The company’s profit before tax stood at Rs 83.30 crore in the September 2023 quarter, registering a growth of 19.37% YoY.

Total Indian Made Foreign Liquor (IMFL) volume decreased 3.1% whereas Prestige & Above category volume grew 21.8%. Prestige & Above net revenue growth was 35.6% compared to Q2 FY23. Non-IMFL revenue growth was due to incremental country liquor volumes from our Sitapur bottling plant coupled with the country liquor price increases received with effect from 1 April 2023.

Gross margin during the quarter was 44.1% compared to 41.6% in Q2 FY23. On YoY basis, our gross margin improved significantly due to the price increases and ongoing premiumization in the IMFL business coupled with price increases received in the Country Liquor business.

Although, prices of certain packaging materials have softened recently, the firm stated that it is cautiously monitoring the trends of ENA and glass bottles where volatility persists.

EBITDA grew 34.6% YoY to Rs 120.6 crore during period under review. EBITDA margin improved to 13% in Q2 FY24 as compared to 11.8% recorded in the corresponding quarter previous year.

The company stated that its strategy is to continue to make prudent marketing investments over existing core brands and new launches to sustain the growth and market share. During Q2 FY24, A&SP as 5.3% of IMFL sales compared to 4.0% in Q2 FY23. On a quarterly basis, the amount may vary but we expect to maintain A&SP spend around 6% to 8% of our IMFL revenues to be able to drive the sales momentum.

The company has incurred Rs 834 crore on the Rampur Dual Feed and Sitapur Green Field projects since inception

Net debt stood at Rs 771.4 crore as on September 2023. The increase in net debt of Rs 160.4 crore was after capex on new projects of Rs 156 crore since March 2023.

Dr. Lalit Khaitan, chairman & MD said, “Radico Khaitan continued its robust performance in line with our expectations despite a challenging operating environment. This was led by a broad-based growth across our premium portfolio. Industry volume growth, particularly in the regular category, remained muted during the quarter. We expect demand momentum to improve with the upcoming festive season.

The recent commissioning of the greenfield grain distillery at Sitapur is a significant milestone development in the history of Radico Khaitan and augurs well for our future growth trajectory. With our strong backward integrated platform and dedication to brand excellence, we are confident in our ability to capitalize on the long-term growth prospects within the Indian spirits industry.”

Abhishek Khaitan, MD said, “During Q2 FY24, we delivered a strong growth of 22% in our Prestige & Above category brands. With our Rampur Indian Single Malt portfolio, we have always strived to take India to the World and the recent launch is a testament to our brand creation capabilities and celebrates an ancient Indian artform.

Despite a volatile cost environment, our EBITDA margins have sustained on sequential basis. We are confident that we are making progress in the right direction with our business strategies. We are focused on delivering a value-led growth, managing business with agility, harnessing the strength of our extensive distribution network and manufacturing platform, while consistently improving our profit margins.”

Radico Khaitan is among the oldest and one of the largest manufacturers of Indian-made foreign liquor (IMFL) in India. It is one of the few companies in India to have developed its entire brand portfolio organically