Radico Khaitan Q3 net jumps on strong premium brands
Continuing its robust performance, country's No 2 liquor maker Radico Khaitan Ltd reported a 78% surge in Oct-Dec and net profit riding high on increasing demand for its high margin premium brands.business Updated: Feb 01, 2011 17:20 IST
Continuing its robust performance, country's No 2 liquor maker Radico Khaitan Ltd reported a 78% surge in Oct-Dec and net profit riding high on increasing demand for its high margin premium brands.
"Our premium brands have continued to do well and the volume growth in the IMFL segment this quarter has been 23%," Abhishek Khaitan, managing director told Reuters.
Indian made foreign liquor (IFML) makes 80% of the total sales of the company. It has brands such as 8 PM whiskey, Magic Moments, Contessa Rum and Old Admiral Brandy in its portfolio.
During the quarter, Magic Moments vodka saw a 37% growth and 8 PM whiskey 26%.
Earlier in the day, the company said its net profit in Oct-Dec rose to 205 million rupees from 115 million rupees a year ago.
Net sales rose to 3.63 billion rupees from 3.16 billion rupees.
Reacting to the robust earnings, shares of the company on Tuesday ended 1.08% up
at 135.95 rupees in a Mumbai market that was down 1.7%.
The company also benefitted from lower prices of molasses--a key raw material. It expects the prices to remain at these levels during 2011.
Molasses prices have been softening since April last year.
The firm's EBITDA rose 14% to 412 million rupees in the December quarter.
Radico had earlier said it is expecting a topline growth of 20-22% and expects operating profits to climb 27-30% in FY11.
The company plans a national roll out of its recently introduced premium whiskey brand After Dark.
The liquor maker has been in in advanced talks for marketing tie-ups with three overseas companies and plans to make some announcements in the first quarter of the next fiscal.
It has a marketing tie-up with California-based Ernest & Julio Gallo. It also has a joint venture with world's largest liquor maker, UK's Diageo Plc, to make and sell liquor products in India.