The revenue was impacted by the nationwide lock down. There was no Indian-made foreign liquor (IMFL) sales during April and it resumed only after the first week of May when the lock down was partially lifted. However, from June onwards, the firm saw early signs of recovery. While total IMFL volumes decreased by 43.5% during the quarter, the decline was only 9.8% y-o-y in June 2020. IMFL sales accounted for 73.2% of the net revenue during the quarter as against 80% in Q1 FY20.

Gross margin expanded by 666 bps to 54.6%. This margin expansion was driven by a combination of factors including better price realization due to a favorable state & product mix, increased traction in the exports division and recently received price increase in one key state.

Consolidated EBITDA stood at Rs 75.23 crore in Q1 June 2020, declining 25% from Rs 100.12 crore in Q1 June 2019. EBITDA margin improved to 18.4% in Q1 June 2020 from 16.1% in Q1 June 2019 due to gross margin improvement.

During the quarter, the company also started manufacturing sanitizers to contribute to the nation's fight against COVID-19. Currently, its contribution to the company's financial performance is not material.

Commenting on company's performance, Abhishek Khaitan, managing director said, "During this quarter, we continued to outperform the industry with encouraging operational results which coupled with a strong financial discipline led to robust cash flow generation. Month-on-month volumes indicate an improving trend and we are confident of a normalized performance in the coming quarters. Our profitability improved due to a better state & product mix and higher share of exports business. We recently received price increase in one of the key liquor consuming states in south India. This price increase also had a positive impact on our profitability. Radico Khaitan continues to focus on further strengthening its premium products portfolio through new launches and ongoing marketing investments."

Shares of Radico Khaitan were down 0.2% at Rs 393.95.

Radico Khaitan produces and distributes branded liquor. The company operates molasses and grain distilleries and produces whiskey, rum, brandy, and vodka.