New Delhi [India], Nov 6: Radico Khaitan, one of the largest spirits companies in the country, on Wednesday reported 10 per cent year-on-year increase in its net revenue at Rs 570 crore during the second fiscal quarter ending September.
It had reported a net revenue of Rs 518 crore in the second quarter of previous fiscal. Gross profit moved up by 3.6 per cent to Rs 276 crore in Q2 FY20 from Rs 266 crore in Q2 FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 86.27 crore. It was adjusted for environmental compensation of Rs 5.83 crore paid during Q2 FY2020.
However, EBITDA margin declined from 17.6 per cent to 15.1 per cent. Total comprehensive income went up by 59.7 per cent to Rs 78.32 crore. Gross margin declined from 51.4 per cent to 48.4 per cent due to the ongoing input cost pressures.
Radico reported total Indian Made Foreign Liquor (IMFL) volume of 5.78 million cases, up 11 per cent. “Our strong portfolio of premium brands continued to deliver expected growth,” said Chairman and Managing Director Lalit Khaitan. “During these challenging times, we have focused our energies towards investment in core premium brands, cost optimisation and enhancing supply chain efficiencies.”
Managing Director Abhishek Khaitan said the Q2 FY20 gross margin decline is after absorbing cost impact of the molasses plant capacity restriction at Rampur during the early part of the quarter. “Given our ability to maintain the strong growth trajectory, we are confident of delivering improved profitability when the industry scenario stabilises,” he said.
The company has three distilleries at Rampur in Uttar Pradesh and one at Aurangabad in Maharashtra which is a 36 per cent joint venture. It has a total owned capacity of 157 million litres and operates 28 bottling units (5 owned and 23 contracted) spread across the country.