Key highlights of the call

• The mgmt said that spirit industry has seen single digit growth in FY15 due to restricted environment and tough economic conditions.

• The company is facing challenging environment in Harayana, due to large number of players, who started discounting their products to increase the market share. However, the market is now stabilizing and mgmt expects to see recovery in Harayana market.

• The net sales for Q4 FY15 inclined by 26% to Rs 152.7 crore driven by strong growth in all business verticals in existing markets and launch of Bihar IMIL EBIDTA grew by 94% to Rs 15.1 crore with EBIDTA margin 9.9%. EBITDA expanded primarily due to decrease in raw material cost. The net profit stood at Rs 3.6 crore against loss of Rs 6.2 crore in the corresponding quarter of last year.

• For Q4, 2.5 mn IMIL cases sold, a growth of 12%, driven by 24% increase in Rajasthan IMIL revenues and entry into Bihar IMIL in Jan. 2015. Bihar with 2.8 lakh cases already accounts for 11% of IMIL volumes in Q4 FY15.

• For Q4, IMFL revenues increase by 88% with aggregate sales of 129000 cases.

• The standalone net sales for FY15 inclined by 18% to Rs 585.7 crore driven by strong traction across all business verticals in existing markets and launch of Bihar IMIL and DDGS . EBIDTA grew by 8% to Rs 48.7 crore with EBIDTA margin 8.3%. The net profit stood at Rs 7.1 crore, grew by 65%.

• For FY15, consumer revenues up 13% to reach Rs 259.8 crore as IMIL volumes increase 9% to reach 8.6 mn cases with robust performance in Rajasthan and launch in Bihar..

• In Rajasthan, 5.6 mn cases in sold in FY15, up 20%. It is No. 1 private player in Rajasthan IMIL with 25% market share.

• In Haryana, 2.3 mn cases in sold in FY15. It is No. 2 private player in Haryana with 10% market share.

• Avg, realization in IMIL in 4 states is around Rs 295 per case. For Rajasthan it is around Rs 305-310 per case and Haryana it is Rs 280-285 per case.

• Manufacturing revenues up 22% at Rs 325.8 crore driven by 38% growth in aggregate franchisee volumes and 10% in bulk alcohol.

• Share of consumer and manufacturing in revenues at 44% and 56% respectively in FY15, compared with 46% and 54% in FY14

• DDGS, a new by-product launched in Q2 FY15, showing strong market potential. DDGS production capacity at 110 tpd across Behror and Samalkha.

• The company has exclusive marketing rights in Patna municipality as per 5-year tender, the biggest district market in Bihar, which as per company has potential of 2.5 mn cases p.a.

• The aggregate bottling volumes was up by 38% to 3.3 mn in FY15. Scaled up bottling contracts with both ABD and United Spirits in Rajasthan and Haryana respectively, resulting in volume growth

• Bihar and WB distillery expected to be operational during FY16-17. The combined capacity will be 60 mn BL, which will take capacity from current 90 mn BL to 150 mn BL.

• The capacity utilization was up from 76% in FY14 to 78% in FY15 resulting in 3% YoY increase in production to 69 mn BL

• Bulk alcohol revenues up by 10% driven by healthy export volumes

• The mgmt is hopeful of maintaining 10% EBIDTA margin in FY16. The mgmt said that gng fwd, as IMIL and IMFL business grows, margin will grow.

• The mgmt expects industry alcohol to record flat volume for FY16. Franchisee and bottling segment is expected to grow by 10-15% in volume in FY16. Rajasthan market is expected to grow by 10%.

• The company's debt is around Rs 129.2 crore and cash and cash equivalent of Rs 6.2 crore.

• Tax rate for FY16 will be around 20%.