Key highlights of the call

• The net sales for the quarter stood at Rs 77.09 crore while net profit stood at Rs 11.58 crore. For FY10, net sales increased by 34% to Rs 265 crore while net profit has increased by 124% to Rs 28.92 crore. The growth was on the back of strong volume growth and price hike of around 6% to 7%.

• Out of total revenue, the contribution from country liquor is 42%, Industrial alcohol is 13%, own IMFL brand is 7% and franchisee IMFL is 32%.

• For Q4, 17 lakh cases of country liquor, 1.84 lakh cases of franchisee IMFL and 0.65 lakh of own IMFL brand sold.

• During FY10, 67 lakh cases of country liquor, 8 lakh cases of franchisee IMFL and 2.6 lakh of own IMFL brand sold.

• The average price of IMFL range from Rs 1200 to Rs 1800 per case, country liquor without duty is Rs 250 per case and bulk spirit is Rs 35 to 40 per litre.

• The margin for Industrial alcohol is 10% and country liquor is 15%.

• The country liquor in the northern regions has shown a growth of over 20% on the back of strong rural demand. The total country liquor market for Haryana is 25 million cases, for Rajasthan is 12 million cases and Delhi is 6 million cases per annum.

• The own branded IMFL product will be launch in Q2 and Q3 of FY11. The first launch is planned in the regular category which is a whisky coupled with a second launch in the semi premium category which is a brandy.

• The ASP budget for FY11 is around Rs 10 crore.

• The agreement for bottling and manufacturing 0.8 million cases for IMF brands with Allied Blenders & Distillers expired in March 2010 and has been renewed for another three years for 1.2 million cases per annum. The company has also tie up with Jagatjit Industries (Aristocrat Whisky) to manufacture and bottle 1.8 million cases of their IMFL brands in the state of Haryana, which became operational in April 2010.

• There is further expansion in capacity to 70 million bulk litres (BL) at a minimal incremental cost of Rs 8 crore from the planned capacity expansion of 48.6 million BL p.a., which is expected to get completed by Q2.

• The capex plan for the whole year is Rs 90 crore.

• The company is looking for supplying to Canteen Store Department (CSD) in FY11 by purchasing cluster of brands that are supplying to it. At present it doesn't have any supply for CSD, but expect to supply soon its registered brand, which got approved.

• The present capacity utilization is 100%.

• The total debt as on March 31^st 2010 was Rs 13.71 crore and cash was Rs 17 crore.

• For FY11, the management expects top line to grow by 30% to 35% and contribution expected from country liquor to be 35%, Industrial alcohol to be 32%, own IMFL brand to be 10% and franchisee IMFL to be 22%. Country liquor volume is expected to rise by 10% to 15% for FY11. A strong volume growth coupled with price hikes in the states in which the company is operating, is expected to further boost profitability.

• The management see no impact on margin in coming year, as grain prices has softened compared to last year and cost of bottle has also remained stagnant.