Net revenue from operations was at Rs 831.84 crore during the quarter, up 2.4% from Rs 812.52 crore reported in the corresponding quarter previous year.

Total Indian Made Foreign Liquor (IMFL) volume declined 0.7% whereas Prestige & Above category volume grew 17.4%. But for the rationalization of volumes of certain brands, total IMFL volume growth would have been higher. Prestige & Above net revenue growth was 18.2% compared to Q4 FY22. IMFL sales value accounted for 79.2% (versus 81.7% in Q4 FY22) of the net revenue from operations.

Profit before tax declined 18.4% year on year to Rs 51.37 crore in the quarter ended 31 March 2023.

EBITDA in Q4 FY23 stood at Rs 80.1 crore, down 1.3% as against Rs 81.2 crore posted in Q4 FY22. EBITDA margin reduced to 9.6% in Q4 FY23 as compared to 10% reported in the same period last year.

Gross margin during the quarter was 40.6% compared to 42.7% in Q4 FY22. On YoY basis, continued commodity inflation resulted in gross margins compression, particularly in the non-IMFL business where we have recently received price increases. Given a favorable product mix change, impact of cost push on the gross margin of the IMFL business was mitigated to a large extent.

Although on a sequential basis we have experienced stabilizing trend in certain commodities, overall commodity scenario still remains volatile, said the company.

Radico Khaitan said that its strategy is to continue to make prudent marketing investments over existing core brands and new launches to sustain the growth and market share. During FY23, A&SP as % of IMFL sales was 5% as compared to 5.4% in FY22. On a quarterly basis, the amount may vary but the firm expects to maintain A&SP spend around 6% to 8% of its IMFL revenues to be able to drive the sales momentum.

The company's net debt stood at Rs 611 crore, an increase of Rs 495 crore after capex on new projects of Rs 608.9 crore since March 2022.

The firm has incurred Rs 677.6 crore on the Rampur Dual Feed and Sitapur Green Field projects since inception.

On full year basis, the company's consolidated net profit declined 18.9% to Rs 204.42 crore despite of 9.6% to Rs 3,142.82 crore in FY23 over FY22.

Dr. Lalit Khaitan, chairman & managing director said, “Despite an overall challenging operating environment, we have delivered a broad based, premium volume growth across the portfolio and across geographies. Our capex projects are progressing well within the estimated timelines. We are confident that we have the right strategies to deliver a balanced growth and value creation in the medium to long term.

Our performance in a tough inflationary environment clearly demonstrates the strength and consistency of our strategic initiatives, which helped us capitalize on our brand equity while continuing to innovate and deepen consumer connect. We remain committed to delivering a robust volume growth while continuing to invest behind our brands, expanding our domestic and international ontrade footprint, and focusing on a resilient and future ready supply chain. Long term industry dynamics remain attractive, and going forward we believe that the Company is well-positioned to capitalize on the growth opportunities in the Indian IMFL industry.”

Abhishek Khaitan, managing director said, “Our Prestige & Above category volumes during Q4 FY2023 remain robust and we registered 17% YoY growth on a very high base. This was led by all our core brands such as Magic Moments Vodka which crossed 5 million cases sales, Morpheus Premium Brandy and 1965 Spirit of Victory Premium Rum both of which crossed a million case mark. To capitalize upon the traction of 8PM Premium Black Whisky, during Q1 FY2024, we have renovated the brand into a more contemporary packaging to enhance upon its brand equity.

We remain committed to our long-term strategies of a premium product portfolio focused on innovation. These strategies have enabled us in driving and sustaining the strong momentum in our premium brands. Despite the near-term concerns around inflationary pressures, we are confident that we have all the levers in place for FY2024 and expect to build on the current momentum and deliver a broad volume-led growth along with improvement in profitability.”

Meanwhile, the company's board has recommended a dividend of Rs 3 per equity share for FY23. The dividend, if approved by the shareholders at the ensuing AGM, will be paid within 30 days from declaration at the AGM.

Radico Khaitan is among the oldest and one of the largest manufacturers of Indian-made foreign liquor (IMFL) in India. It is one of the few companies in India to have developed its entire brand portfolio organically. The company has a total owned capacity of 157 million litres and operates 32 bottling units (5 owned and 27 contracted) spread across the country.