Radico Khaitan logs 13% y-o-y growth in Q1 net profit

8 Aug 2024 , 11:15 AM

Radico Khaitan Ltd reported a 13.3% YoY rise in net profit of ₹77.4 Crore for the first quarter ending June 30, 2024.

Radico Khaitan reported a net profit of ₹68.3 Crore for the quarter in a regulatory filing. The company’s income from operations climbed by 19.1% to ₹1,136.5 Crore from ₹953.9 Crore in the previous year.

In the first quarter of this fiscal year, EBITDA increased by 24.8% to ₹149.1 Crore, up from ₹119.5 Crore in the same period last year. In the reporting quarter, the EBITDA margin was 13.1%, up from 12.5% in the same period last fiscal year.

Radico Khaitan’s total IMFL volume fell 4% in the first quarter, but the Prestige & Above category witnessed a 14.3% increase. The Prestige & Above segment’s net sales increased by 19.1% compared to the first quarter of FY24, and the business expects to maintain double-digit premium volume growth until FY2025.

Non-IMFL revenue growth was driven by the full use of distillery capacity at the Sitapur plant, which began operations in the third quarter of FY24. The quarterly gross margin was 41.5%, compared to 43.6% in Q1 FY24 and 41% in Q4 FY24. The year-on-year reduction in gross margin was mostly attributable to high food grain inflation, which reduced the margin by 335 basis points.

Despite this, Radico Khaitan maintained its gross margin through continual premiumisation and price increases in the IMFL business on a quarterly (QoQ) basis. Although prices for certain packaging materials have lately decreased, the company remains concerned about the patterns in grain and ENA prices, which remain volatile.

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