Radico Khaitan (Q4 FY13)

India Infoline News Service | Mumbai |

Radico posted ~17% yoy rise in net sales driven by 16% yoy growth in prestige & above brands which accounted for 15.3% share of total Q4 volumes of 4.55mn cases

CMP Rs127, Target Rs145, Upside 13.8%

  • Radico posted ~17% yoy rise in net sales driven by 16% yoy growth in prestige & above brands which accounted for 15.3% share of total Q4 volumes of 4.55mn cases

  • EBIDTA was impacted by one offs (due to lower utilization of Rampur distillery for ~2 months on account of Kumbh Mela) and adjusted for this, it would have been higher by Rs35mn; ENA costs increased Rs3.9/ltr (or Rs15.8/case) leading to negative impact of Rs72mn although the hike in RM cost was offset to an extent by price increases in Karnataka and Andhra Pradesh taken during the quarter

  • Reported PAT stood at Rs157mn supported by lower tax rate yoy and included Rs12mn in FX loss (Rs77mn for FY13); Net debt stood at Rs7.5bn or 4.1x FY13 EBIDTA

  • We expect continued traction in prestige & above brands which would further improve revenue mix in the current fiscal along with expected price increases in other key liquor consuming states; company expects ENA costs to remain flat while glass bottle prices could moderate due to excess capacity. We have lowered our earnings estimates for FY14/15 mainly due to lower expected EBIDTA margin and higher tax rate but retain BUY for a revised 9-mth target of Rs145 (earlier Rs162)  

Results table
(Rs m) Q4 FY13 Q4 FY12 % yoy FY13 % yoy
Net sales 3,315 2,838 16.8 12,584 10.0
Raw materials (1,396) (1,047) 33.3 (5,232) 15.8
Purch of traded goods (213) (117) 82.2 (618) (34.5)
Staff costs (201) (180) 11.3 (787) 11.5
Selling & Distribution (575) (586) (1.9) (2,346) 14.5
Other expenditure (537) (510) 5.3 (1,758) 14.9
Operating profit 393 397 (1.0) 1,842 9.0
OPM (%) 11.9 14.0 (213) bps 14.6 (14) bps
Depreciation (88) (103) (14.8) (353) 7.5
Interest (182) (182) (0.2) (701) 20.5
Other income 74 76 (2.9) 304 42.3
PBT 197 188 5.1 1,093 9.9
Tax (40) (18) 122.2 (320) 37.3
Effective tax rate (%) 20.3 28.7 (844) bps 29.3 249 bps
Adjusted PAT 157 170 (7.3) 773 1.5
Adj. PAT margin (%) 4.7 6.0 (124) bps 6.1 (52) bps
Extra ordinary items - (125) - - -
Reported PAT 157 45 252.0 773 21.4
Source: Company, India Infoline Research

Volume highlights
Vols (mn cases) Q4 FY13 Q4 FY12 % yoy FY13 FY12 % yoy
Prestige & Above brands 0.7 0.6 16.0 3.1 2.6 19.2
Regular 2.7 2.5 8.3 11.0 10.2 7.3
Others 1.2 1.2 0.5 4.9 4.9 1.4
Total 4.6 4.2 7.2 19.0 17.7 7.4
Prestige & Above brands % of total 15.3 14.1   16.2 14.6  
Source: Company, India Infoline Research

Financial summary
Y/e 31 March  (Rs m) FY12 FY13E FY14E FY15E
Revenues 11,439 12,584 13,973
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.