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G M Breweries soars ~4% after putting up brave front to tackle Covid-19 crisis

The company had suspended manufacturing activity and in turn sales of country liquor from March 23, 2020 due to lockdown.

May 29, 2020 3:32 IST | India Infoline News Service
G M Breweries Limited informed the exchanges Friday that the company is not having any debts. The company has enough liquidity to procure the raw materials and packing materials which will ensure smooth production and sale of country liquor once the company starts to function at a normal level.

The company had suspended manufacturing activity and in turn sales of country liquor from March 23, 2020, due to lockdown imposed by the government of Maharashtra and subsequently by the Government of India to prevent the spread of Covid-19.

The company later partially started manufacturing and sale of country liquor from May 20, 2020. However, the registered office of the company situated at Prabhadevi, Mumbai has not been permitted to be opened by the authorities and arrangements have been made for the executives who work from home and factory as per the requirement.

The company had zero cash flow from sale activity during almost seven weeks starting from March 23, 2020 till May 20, 2020 but the investments made by company yielded returns and the same was sufficient to keep company work smoothly and fulfil its obligations.

“The company has started its manufacturing at its Virar factory and sale activity in areas permitted by the Govt. authorities from May 20, 2020. The company has started manufacturing country liquor with its in house labours and it proposes to scale up operations over a period of time based on the availability of contract labourers.”

G M Breweries Ltd is traded at Rs401.85, up by Rs15 or 3.88% from its previous closing of Rs386.85 on the BSE.

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