Liquor maker Radico Khaitan reported a 26% rise in fourth-quarter profit on Tuesday, driven by strong demand for its premium brands.
The Magic Moments vodka maker reported a consolidated net profit of Rs 54 crore for the quarter ended March 31 up from Rs 43 crore a year ago.
The popularity of premium liquor, particularly whiskey has been on the rise in India, mainly among the affluent urban population, analysts said. This has led to the expansion of whiskey distilleries and the availability of a wider variety of whiskey brands in the market.
Demand for flavoured alcoholic beverages, including vodka and rum, has also gained traction throughout the last financial year, analysts added.
Radico's premium segment, which includes brands like Rampur Indian Whiskey and After Dark, reported a 14.2% increase in sales volume, anchoring a 16.1% rise in the segment's revenue to Rs 504 crore.
Revenue from operations rose 15% to Rs 3,895 crore.
"We expect to continue to deliver a double-digit percentage growth in premium volume in FY2025," the company said in its investor presentation.
"Prices of certain packaging materials have softened recently, we cautiously monitor the trends of grain, extra neutral alcohol and glass bottles where volatility persists," Radico added.
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