Radico Khaitan slipped 3.19% to Rs 789.50 after the liquor maker posted a 37% decline in standalone net profit to Rs 46.36 crore in Q4 FY22 as compared to Rs 73.55 crore reported in Q4 FY21.
Net sales increased 17.9% to Rs 812.52 crore in Q4 FY22 from Rs 689.23 crore in Q4 FY21. Total IMFL volume growth was 16.3% year on year led by Prestige & Above category volume growth of 28.1%. Prestige & Above net revenue growth was 30.5% compared to Q4 FY21. IMFL sales value accounted for 81.7% (versus 79.5% in Q4 FY21) of revenue from operations.Standalone profit before tax fell 33.4% to Rs 62.94 crore in Q4 FY22 over Q4 FY21. Total expenses were surged 24.7% year on year to Rs 732.89 crore in Q4 FY22. Rise in other expenses was due to higher power & fuel cost and other production related overheads.
EBITDA fell 20.4% to Rs 81.2 crore in Q4 FY22 from Rs 101.9 crore posted in Q4 FY21. On the margins front, EBITDA margin slipped to 10% in Q4 FY22 from 14.8% in Q4 FY21. Gross margin during the quarter declined to 42.7% in Q4 FY22 from 48% posted in Q4 FY21. Radico said continued commodity inflation had a strong bearing on the gross margins, particularly in the non-IMFL business.
Finance Cost decreased by 50.5% year on year from Rs 4.6 crore in Q4 FY21 to Rs 2.3 crore in Q4 FY22. The company said its cost of borrowing is one of the lowest in the industry due to a stable profitability, strong capital structure and improved liquidity position.
As of 31 March 2022, the company's net debt stood at Rs 116 crore which is lower by Rs 81.5 crore posted at the end of March 2021 despite of capex on new projects of Rs 71 crore.
On full year basis, the company reported a 6.8% decline in standalone net profit to Rs 252.16 crore in spite of a 19.6% rise in net sales to Rs 2,868.01 crore in FY22 over FY21.
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Commenting on the results and performance, Dr. Lalit Khaitan, chairman & managing director said, Radico Khaitan has delivered a double-digit IMFL volume growth during the year driven by the strong performance of Prestige & Above category. As we navigate through the challenging cost environment, we will focus on strengthening our product mix and driving supply chain efficiencies.
Both our projects, Rampur dual feed and Sitapur green field, are progressing well and are ahead of the earlier estimated timelines. We have already placed fixed-price orders for the key equipment with the leading global vendors. We expect Rampur dual feed plant to be operational by Q3 FY2023. These projects are being monitored directly from the head-office by the senior management team under my supervision and guidance, he added.
Abhishek Khaitan, managing director said, We expect to maintain a double digit IMFL volume expansion trajectory in FY23. In February 2022, 8PM Premium Black whisky achieved volumes of 2 million cases and is now available across 20 states in India. Recently launched Royal Ranthambore Heritage Collection Royal Crafted Whisky and Magic Moments Dazzle Vodka are now available across 7 states and continue to gain consumer confidence.
Despite a strong operational performance, the profitability of the quarter was subdued due to an unprecedented inflation seen across all commodities. The impact was more severe on the non-IMFL business while IMFL business was impacted to a lesser extent. However, we have not faced any supply chain disruption. In the near term, the inflationary scenario is expected to remain unpredictable, he added.
He lastly added, During this period, the company is focused on value engineering across the brand portfolio to minimize the impact of cost push. We have also received price increases in a few states which would help offset the input cost pressure to a large extent. This coupled with the backward integration benefit from our Rampur dual feed plant is expected to support profitability improvement during the second half of FY2023. With our focus on free cash flow generation, we have been able to reduce our net debt by Rs 82 crore during the year after investment in growth capex.
The board recommended a dividend of Rs 3 per equity share for the financial year ended 31 March 2022.
Radico Khaitan is one of the oldest and the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India.
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