Following are key highlights

• The company's consolidated net sales for Q2 was up by 22% to Rs 175.75 crore. Volume grew by just 2% to 3.14 mn cases, on account of lower sales in Tamil Nadu state. The net profit was up by just 1% to Rs 15.86 crore. Overall revenues enhanced on the back of improved average realizations and on account of efforts to increase penetration of premium brands in new and existing markets.

• The earnings witnessed an impact due to increased cost of raw material as well as packaging. Molasses price was up by 30% on Q-o-Q basis, however, in October it has started easing due to crushing season.

• The sales volume of brandy was down 14% to 1.63 mn cases on account of lower sales in Tamil Nadu while whisky was up by 31% to 0.76 mn cases, rum by 25% to 0.71 mn cases and vodka & gin by 50% to 0.03 mn cases.

• Growth in key markets such as South remains healthy with a positive growth trend in Eastern region. East part of the country has seen a 46% growth. Tamil Nadu volume growth trending towards normalization and by fiscal year-end expects to be normalized, however launch of premium variants has translated into higher realizations from the region

• CSD as a sector remained subdued. Industry slowdown by 6% while company saw de-growth of 5%. However, its market-share was intact.

• The Company has witnessed encouraging growth in its export markets given its efforts to expand its presence internationally too. Presently the company's absolute export numbers are small, but going forward in next 2-3 years it will grow substantially, as it is looking at new geographies.

• White House Rum has been launched in Kerala in March 2012. It has registered an impressive growth trajectory by recording 50000 cases p.m. in September.

• The company remains committed to its plan to accrue benefits from the Mega Project status, with consistent increase in distribution in Maharashtra

• The company has taken price hikes in Odisha by 12.5% in the month of September 2012 and in Kerala by 6% in August 2012, which will further drive realizations in the forthcoming quarters. The company further anticipates price hikes in Andhra Pradesh (company has applied for 20% hike) and Karnataka price hike expected to be in month of Nov – Dec. CSD also saw price hike of 6% - 10%. On an average, the company price hike was 5%- 6%.

• The company has launch of Seven Islands Vintage Single Malt Scotch Whisky in Chennai. Seven Islands Vintage Single Malt Scotch Whisky is mystical in origin and eclectic in spirit. This super premium whisky has a rich golden colour with notes of butterscotch, honey and vanilla, mingled with a delicate hint of spices and a faint trace of apples and pears. The launch is thus aligned to the company's concerted strategy to expand its geographic reach with a keen focus on premiumisation while fortifying its diversified brand portfolio. The Seven Islands Vintage has been meticulously designed and created by Ryan50 Scotland Limited, UK, a multi-faceted company in luxury and lifestyle industry, exclusively for the company, in strategic association with BenRiach Distillery, Scotland, which is a leading distillery in Scotland producing a variety of scotches. The brand was previously launched in London in April 2012, and continues well appreciated by whisky connoisseurs. The Company plans to further add premium scotch products to its portfolio in the coming future

• In H1 FY13. the company has launched new premium in brandy. It has launched Courrier Napoleon Blue – a super premium brandy launches in the state of Tamil Nadu. The Company plans to increase its foray steadily in other states too. It also launch of Courrier Napoleon Green premium brandy launches in the state of Tamil Nadu, Pudducherry, Goa, Sikkim

• The company has tied a strategic bottling agreement with Pernod Ricard India (PRI), to manufacture PRI's products at its bottling facilities in Maharashtra and Andhra Pradesh (AP) respectively, under the tie up model. The company has applied and is currently awaiting a Government order for extending its bottling capacities at Prag from 50,000 cases to 6 lakh cases. Post government approval for expansion, it will allocate 2 lakh cases per month to PRI from current level of 40,000 cases p.m.. In Maharashtra, the company will manufacture PRI products of 50,000 cases per month in FY13 and plans to increase it to 2 lakh cases in a phased manner upto in FY14 - FY15.

• The capex for expanding Shrirampur facility for modernization and expansion for PRI and the company is around Rs 50 crore, which will be spread between FY13 and FY14.

• Recently, it also announced the acquisition of 26% equity stake in Mason and Summers Marketing Services (MSMSPL), a leading Company in the business of sales, marketing and distribution in the alcohol beverage space in India. With MSMSPL's established distribution system and sales & marketing expertise, it will be able to promote its premium brands and access markets in North and North East India, where currently it has limited presence. The company has certain sharing formula with MSMSPL, primary base on volume, which is different for different geographies.

• The mgmt said in coming quarters there will be additional spends on sales and marketing due to launch of new products and brands.

• For FY13, the mgmt expects PBT to grow in same range of top-line.