Radico Khaitan Q3 net profit down 5.8% at Rs 79.13 crore; sales up 8.8%

Liquor maker Radico Khaitan Ltd has reported a decline of 5.88 per cent in its consolidated net profit at Rs 79.13 crore for the third quarter ended December 2021.

The company had posted a consolidated net profit of Rs 84.08 crore in the October-December quarter a year ago, Radico Khaitan said in a BSE filing on Thursday.

However, its revenue from operations was up 8.84 per cent to Rs 3,306.67 crore during the quarter under review as against Rs 3,037.90 crore in the corresponding period a year ago.

Radico Khaitan's total expenses were at Rs 3,207.73 crore, up 9.39 per cent in Q3/FY 2021-22, as against Rs 2,932.29 crore.

Its sales volume of total Indian-Made Foreign Liquor (IMFL) was up 7.4 per cent during the quarter to 6.98 million cases.

Meanwhile, in a separate filing, Radico Khaitan informed that its board in a meeting held on Thursday approved establishment of a new greenfield grain-based distillery in Sitapur, Uttar Pradesh, with a production capacity of up to 330 KL per day.

It also approved conversion of its 140 KL per day molasses plant at Rampur, UP into dual feed.

Commenting on the development, Radico Khaitan Chairman and Managing Director Lalit Khaitan said, "We are at an inflexion point and as we move forward into the next stage of growth, we are very excited to embark upon a judicious capex plan. This will enable us to expand our in-house capabilities to drive future momentum of the branded business along with securing raw material supplies".

"The investment that we are making is return accretive and will enhance value to all our stakeholders. We remain confident of the long-term potential of the Indian alcobev sector and Radico Khaitan's ability to deliver a sustainable profitable growth, he added.