Radico Khaitan Q1 profit soars 84.4% to ₹47.37 crore
Radico Khaitan's total standalone revenue grew 53.39% to 2,118.01 crore during the first quarter of 2018-19 on a year-ago basis
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Bengaluru: Liquor company Radico Khaitan Ltd’s April-June quarter profit jumped 84.4%, led by double-digit volume growth in both value brands as well as premium brands.
Total standalone revenue grew 53.39% to ₹ 2,118.01 crore during the first quarter of 2018-19 on a year-ago basis, Radico reported in a filing with the BSE on Tuesday.
Profit soared 84.4% to ₹ 47.37 crore from ₹ 25.68 crore last year.
The company’s prestige and above segment, i.e. its premium brands, now accounts for over 30% of total volumes. That’s an increase from the 28.1% it used to contribute during the same period last year. Volume sales at this business segment, which includes names like 8PM Premium Black whisky and Morpheus brandy, grew 30.2% on a year-ago basis during the quarter.
“In a very competitive business environment, Radico Khaitan has picked its spots strategically and created a differentiated market positioning for itself. With a uniquely diversified bouquet of brands and significantly improved industry operating environment, Radico Khaitan expects to continue to achieve higher benchmarks of performance during the year," the company’s chairman Lalit Khaitan said in a statement.
Radico’s regular segment, i.e. mass or value brands, also reported double-digit volume sales growth on an annual basis (14.7%). This business division includes brands like Magic Moments vodka and lower-priced variants of 8PM whisky.
The company also reduced net debt by ₹ 140 crore during the quarter. In January, Radico said it planned to become a debt-free company in three years. Radico’s debt stood at ₹ 785 crore for the year ended 31 March 2017. By this January, the company had reduced it to ₹ 655 crore. It did not provide an updated figure in its statement on Tuesday.
“While our existing brands such as 8PM whisky, Magic Moments vodka and Morpheus super premium brandy delivered sustained growth, newly launched brands such as 1965 premium rum and 8PM Premium Black whisky started to gain market traction and make meaningful volume contribution," said managing director Abhishek Khaitan.
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