Liquor maker Radico Khaitan today said its net profit rose by 77.69 per cent to Rs 20.47 crore for the third quarter ended December 31, 2010, over the same period previous fiscal.
The company had a net profit of Rs 11.52 crore in the same period last fiscal, Radico Khaitan said in a statement.
The company's net sales rose top Rs 363.3 crore for the third quarter ended December 31, 2010, compared to Rs 316.3 crore in the same period last fiscal.
"Radico Khaitan continues to focus on its premiumisation strategy and expects to see a strong volume growth in its mainline brands going forward," Radico Khaitan CMD Lalit Khaitan said.
He further added: "This growth is expected to be driven by ongoing momentum in the repackaged 8PM brand, market share gains in the vodka and premium brandy segments. Media campaigns launched during Q2FY11 for 8PM and Magic Moments had a positive impact on sales volumes during the last quarter."
He said that the company significantly increased its distribution presence in Tamil Nadu, a key brandy state, which contributed to strong year-on-year volume growth in Morpheus Brandy during third quarter.
"Radico Khaitan continued to reap the benefits of its focused brand building strategy during the last quarter. Magic Moments continues to build on its position as the largest selling Vodka in India and achieved 37 per cent y-o-y volume growth. The repackaged 8PM brand met with strong consumer acceptance resulting in 26% YoY volume growth," Khaitan said.
He added that the company continues to invest in marketing and promotion of its premium brands, which it expects to generate significant returns for shareholders over the coming years.
Shares of Radico Khaitan were today trading at Rs 137.25 on Bombay Stock Exchange in the late afternoon trade, up 2.04 per cent from its previous close.