Radico Khaitan Ltd's Q2FY19 standalone net profit rises 73.2% yoy to Rs49.5cr : Beats Estimates

The company’s standalone revenue stood at Rs517.7cr, up 15.5% yoy and flat sequentially

Oct 24, 2018 01:10 IST India Infoline Research Team

Radico Khaitan Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Net Revenue 517.7 15.5
EBITDA 91.7 39.5
EBITDA Margin (%) 17.7 305
Net Profit  49.5 73.2
***EBITDA margin change is bps
Radico Khaitan reported strong set of numbers for Q2FY19, ahead of the consensus estimates. Revenue (net of excise duty) of the company grew by 15.5% yoy to Rs517.7cr, broadly in-line with estimates. Gross margin expanded by 330bps yoy led by soft raw material costs. Thus, EBITDA grew by 39.5% yoy to Rs91.7cr and EBITDA margin for the company improved by 305bps yoy to 17.7%. Led by EBITDA growth and lower interest outgo, PAT jumped by 73.2% yoy to Rs49.5cr, ~7% higher than estimates.
  • Prestige & Above brands volumes increased by 14.6% yoy to 14.6 lakh cases, and their contribution to the total IMFL volumes stood at 28.1% (against 27.3% Q2FY18).
  • Regular & Others reported volume growth of 10.3% yoy to 37.5 lakh cases.
  • Company further reduced the net debt by Rs59.8cr (total Rs200cr during H1FY19) and hence, interest cost declined by ~48% yoy to Rs9.2cr in Q2FY19 (Rs17.7cr in Q2FY18).
  • Other income declined by 17.9% yoy to Rs4.2cr.
  • Tax rate for the quarter stood at 34.8% against 33.5% in Q2FY18.

Technical View:

Radico Khaitan Ltd is currently trading at Rs. 353, up by 13.4 points or 3.95% from its previous closing of Rs. 339.60 on the BSE.
The scrip opened at Rs. 351 and has touched a high and low of Rs. 356.55 and Rs. 340.05 respectively. So far 5,71,977 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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