Liquor maker Radico Khaitan Ltd reported a decline of 22.63 percent in its consolidated net profit at Rs 61.22 crore in the third quarter ended December 2022, on account of commodity inflation impacting margins. The company had posted a consolidated net profit of Rs 79.13 crore in the October-December quarter a year ago, Radico Khaitan said.
Its revenue from operations was down 3.97 percent to Rs 3,166.19 crore during the quarter under review as against Rs 3,297.24 crore in the corresponding quarter of the previous fiscal. Radico Khaitan's total expenses were at Rs 3,092.49 crore, down 3.30 percent in the third quarter of FY23, as against Rs 3,198.30 crore a year ago.
Its sales volume of total Indian-made foreign liquor (IMFL) was flat during the quarter at 6.99 million cases. In this segment, its Prestige and above brands volume were 2.59 million cases, up 14.1 percent. Its net sales from this segment were at Rs 402.5 crore, up 19.1 percent.
"On a Y-o-Y basis, continued commodity inflation resulted in gross margin compression, particularly in the non-IMFL business where we have recently received price increases. Given a favorable product mix change, the impact of cost-push on the gross margin of the IMFL business was mitigated to a large extent," said Radico Khaitan.
Although on a sequential basis, it has experienced stabilizing trends in certain commodities, the overall commodity scenario still remains volatile, it added.
Lalit Khaitan Chairman and MD said, "Radico Khaitan has delivered another quarter of a consistent financial performance driven by a strong premium volume growth, a robust brand portfolio, and excellent execution capabilities."
Over the outlook, he said the company remains committed to a long-term strategy of focusing on premiumization.
"While the raw material scenario still remains volatile, we have seen early signs of deflation in certain commodities. Furthermore, we have recently received price increases in the non-IMFL business in the state of UP which will hold us in good stead in the next fiscal year," he said.