement in ethanol bulk realisations.

“Our profits have grown tremendously in the quarter gone by largely due to a structural change in the ethanol policy. We have seen a huge amount of ethanol delivery that has kept our bulk alcohol prices constant with lower raw material prices and therefore much significant enhancement of realisation has taken place in the bulk side and that has contributed to profits,” he said.

(Edited by : Santosh Nair)