Tilaknagar Industries Q2 results: Net profit rises 57.2% to Rs 58.2 cr

Indian-Made Foreign Liquor (IMFL) manufacturer Tilaknagar Industries Ltd has reported a 57.2 per cent rise in its consolidated net profit to Rs 58.23 crore for the second quarter ended September 2024, supported by cost-optimisation initiatives and marketing strategy.

The company had reported a net profit of Rs 37.04 crore a year ago, according to a regulatory filing from Tilaknagar Industries Ltd (TIL).

Its revenue from operations rose 9.74 per cent to Rs 823.32 crore in the September quarter. It was Rs 750.18 crore in the year-ago period.

"The growth in profitability to superior brand-mix as well as effective cost-optimisation initiatives. With the worst of the inflationary cycle over, the company anticipates further growth in profitability in the upcoming quarters," said TIL in its earnings statement.

 

TIL, which owns brands such as Mansion House Brandy, Courrier Napoleon Brandy, Mansion House Gold Whisky and Blue Lagoon Gin, recorded a 7 per cent rise in its total expenses for the September quarter to Rs 768.44 crore.

The total income of the company, which includes other income, was Rs 826.67 crore, up 10.12 per cent.

"The company's EBITDA margin expanded 422 basis points year-on-year to 17.6 per cent. Adjusted for the subsidy income, EBITDA came in at Rs 56 crore, at a margin of 15.3 per cent, showing a 188 basis points expansion year-on-year," said TIL in an earning statement.

This growth in profitability was witnessed despite muted growth in net revenue due to a temporary slowdown in growth, caused by a policy transition in one of the company's key markets Andhra Pradesh, which has recently opened liquor retail to private parties in the state, it added.

During the quarter, Tilaknagar Industries became net debt-free, nearly six months ahead of its original target date for achieving the net debt-free status.

"From a peak debt of more than Rs 1,100 crore in March 2019 to achieving the net debt-free status, we have come a long way. This transformation was achieved through a combination of financial prudence and achieving industry-beating profitable growth," said its Chairman and Managing Director Amit Dahanukar.

Shares of Tilaknagar Industries Ltd on Tuesday settled at Rs 338.65 on BSE, up 16.23 per cent.