Net revenue from operations was at Rs 953.92 crore during the quarter, registering a growth of 25.9% from Rs 757.43 crore reported in Q1 FY23.

Total Indian Made Foreign Liquor (IMFL) volume increased 7.9% whereas Prestige & Above category volume grew 27.2%. Prestige & Above net revenue growth was 40.3% compared to Q1 FY23. Non-IMFL revenue growth was due to incremental country liquor volumes from our Sitapur bottling unit coupled with the country liquor price increases received with effect from 1 April 2023.

Profit before tax grew by 8.9% year on year to Rs 84.03 crore in the quarter ended 30 June 2023.

EBITDA for the quarter stood at Rs 118.9 crore, up 29.1% as against Rs 92.1 crore posted in Q1 FY23. EBITDA margin improved to 12.5% in Q1 FY24 as compared to 12.2% reported in the same period last year.

Gross margin during the quarter was 43.6% compared to 40.6% in Q4 FY23 and flat YoY. On QoQ basis, the firm's gross margin improved significantly due to the price increases received in the country liquor business coupled with price increases and ongoing premiumization in the IMFL business. On YoY basis, despite significant commodity inflation across ENA and glass bottles (accounting for over 65% of company's cost of production) it has been able to sustain gross margins.

Radico Khaitan said 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 Q1 FY2024, A&SP as % of IMFL sales was 5.9% versus 5% in FY23. On a quarterly basis, the amount may vary but the firm expects to maintain A&SP spend around 6% to 8% of its IMFL revenues to be able to drive the sales momentum.

The company has incurred Rs 776.7 crore on the Rampur Dual Feed and Sitapur Green Field projects since inception.

Dr. Lalit Khaitan, chairman & managing director said, “Although, we have faced raw material pressure in the short term but the mid to long-term growth and margin trajectory remains intact. Going forward, we will continue to invest in strengthening our brand portfolio and deliver value to our discerning consumers. Radico Khaitan is very well placed to benefit from the strong premiumization trend of the Indian spirits industry. Our Sitapur greenfield distillery project is progressing well and is in the last stage of implementation. We expect to start commercial production during Q2 FY2024. ”

Abhishek Khaitan, Managing Director stated, “we have delivered another quarter of a strong double-digit Prestige & Above volumes growth which has exceeded our earlier guided growth rate of 15-18%. Overall, we have recorded significant improvement in sequential margins, which have been sustained on year‐on‐year basis. This was aided by strong efforts on driving premium value growth, price increase received over the last four quarters supported by easing inflation in certain raw materials. We continue to monitor the business environment cautiously and remain committed to driving growth and profitability while navigating market challenges and capitalizing on the industry opportunities for the remainder of the financial year.”

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.

Shares of Radico Khaitan were down 0.18% to Rs 1,444.50 crore on the BSE.