Radico Khaitan traded flat in the morning on August 4 despite reporting a strong set of earnings in Q1FY24 a day earlier. The spirits maker’s decline in sales of its “regular and others” segment seemed to weigh on sentiment.
The company reported a 10.2 percent year-on-year (YoY) increase in net profit at Rs 68.3 crore in the June quarter. Revenue from operations increased 26.4 percent to Rs 953.9 crore, the company said on August 3.
It, however, reported a 7.2 percent YoY drop in volume sales of its “regular and others” segment at 4.15 million cases. The quarterly revenues from this segment declined 5.5 percent YoY at Rs 278.3 crore.
The EBITDA margin, a metric of profitability, was up 30 basis points to 12.5 percent. EBITDA is short for earnings before interest taxes depreciation and amortisation. One basis point is one-hundredth of a percentage point.
In Q1FY24, the company, which owns brands like Jaisalmer, Magic Moments and Rampur India Single Malt, reported a 3 percent increase in total own volumes at 6.53 million cases. Total volumes including royalty brands increased by 7.9 percent at 7.36 million cases, the company said.
Follow our live blog for all the market action
“We continue to focus on our luxury and premium portfolio. Although, we have faced raw material pressure in the short term but the mid to long-term growth and margin trajectory remains intact,” said Chairman and Managing Director Lalit Khaitan said.
The company would continue to invest in strengthening the brand portfolio and delivering value to consumers. The Sitapur greenfield distillery project was progressing well and was in the last stage of implementation. The company expects to start commercial production in Q2 FY24, Khaitan added.
At 10.30 am, Radico Khaitan was quoting at Rs 1,442.35 on the National Stock Exchange, down 0.35 percent from the previous close.
Radico Khaitan is engaged in the production and distribution of alcoholic beverages. Its business encompasses a diverse portfolio of spirits, including whisky, rum, brandy, and vodka.
The company is the largest manufacturer of Indian Made Foreign Liquor (IMFL) with a production capacity of 165 million litres per annum.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
