Radico Khaitan Q3 PAT climbs 45% to Rs 80 cr

Radico Khaitan reported a 44.6% jump in net profit to Rs 80.53 crore on 5.6% rise in revenue from operations to Rs 684.21 in Q3 December 2020 over Q3 December 2019.

The liquor maker's profit before tax stood at Rs 108.17 crore in Q3 December 2020, 45.1% higher than Rs 74.54 crore in Q3 December 2019. Current tax for quarter ended December 2020 was steeply higher at Rs 25.93 crore as against Rs 16.43 crore in December 2019.

EBITDA grew by 21.3% year on year to Rs 123.98 crore in Q3 FY21 from Rs 102.19 crore in Q3 FY20. EBITDA margin improved to 18.1% in Q3 FY21 from 15.8% in Q3 FY20, on account of gross margin improvement and cost rationalization.

During December 2020, Radico reported highest ever monthly IMFL sales volumes. IMFL sales value accounted for 81.7% of the net revenue from operations. Total IMFL volume were at 6.49 million cases, up 0.7% YoY. Prestige & Above brands volume were at 2 million cases (+5.3% YoY). Prestige & above brands contribution to the total IMFL volumes were at 30.7% versus 29.4% same period last year.

During Q3 FY21, advertising & sales promotion expenses increased by 36.7% to Rs 44.37 crore. As a percentage of IMFL sales, A&SP expenses were 7.9% in Q3 FY21 compared to 7.1% for the full year FY20. The company continues to make judicious marketing investment which has enabled us to continue market share expansion.

Commenting on company's performance, Abhishek Khaitan MD of Radico Khaitan said, "During Q3 FY2021, we reported Prestige & Above category volume growth of 5.3% led by our key brands such as 8PM Premium Black whisky and 1965, Spirit of Victory rum. As we continue our premiumization journey, we expanded our markets for 8PM Premium Black with launch in two more states. The company also extended the Verve premium vodka portfolio with two new flavors - Lemon Lush and Cranberry Tease. To increase our market penetration for Jaisalmer Indian Craft Gin, it is now made available in three more metro cities - Hyderabad, Bangalore and Mumbai. The investment that we made in the expansion of our malt distillation and maturation capacities will start to bear fruits over the next couple of years with more quantities of Rampur Indian Single Malt being made available for the domestic market. We continue to make investments behind our premium brand portfolio which will drive the future growth. Our revenue grew by 5.6% y-o-y and EBITDA by 21.3% during Q3 FY2021. In the coming quarters, we will continue to focus on new product development and increasing market share."

As of 31 December 2020, Radico's net debt was at 254.73 crore versus Rs 382.04 crore as of 31 March 2020.

Shares of Radico Khaitan were down 0.07% at Rs 497.90. Radico Khaitan produces and distributes branded liquor. The company operates molasses and grain distilleries and produces whiskey, rum, brandy, and vodka.

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