IMFL maker Tilaknagar Industries profit after tax grows 55.7% to Rs 40.1 Crore in Q1

Leading Indian-Made Foreign Liquor (IMFL) manufacturer, Tilaknagar Industries has reported a 55.7% year-on-year jump in its Profit After Tax (PAT) (excluding exceptional items) at Rs 40.1 crore for the quarter ended June 30, 2024. The company had recorded a net profit of Rs 25.7 crore in the same period a year ago.

The maker of Mansion House Brandy, India’s largest and world’s second-largest selling brandy, Tilaknagar Industries’ revenue increased to Rs 313.2 crore in the quarter ended June 30, 2024 as against Rs 304.1 crore in the corresponding period a year ago.

Amit Dahanukar, chairman and managing director, Tilaknagar Industries said, ”We have recorded our highest- ever Q1 EBITDA, and our EBITDA margin growth this quarter was driven by cost optimization initiatives and an increasing share of premium products in our portfolio. Owing to the industry-wide disruption caused by the elections, the volume growth remained somewhat muted in Q1, which was on expected lines. Southern India states, that contribute over 85 per cent of TI volumes, saw de-growth of 0.1 per cent year-on-year in IMFL volumes in Q1 due to the aforementioned disruptions.”

The company’s Earnings Before Interest Tax Depreciation and Amortization (EBITDA) in the quarter under review improved by 30.8% to Rs 50.2 crore as against Rs 38.4 crore in the same period a year ago. Adjusted for subsidy income, EBITDA for Q1 FY25 stood at Rs. 45 crore.

Despite industry-wide inflationary pressures especially on Extra Neutral Alcohol, Tilaknagar Industries’ EBITDA margin improved by 341 basis points (bps), standing at 16 per cent in the quarter ended June 30, 2024 as against 12.6 per cent in the corresponding period a year ago. Adjusted for subsidy income, the company’s EBITDA margin stood at 14.5%.

In the quarter ended June 30, 2024, the company’s sales volumes increased to 25.4 lakh cases as against 25.1 lakh cases in the year ago period.

“We are expecting two of our key Southern states to come out with progressive excise policies very soon, which will not only benefit the industry, but also TI to a greater extent, given our market leadership and strong brand equity with consumers in both the states. Going forward, we are confident of resuming our industry-beating growth, with focus on a good mix of market share gains in our existing portfolio, as well as innovative launches within brandy and beyond,” Dahanukar added.

Tilaknagar Industries continued to remain the third-largest Prestige & Above IMFL player in the states of Telangana and Karnataka in Q1 FY25. The company also held its position as the largest IMFL player in Puducherry in the quarter under review.

The company’s latest flavor innovation, the Mansion House Green Apple Flandy (Flavored Brandy), recently launched in Telangana and Andhra Pradesh, achieved 20% share of Flandy volumes across flavours in the two states within the first quarter of its unveiling. In addition, the company’s second millionaire brand, Courrier Napoleon Brandy (CNB) witnessed a growth of more than two times in Q1 FY25 in the Prestige & Above segment, indicating that the premiumization trend playing out for the brand as well.

As on June 30, 2024, Tilaknagar Industries’ net debt stood at Rs 42.6 crore. In the quarter under review, the company reduced its net debt by Rs 32 crore. The company aims to become near net debt- free over the course of FY25.