Tilaknagar Industries Q3 PAT Jumps 78.3 pc to Rs 43.8 Cr; Revenue Surges 24 pc

Tilaknagar Industries Limited is an Indian-Made Foreign Liquor (IMFL) producer, has announced a significant 78.3 percent increase in net profit, amounting to Rs 43.8 crore for the quarter ending in December 2023.

This marks a notable rise from the Profit After Tax of Rs 24.6 crore (excluding exceptional items) recorded in the corresponding period of the previous year.

Tilaknagar Industries, known for its popular 'Mansion House' brand, experienced a 24 percent increase in net revenue, reaching Rs 377 crore for the quarter ending in December 2023, compared to Rs 303 crore during the same period the previous year.

“Inflationary pressures are prevalent in the industry as a whole, especially on the raw material front. Notwithstanding that, we have been able to expand our margins due to a sustained premiumization trend and other cost optimization initiatives. In the nine-month period ended December 2023, our EBITDA margin expanded to 13.3 per cent, in comparison to 11.6 per cent in the same period of FY23.” said Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries.

In the quarter under examination, Tilanknagar Industries recorded an Earnings Before Interest Tax Depreciation and Amortization (EBITDA) of Rs 51.4 crore, marking an increase from Rs 40.6 crore in the previous year's corresponding period.

The company's EBITDA expanded by 27 percent, with an EBITDA margin of 13.6 percent compared to 13.4 percent in the same quarter of the previous year.

During the December 2023 quarter, Tilaknagar Industries witnessed a rise in sales volumes to 29.5 lakh cases, compared to 26 lakh cases in the corresponding period of the previous year.

“In Q3 FY24, our company has achieved a year-on-year volume growth of 13.1 per cent. In the nine-month period ended December 2023, Tilaknagar Industries volumes grew 22.2 per cent, year-on-year, in comparison to the overall IMFL industry growth of 2-3 per cent for the same period”, Mr Dahanukar added.

 As a strategic approach, Tilaknagar Industries is focused on addressing market demands within various price segments of the brandy category.

In alignment with this strategy, the introduction of its newest premium product, Mansion House Chambers, in Puducherry, reflects this commitment.

With the addition of Mansion House Chambers, the company now offers a total of 5 products at different price levels within the brandy category in Puducherry, with plans to extend this initiative to other states as well.

 As of December 31, 2023, Tilaknagar Industries' net debt was recorded at Rs 119 crore, showing a decrease of Rs 63 crore from the previous figure of Rs 182 crore as of March 31, 2023.

In January 2024, CRISIL assigned a stable rating of A to Tilaknagar Industries, indicating a possibility of the company securing lower interest rates in the coming period.

The company anticipates achieving a nearly debt-free status by March 2025.