Tilaknagar Industries Ltd. (TI), a leading player in the Indian Made Foreign Liquor (IMFL) industry has announced its consolidated financial results for the quarter ended December 31, 2011, on 09 February 2012.
Q3 FY2012 FINANCIAL HIGHLIGHTS
Q3 FY2012 Total Revenues up 16% at Rs 1,499 mn
Q3 FY2012 PAT up 51% at Rs 166 mn
Total volumes in Q3 FY2012 at 3.2 mn cases
In line with revenues, EBITDA in Q3 FY2012 grew 47.6% to Rs 441.4 million overQ3 FY2011, which reflects
Improved average realizations led by the Company’s ‘premiumisation’strategy
Benefits of price hikes taken ‐ on the flagship brand ‘Mansion House
Brandy’ in Karnataka and various brands in the Canteen Stores
Department (CSD) ‐ generate visible contributions to earnings
Increased circulation of Family Shaped Bottles/ market bottles helped the Company cap its costs and safeguard itself in a scenario of rising glass prices
Commenting on these results, Amit Dahanukar, Chairman & Managing Director,Tilaknagar Industries Ltd, said: “TI has displayed healthy performance this quarter, which reinforces our earnest endeavors to extend volume growth whilst generating higher margins.This further resonates that our high earning premium brands and differentiated products are providing the momentum, for us, to continue penetration in our core markets and simultaneously set footprints in new regions.
We believe, we have in the past, made discerning investments in our business and will continue to do so, to unlock value and seize growth opportunities in the industry. Thus our capacity expansions, acquisition of ‘Punjab Expo’ and tactical cost controlling initiatives such as Family shaped bottles are all in tangent with our commitment to capitalize our strengths and eventually the growing demand.In conjunction with this philosophy, we launched our premium ‘Mansion House Whisky’,which will provides us with multifold benefits as we continue to leverage the strengths of our flagship brand‐ Mansion House, fortifying our portfolio and expanding brand TI. Our performance, thus imparts confidence to our approach and we remain focused on growing our market share and, as always, on delivering value to our customers as well as our shareholders.”
Commenting on these results, Lalit Sethi, President & Chief Financial Officer,Tilaknagar Industries Ltd, said: ““I am pleased to report that the Company has delivered healthy growth in revenues and earnings, on account of a fine blend of improved volumes and higher realization. Our progress, thus advocates, the systematic execution of key aspects such as brand development and efficient operations.Our efforts in dedicating our resources, while concentrating on the premiumisation strategy, today, have resulted in sustainable contributions to our overall revenues. Another key catalyst for increased operating profits, this quarter, was the price hike taken in Karnataka for our flagship and Millionaire brand‐ Mansion House Brandy. TI also took a price increase on various brands in the CSD segment. These factors, along with the continued success of our cost reduction initiative of the ‘Family Shaped Bottles’/ market bottles have empowered us to generate incremental earnings for TI.Going forward, investments in capacities and brands will fuel our strategic goal of expanding in different regions and serve as a blueprint to deliver long term sustainable profitability. “
OPERATIONAL PERFORMANCE HIGHLIGHTS:
Total number of cases sold:
Q3 FY2012 at 3.2 mn compared to 2.9 mn in Q3 FY2011
9M FY2012 at 8.8 mn compared to 7.8 mn in 9M FY2011
TI’s volume growth continues advancing at a faster pace than industry average
on the back of
Attractive brand portfolio featuring strategic product‐price mix aimed at translating rising demands in the IMFL industry to earnings for the
Company
Major festivities in Q3 also contribute to higher volumes
‘Madira Rum’ witnessed y‐o‐y growth of 61.2% and 44.4% in Q3 FY2012 and 9M FY2012
‘Mansion House Brandy’ witnessed yoy growth of 10% in 9M FY2012
Rum segment witnessed strong traction in the Southern Indian states
CSD segment – a key catalyst for enhancing volumes