Liquor maker Radico Khaitan Ltd on Tuesday reported a decline of 22.63 per cent in its consolidated net profit at Rs 61.22 crore in the third quarter ended December 2022, on account of commodity inflation impacting margins.
The company had posted a consolidated net profit of Rs 79.13 crore in the October-December quarter a year ago, Radico Khaitan said in a BSE filing.
Its revenue from operations was down 3.97 per cent to Rs 3,166.19 crore during the quarter under review as against Rs 3,297.24 crore in the corresponding quarter of the previous fiscal.
Radico Khaitan's total expenses were at Rs 3,092.49 crore, down 3.30 per cent in the third quarter of FY23, as against Rs 3,198.30 crore a year ago.
Its sales volume of total Indian-made foreign liquor (IMFL) was flat during the quarter at 6.99 million cases.
In this segment, its Prestige and above brands volume was 2.59 million cases, up 14.1 per cent. Its net sales from this segment was at Rs 402.5 crore, up 19.1 per cent.
"On a Y-o-Y basis, continued commodity inflation resulted in gross margin compression, particularly in the non-IMFL business where we have recently received price increases. Given a favourable product mix change, the impact of cost-push on the gross margin of the IMFL business was mitigated to a large extent," said Radico Khaitan in its earnings statement.
Although on a sequential basis, it has experienced stabilising trend in certain commodities, the overall commodity scenario still remains volatile, it added.
Chairman & Managing Director Lalit Khaitan said: "Radico Khaitan has delivered another quarter of a consistent financial performance driven by a strong premium volume growth, a robust brand portfolio and excellent execution capabilities." Over the outlook, he said the company remains committed to a long-term strategy of focusing on premiumisation.
"While the raw material scenario still remains volatile, we have seen early signs of deflation in certain commodities. Furthermore, we have recently received price increases in the non-IMFL business in the state of UP which will hold us in good stead in the next fiscal year." he said Shares of Radio Khaitan Ltd settled at Rs 1,118.90 on BSE on Tuesday, down 1.83 per cent from the previous close.
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