Radico Khaitan Ltd., maker of the popular ‘Magic Moments’ brand of vodka, expects to deliver a double-digit premium volume growth in the financial year 2025.
Radico Khaitan said its total Indian Made Foreign Liquor (IMFL) volumes decreased by 2.5%, reaching 6.78 million cases for the September quarter.
Radico Khaitan recorded a strong performance in Prestige & Above ((P&A). Its P&A volumes increased by 12.6%, totaling 3.2 million cases. The firm’s P&A net sales grew by 18%, reaching ₹578 crore, with P&A contributing 75.7% to overall sales, up from 70%.
The liquor maker’s profit after tax rose by 24.4% year-on-year to ₹80.66 crore in Q2, compared to ₹64.83 crore in the same quarter a year ago.
Radico Khaitan’s gross margins slightly declined to 43.6% in Q2FY25 from 44.1% in Q2FY24. EBITDA grew 34.6% on-year to ₹163.18 crore in the quarter, up from ₹121.2 crore in Q2 of FY24.
In its earnings statement, Radico Khaitan noted that while gross margins were affected on-year due to significant food grain inflation, premiumisation in the IMFL business helped improve gross margins by 258 basis points quarter-on-quarter.
For the quarter, EBITDA margins improved to 14.6% from 13.1% in the corresponding quarter of last year.
The company’s finance costs surged by 50.9% to ₹18.82 crore in Q2FY25, up from ₹12.47 crore in Q2FY24.
Its total debt increased by 10.6% year-on-year to ₹815.24 crore in Q2FY25 from ₹737.08 crore in Q2FY24. The company attributed the rise in net debt primarily to cyclical inventory buildup.
Shares of Radico Khaitan Ltd. are currently trading 4.10% higher at ₹2,390.25 on Friday. The total market capitalisation of the company stood at ₹31,420 crore for the day.
Content retrieved from: https://www.cnbctv18.com/market/radico-khaitan-share-price-jumps-after-prestige-above-shines-strong-commentary-q2-results-19498943.htm.
