IMFL Maker Tilaknagar Industries Net Profit Rises 130 Per Cent to Rs 32 Crore in Q2

Tilaknagar Industries Limited, one of the a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has reported a 130 per cent increase in net profit at Rs 32 crore in the quarter ended September 2023. 

The company had registered a PAT of Rs 13.9 crore in the corresponding quarter a year ago.

Maker of the famous ‘Mansion House’ brand, Tilaknagar Industries recorded a 29.1 per cent jump in net revenue at Rs 354.4 crore in the July-September 2023 quarter as against Rs 274.5 crore in the same period a year ago.

“Despite an increase in the price of Extra Neutral Alcohol and enhanced investment in marketing and brand building initiatives in Q2, our EBITDA margins expanded year-on-year to 13.4 per cent compared to 11.4 per cent in Q2 FY23. Our business has been resilient and we are now observing softening of packing material prices which will have a further favourable impact on our margins,” shared Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries.

Tilanknagar Industries’ Earnings before Interest Tax Depreciation and Amortization (EBITDA) stood at Rs 47.4 crorein the quarter under review as against Rs 31.4 crore in the corresponding quarter a year ago, a year-on-year growth of 50.9 per cent. The company’s EBITDA grew 61.5 per cent to Rs 86 crore in the half-year ended September 30, 2023 as against Rs 53.1 crore in the same period a year ago.

In the quarter ended September 2023, Tilaknagar Industries’ sales volumes increased to 28.5 lakh cases as against 24.3 lakh cases in the same period last year.

“The company has achieved a year-on-year volume growth of 17.2 per cent in Q2 FY24. In H1 FY24, Tilaknagar Industries volumes grew 27.8 per cent as against the overall IMFL industry growth of 3-4 per cent in the same period,” he added.

Tilaknagar Industries’ flagship brand Mansion House, is continuing to lead the company’s growth by helping it gain more market share in the brandy segment, across geographies. The company’s industry-first innovation under the Mansion House brand umbrella, premium flavoured brandy (Flandy), is also receiving encouraging market response and is contributing to the overall volumes.

As on September 30, 2023, Tilaknagar Industries net-debt stood at Rs 141 crore, down by Rs 128 crore from Rs 269 crore in the corresponding period a year ago. The company’s net debt has come down by Rs 350 crore over the past two and a half years.

In the quarter ended September 2023, the company completed the refinancing of its debt with Edelweiss Asset Reconstruction Company. Tilaknagar Industries refinanced the Rs 176 crore-debt with a fresh term loan of Rs 130 crore raised from Kotak Bank. This move will give the company the flexibility to better manage its cash flows, without significantly increasing the interest burden.

The company expects to be near net debt-free by March 2025.