During the quarter, total Indian-made foreign liquor (IMFL) volume growth was 7.8% led by Prestige & Above category which increased by 15.4%. Excluding Andhra Pradesh, total IMFL volume growth was strong double digit. Total IMFL revenue growth was 15.8%. IMFL sales value accounted for 79.7% of the revenue from operations (net).

Gross margin contracted by 143 basis points from 49.8% in Q4 FY20 to 48.4% in Q4 FY21. On full year basis, gross margin expanded from 48.6% to 50.3%.

During Q4 FY21, Advertising & Sales Promotion (A&SP) expenses increased by 52.1% to Rs 45.77 crore. As a percentage of IMFL sales, A&SP expenses were 8.3% in Q4 FY21 and 7.3% for the full year FY2021. The company continues to invest behind brand building to support strategic growth and market share expansion initiatives.

Finance cost decreased by 45.3% y-o-y to Rs 4.62 crore. The company's cost of borrowing is one of the lowest in the industry due to a lower interest environment, stable profitability, strong capital structure and improved liquidity position.

As of 31 March 2021, net debt was Rs 197.54 crore versus Rs 382.04 crore as of 31 March 2020.

The company posted an 18.9% jump in net profit to Rs 270.56 crore on 0.4% decline in net sales to Rs 2,418.14 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).

Commenting on the results and performance, Abhishek Khaitan, MD of the company said, “Our performance in FY2021 is a testament to Radico Khaitan's resilient business model, strong premium product portfolio and excellent execution capabilities of the management team. Despite the lock down during the month of April 2020, we have registered a stable top line during the year and were able to expand our profitability margins. We reported EBITDA of Rs. 408 Crore for FY2021 which represents a 11% growth over last year. Our Prestige & Above category brands continued their robust performance. We are proud to report that 8PM Premium Black whisky registered sales volume of over a million case during the year despite the challenges in Q1 FY2021. Radico Khaitan is on course of its plan for the launch of more brands in the premium brown spirits space during FY2022. Our relentless focus on product quality and consumer satisfaction has won us one Grand Gold and 12 Gold awards at the Monde Selection 2021. Management team's ongoing focus on free cash flow generation has enabled us to reduce our net debt by another Rs. 184 Crore during the year. We are confident that this is a temporary phase of uncertainty but as soon as this is over, we shall see a strong recovery in our sale volumes. With our focus on operational efficiencies and strategic investments behind our brands, we are very well positioned for another successful year ahead.”

The board of directors has recommended a dividend of Rs 2.40 per equity share for the financial year ended 31 March 2021.

Radico Khaitan is one of the oldest and the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India.

Shares of Radico Khaitan were up 0.79% at Rs 615.50 on BSE.