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.
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.
By clicking on submit button, you authorize IIFL & its representatives & agents to provide information about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters etc. . you confirm that laws in relation to unsolicited communication referred in National Do Not Call Registry as laid down by Telecom Regulatory Authority of India will not be applicable for such information/ communication.