Key highlights of the call

• The consolidated net sales inclined by 30% to Rs 134 crore and net profit inclined by 36% to Rs 8.53 crore for Q1 FY12.

• ADL's revenue was up by 26% to Rs 24.47 crore while net profit was up by 89% to Rs 3.04 crore.

• The branded IMFL business had a volumes of 1.71 lakh cases up by 101%. It contributed Rs 14.47 crore of the total revenue translating in a revenue share of 9%. Further through tie up units the revenue was Rs 3.53 crore. The company's branded IMFL business is witnessing good traction on the back of growing acceptance of its flagship brand ‘County Club'.

• Country Liquor (CL) clocked volumes of 26.71 lakh cases, up by 24%, thus contributed Rs 73.64 crore of the total revenue translating into a revenue share of 46.9%. The segment has shown resurgence in growth on account of strong rural demand and a healthy monsoon. CL demand in Northern India is expected to remain robust compared to the rest of country where demand has been fairly stagnant. The new brands introduced in the state of Haryana have been well received.

• Franchisee IMFL clocked volumes of 2.2 lakh cases contributing Rs 36.36 crore to the total revenue translating into a revenue share of 23%. Apart from above, Franchise IMFL on bottling job work basis was 1.32 lakh cases making total franchisee volume of 3.52 lakh cases.

• Bulk alcohol clocked volumes of 41.56 lakh BL and contributed Rs 14.54 crore to the total revenue translating into a revenue share of 9%. Input cost for bulk alcohol is Rs 30 – 31 per liter and selling at Rs 35 - 36 per liter. The capacity stabilization has taken more time which has affected the volume in bulk alcohol segment in Q1. Going forward the bulk alcohol segment is expected to witness a ramp up in volume.

• The company is looking at expanding its presence from present 9 states to 14 to 15 states.

• The company has taken on average 5% - 7% price hike in UP and Rajasthan states. Also Delhi has seen price hike of 10% recently.

• The management said that going forward it will increase it's A&P spend, reach newer market and make presence in new niche segment for its IMFL segment. It wants to enter into high price premium branded IMFL segment. The company is also looking to bring foreign products which it can bottle here and looking at foreign tie up for entering vodka segment.

• The management expects capacity expansion to substantially drive the volumes in FY12.