Radico Khaitan gains after Q1 PAT climbs 21% YoY to Rs 76 cr in FY25

Revenue from operations (excluding excise duty) increased 19.1% YoY to Rs 1,136.5 crore during the quarter.

Proit before tax (PBT) jumped 20.6% to Rs 101.4 crore in Q1 FY25 as compard with Rs 84 crore in Q1 FY24.

Total Indian made foreign liquor (IMFL) volume fell 4.0% whereas Prestige & Above category volume grew 14.3%. Prestige & Above net revenue growth was 19.1% compared to Q1 FY2024. The company expects to continue to deliver a double-digit premium volume growth in FY2025. Non-IMFL revenue growth was due to full distillery capacity utilization of the Sitapur plant which was commissioned during Q3 FY2024.

During Q1 FY2025, A&SP was 5.3% of IMFL sales compared to 5.9% in Q1 FY2024.

EBITDA stood at Rs 148.2 crore, registering the growth of 24.6% as compared with Rs 118.9 crore recorded in Q1 FY24. EBITDA margin expanded to 13% in Q1 FY25 as against 12.5% in Q1 FY24.

The company has incurred Rs 923 crore on the Rampur Dual Feed, Sitapur Green Field, and other projects since April 2022. Increase in Net Debt over March 2024 is primarily due to cyclical building up of inventory at the plants.

Gross Margin during the quarter was 41.5% compared to 43.6% in Q1 FY2024 and 41.0% in Q4 FY2024. Gross Margin was impacted YoY basis due to significant foodgrain inflation. Grain price inflation had a negative impact of 335 bps YoY on Gross Margin. Although, prices of certain packaging materials have softened recently, we cautiously monitor the trends of Grain and ENA where volatility persists.

On a quarterly basis, the amount may vary but we expect to maintain A&SP spend around 6% to 8% of our IMFL revenues to be able to drive the sales momentum.

Dr. Lalit Khaitan, chairman & managing director, said, “During Q1 FY2025, we achieved strong premium volume growth despite a challenging operating environment. External factors such as lower consumption growth, concerns about ongoing foodgrain inflation, and volatile commodity prices did not deter us from delivering robust operating performance. We remain confident in the medium to long-term potential of the Indian IMFL sector. With our distinguished portfolio of luxury and premium brands, coupled with our execution expertise and an expansive distribution network, Radico Khaitan is well-positioned to seize forthcoming industry opportunities. We will continue enhancing our brand portfolio to outperform the industry. Moving forward, we will stay focused on our strategic priorities and deliver consistent and profitable growth.”

Abhishek Khaitan, managing director, said: “FY2025 started on a positive note as we continued to deliver on our strategic roadmap. During the quarter, we launched Rampur Asava, Sangam, and Jaisalmer Gold Edition in India, enhancing the experience for connoisseurs of luxury brands. Our plan is to broaden the distribution of these distinguished brands throughout the year. We remain committed to curating a focused portfolio of premium brands that resonate with consumer aspirations. Moving forward, we will invest in strengthening our brand portfolio through targeted marketing and the introduction of select new brands in the luxury and premium space. As the year progresses, we expect the broader raw material basket to remain stable. Coupled with ongoing premiumization, we anticipate staying on track with our margin expansion trajectory.”

Radico Khaitan is among the oldest and one of the largest manufacturers of Indian-made foreign liquor (IMFL) in India. It is one of the few companies in India to have developed its entire brand portfolio organically.