Key highlights of the call

The net sales for Q4 FY14 declined by 5% to Rs 120.75 crore while loss at net level stood at Rs 6.2 crore.

Net sales impacted due to decline in key Haryana market. The net sales for FY14 declined by 1% to Rs 496.09 crore while net profit declined by 87% to Rs 4.28 crore. The net profit declined due to exceptional depreciation charge of Rs 6 crore on account of change from shift basis to continuous process plant for certain plant and machinery. There was accelerated amortization of intangible assets in FY14

Net Revenues from manufacturing up 17% to Rs 266.1 crore in FY14 driven by increase in sales of Rajasthan franchisee bottling and bulk exports.

Net Revenues from Consumer Businesses declines 16% to reach Rs 230.4 crore due to tough market conditions in key market of Haryana and scaling back of unprofitable brands and markets in IMFL

For FY14, Rajasthan bottling business grew by 55% to 1.08 mn cases. Haryana bottling by 8% to 1.32 mn cases with 10% increase in income from bottling fee. The growth was driven by scaled up bottling contracts of USL and ABD in Haryana & Rajasthan.

Bulk alcohol revenues up 18% driven by strong growth in bulk exports (up 15x). Share of exports in bulk revenues increases from 1% in FY13 to 12% in FY14

Rajasthan IMIL sales volume grow 10% to reach 4.6 mn cases. Company is #1 private IMIL player in the state. It is 2nd largest in Haryana IMIL market. Volumes in Haryana decline by 47% to 5.1 mn in a contracting market coupled with higher competition.

Focus on profitability led to decline in IMFL volumes by 69% to 1.08 mn cases.

In FY14. Grain price increased by 18%.

Avg, realization of Industry alcohol is Rs 43 per litre, IMIL is Rs 288 per case, IMFL is Rs 300 per cases and IMFL branded franchisee is Rs 484 per case.

The company wins IMIL tender for Patna District – largest in Bihar. Sales to commence in FY15 via 3rd party bottler. Land acquisition proceeding in Bihar and West Bengal for distillery. The company wins distillery licenses in Bihar, West Bengal and Jharkhand