Tilaknagar Industries Ltd. (TI), a leading player in the Indian Made Foreign Liquor (IMFL) industry announced its consolidated financial results for the  year ended March 31, 2012 on 28 May, 2012.

FY12 Total Revenues up 18% at Rs. 5,556 million
FY12 PAT up 19% at Rs. 472 min
FY12 Volumes at 13.24 mn cases
Total volumes in Q4 FY12 at 4.40 million cases
Board has recommended a final dividend of Rs. 0.80 per equity share of Rs. 10/- each

Commenting on these results, Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries Ltd, said: “The TI team has actualized our growth strategy for FY12, and delivered healthy sales and earnings, which also testifies the vision of the Management and the business strategies. We registered an increase of 22% in volumes in FY12, which is the cumulative result of the investments we have made to build our brands, along with the benefits of our geographic diversity and distribution network.Our current initiative of driving premiumisation of our portfolio along with the growth of our key brands, the launch of Mansion House premium whisky in Mumbai and Hyderabad as well as the expected launch of Seven Islands Scotch, reflects our commitment and efforts to tap the demand for premium and super premium products in domestic as well as international markets, the benefits of which will translate positively in the future financials of the company.While it has been a year of challenges and opportunities, TI remained committed to driving growth. We continue to capitalize on the potential in the industry, on the back of a robust model combined with the consumer appeal of our brands. During the quarter, we witnessed subdued volumes in Tamil Nadu- which is one of our key markets, on account of bottling issues. Thus we realigned our strategy and have introduced variants of our brands via new tie up arrangements in the region. With execution capabilities in place, we expect our performance in Tamil Nadu to normalize from Q2FY13 onwards. We look forward with confidence to the growth of TI’s business, while keeping a watchful eye on the business environment. We will continue to strengthen the model, dedicating our efforts and resources on brands and infrastructure to deepen our presence in the alcocbev industry.”

OUTLOOK:
Continued efforts to build presence and scale, whilst driving volumes
TI has in place the requisites to capture the demand in the IMFL space
Leverage the strength of brand portfolio, with a deeper emphasis on premium products
CSD to continue to facilitate growth in future too
Recent enlistments of Mansion House Whisky and Classic Whisky in CSD to further drive growth in the segment
TI to make investments to introduce additional brands in the coming years
The Company will sustain its expansion drive, penetrate deeper in existing markets
and cast its footprints in new geographies
The Company’s Mega project status and eligibility, encourages TI to enhance penetration and brand launch in Maharashtra; the Company is in the process of
applying for a VAT refund, expected to be received in Q1 FY13
Tamil Nadu, a key market for TI, expected to witness normalization in its volume performance, given the Company’s investments towards new tie up arrangements
along with launch of brand variants at higher prices in the region

Trend towards Premiumisation will remain key
Dedicated efforts to premiumize and innovate brand portfolio to tap the emerging consumer trends
Broadening the appeal of TI’s brands to a wider group of consumers
Launch of Seven Island’s scotch in India in FY13
MHW to see foray in several new markets

Holistic approach to drive long-term value and volume growth
Positive growth momentum in premium products coupled with price hikes expected in FY13, will help mitigate the increasing costs and drive margin
performance
While industry headwinds will remain, the Company expects to mitigate this impact through the implementation of planned revenue growth initiatives coupled with operational efficiency efforts
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