Latest news with #8PMPremiumBlack
Business Standard
07-05-2025
- Business
- Business Standard
Radico Khaitan Q4 PAT climbs 60% YoY to Rs 91 cr
Radico Khaitan reported a 59.76% jump in standalone net profit to Rs 90.71 crore in Q4 FY25 as compared with Rs 56.78 crore in Q4 FY24. Revenue from operations (excluding excise duty) jumped 20.9% YoY to Rs 1,304.08 crore during the quarter ended 31st March 2025. Profit before tax (PBT) climbed 58.8% YoY to Rs 121.50 crore in Q4 FY25. EBITDA stood at Rs 174.5 crore, recording the growth of 38.9%, as compared with Rs 125.6 crore posted in corresponding quarter last year. EBITDA margin improved to 13.4% in Q4 FY25 as against 11.6% in Q4 FY24. Total Indian made foreign liquor (IMFL) volume increased 27.9% to 9.15 million cases in Q4 FY25 from 7.16 million cases in Q4 FY24. Prestige & above volume jumped 16.8% to 3.40 million cases in Q4 FY25, up 16.8% YoY. During the quarter, prestige & above brands net sales rose 22.1% to Rs 614.8 crore as against Rs 503.5 crore recorded in same period last year. During Q4 FY2025, A&SP was 7.6% of IMFL sales compared to 7.4% in Q4 FY2024. On a quarterly basis, the amount may vary but the company expects to maintain A&SP spend around 6% to 8% of our IMFL revenues to be able to drive the sales momentum. Gross margin during the quarter was 43.5% compared to 41.0% in Q4 FY2024. Gross Margin improved both on Yo-Y and Q-o-Q basis due to the ongoing premiumization in the IMFL business coupled with a relatively stable raw material scenario. The company is optimistic that the pricing scenario for ENA and grains will remain stable going forward during FY2026. Further, moderating food and retail inflation shall support overall consumption. Lalit Khaitan, chairman & managing director said: Over the past few years, our focus on expanded backward integration, enhanced distribution capabilities, a strong innovation pipeline, and impactful consumer engagement has propelled our growth. With the Indian spirits industry witnessing an increasing shift toward premium and luxury brands, we are well-positioned to capitalize on long-term opportunities in this evolving market. Our growth this year was broad-based across both brands and geographies. The first half of the year was marked by industry and regulatory headwinds that impacted volume growth in the regular category. Additionally, rising grain and ENA prices posed further challenges. Despite this, we delivered strong volume growth and upheld our margin expansion commitments. Continuing our commitment to innovation, we introduced 8PM Premium Black in Q1 FY26 with a bold new look, designed to enhance brand imagery while highlighting its unique product story, crafted around the harmony of eight select notes. As we move forward, the first quarter of FY26 will see the launch of two luxury brandsprojects in development for the past two years. These launches represent a significant leap in Radico Khaitans premiumization journey, reaffirming our belief that the best is yet to come. Additionally, we will enter the super-premium whisky segment within the first half of the year, strengthening our footprint in high-growth categories. Looking ahead, we anticipate strong double-digit growth in the Prestige & Above category, enhanced profitability, a continued emphasis on cash flow generation, and long-term value creation for our shareholders. Radico Khaitan is among the oldest and one of the largest manufacturers of Indian-made foreign liquor (IMFL) in India. It is one of the few companies in India to have developed its entire brand portfolio organically. The counter declined 3.47% to Rs 2,446.10 on the BSE.
Mint
05-05-2025
- Business
- Mint
Up 200% in 3 years, 700% in 5 years! ICICI Sec sees another 19% upside in this liquor stock. Do you own it?
Radico Khaitan, one of the most recognized IMFL (Indian Made Foreign Liquor) brands in India, saw its share price jump 4% in intraday trade on Monday, May 5, reaching ₹ 2,545 apiece after domestic brokerage firm ICICI Securities initiated coverage on the stock with a 'buy' rating and a target price of ₹ 2,900 apiece. This implies an upside potential of around 19% from the stock's previous closing price. The stock has already delivered a stellar run in recent years, gaining nearly 200% in the last three years, 700% over the last five years, and over 2,000% in the past decade, driven by a steady rise in demand for premium and luxury alcohol brands. Despite the stellar rise in Radico Khaitan's stock price, ICICI Securities remains optimistic, citing the steady increase in demand for white spirits—a segment where Radico holds strong leadership. The company commands a 60% market share in the vodka segment and a 50% share in the luxury gin category. The brokerage expects strong double-digit growth in white spirits, especially in premium offerings, driven by rising preference among younger consumers and the versatility of white spirits for cocktail-based, on-trade consumption. In addition, the company is expanding its whisky portfolio with the launch of Indian single malt offerings. Over the past decade, Radico has launched several successful products in this segment. It has also revamped existing brands like 8PM Premium Black and After Dark in the lower and mid-prestige segments with modern packaging, driving strong growth over the past two years. Over the past 15 years, Radico has built a strong premium portfolio, supported by consumer demand and around 25 new brand launches. Its performance in the P&A (Prestige and Above) segment has driven a 13% volume CAGR over FY19–24, compared to a 3% volume decline in the regular segment, as per the brokerage. ICICI Securities expects Radico Khaitan's margin improvement trajectory to continue, projecting a 200 basis point (bps) margin expansion between FY25 and FY27. Over FY22–24, margins were under pressure due to steep inflation in Extra Neutral Alcohol (ENA) and glass prices. However, in the first nine months of FY25, the company saw a 130 bps year-on-year margin recovery—driven by premiumization, easing glass-price inflation, and price hikes in key states. Looking ahead, the growing focus on launching new products in the P&A segment is expected to further increase its contribution. This will be aided by Radico expanding into more profitable, P&A brand-heavy states. The contribution from P&A brands is projected to increase to 48% in volume and 78% in value by FY27E. Furthermore, the company's investment in backward integration is expected to support long-term margin expansion. ICICI Securities expects return ratios to improve, with RoE and RoCE rising from 11% and 10%, respectively, to 20% and 18% over FY24–27E. The brokerage remains optimistic about Radico Khaitan's execution capabilities and its ability to identify and launch successful brands in untapped ("white space") segments—justifying its premium valuation. ICICI Securities projects revenue and earnings CAGRs of 15% and 39%, respectively, supported by 15% volume growth in the P&A segment and 4% in the popular segment. The growing contribution of P&A brands (currently at 39% of volume in FY24) and declining commodity prices are expected to improve operating margins by 220 bps, reaching 16.3% by FY27E. Strong execution, premiumization, and improving operating metrics are expected to help the company maintain its premium valuation in the coming years. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 5 May 2025, 01:52 PM IST
