Radico Khaitan Ltd - 532497 - Quarterly Financial Results For The Quarter Ended 31St December 2019
Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31st December 2019, as approved by the Board of Directors at its Meeting held on Thursday, 23rd January 2020, along with the Limited Review Report by the Statutory Auditors of the Company on the said Results. RADICO KHAITAN LTD. - 532497 - The Outcome Of The Board Meeting Held On 23Rd Jan 2019 Thursday At 12:00 Noon.
Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31st December 2019, as approved by the Board of Directors at its Meeting held on Thursday, 23rd January 2020, along with the Limited Review Report by the Statutory Auditors of the Company on the said Results. RADICO KHAITAN LTD. - 532497 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Q3FY 2020 Earning Call Invitation Stock trading call: Buy Radico Khaitan
The stock of Radico Khaitan was in the limelight last week. It decisively breached a significant medium-term resistance at 332 last Monday by gain Radico Khaitan Ltd - 532497 - Board Meeting Intimation for Board Meeting To Be Held On Thursday, 23Rd January 2020.
RADICO KHAITAN LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 23/01/2020 ,inter alia, to consider and approve The Agenda of the Meeting will include an item for taking on record the Unaudited Financial Results (Standalone & Consolidated) for the quarter and nine months ended 31st December 2019 Radico Khaitan Ltd - 532497 - Announcement Under Regulation 74(5) Of The SEBI (Depositories And Participants) Regulations, 2018 For The Quarter Ended December 31, 2019.
Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2019. Radico Khaitan Ltd - 532497 - Statement Of Investor Complaints For The Quarter Ended December 2019
No.of Investor complaints pending at the beginning of the quarter No.of Investor complaints received during the quarter No.of Investor complaints disposed of during the quarter No.of Investor complaints unresolved at the end of the quarter 0211 Name of the Signatory :- Amit ManchandaDesignation :- Company Secretary and Compliance Officer
As Indian spirits lift, Radico Khaitan sees margins jump
by Suhani Adilabadkar After being a major bulk spirits supplier and bottler to other spirit manufacturers for decades, Radico Khaitan launched its own label, 8PM whisky in 1997. The company started branded IMFL division the same year and within the first year of its launch, 8PM whisky became a millionaire brand. Currently a market leader in the vodka segment, Radico has a strong premium brand portfolio constituting Morpheus, After Dark whisky, 1965 rum, Magic Moments Verve and the recently launched Electra vodka. Radico has three distilleries in Rampur, strategically located in Uttar Pradesh, one of the largest sugarcane producing states in India and two operating joint ventures with Radico NV Distilleries (RNV) in Aurangabad (Maharashtra) with a total capacity of 157 mn litres. Radico’s revenue break up constitutes 40% of its prestige/premium brands, 40% regular brands and 20% non IMFL business. Quick Takes In first half of FY19, while the industry reported 3% growth, Radico rode high with its volumes growing at 10.5%. Radico has four millionaire brands, 8PM whisky, Contessa rum, Old Admiral brandy and Magic Moments vodka. Magic Moments is ranked the 11th largest vodka by volume globally with 56% market share in India. Revenue jumped 10% YoY and PAT grew 59% YoY reported at Rs. 79 crore in Q2FY20. September Quarter FY20 saw growth despite overall slowdown Radico reported robust growth in the September quarter FY20 amidst an overall consumption slowdown. The company reported 10.9% volume growth led by Prestige. Revenue from operations increased 10% at Rs. 570 crore against Rs. 518 crore same period the previous year. Operating profit for the quarter stood at Rs. 87 crore compared to Rs. 92 crore in the corresponding September quarter FY19, with margin coming out at 15.18% against 17.71% in Q2FY19. A decline in margins by 253 bps YoY is mainly attributed to higher cost of glass bottle prices and 25% YoY increase in ENA (raw material) prices in Q2 FY20. Purchase of alcohol from third parties for manufacturing country liquor due to restricted capacity at its Rampur plant also impacted margins during the September quarter. PAT stood at Rs. 79 crore in Q2FY20 against Rs. 50 crore same period previous year rising 59% YoY and 43% sequentially. Commenting on the September quarter results, Mr. Abhishek Khaitan, MD, Radico Khaitan had said, “Given the improved monsoon and various initiatives undertaken by the government, we expect consumer sentiment to pick up in the coming quarters. With the ongoing product mix changes and price increases, we are confident about maintaining a long-term margin expansion trajectory along with increased operating cash flows”. A lift for Indian spirits After protracted sluggishness over three years, the Indian spirits industry began to recover in FY18. The India liquor industry is segmented into IMFL (Indian made foreign liquor) constituting whisky, brandy, rum, vodka, gin and non IMFL mainly unbranded country liquor. Whisky dominates the Indian spirits industry, contributing roughly 60% of sales volumes to the IMFL segment followed by brandy and rum together making up the brown spirits segment of IMFL. Vodka and gin constitute the white spirits constituting about 4% of the entire IMFL basket. Though whisky rules the roost in the Indian landscape, vodka popularity is increasing among younger generation and women, and vodka’s premium and super premium growth has been higher and faster than the entire IMFL segment which grew 2% over the past 5 years. Vodka segment on an overall basis grew at a CAGR of 6% whereas its premium and super premium categories have grown at 10% and 15% respectively. India with its young demographic profile, rising disposable incomes, rapid urbanization, higher rural penetration and with 15 million entering drinking age every year, is one of the most lucrative alcohol markets globally. The Indian spirits industry is characterized by high entry barriers, dependent on surrogate advertising to create demand in a highly regulated environment and with legal taxation system varying across India from open markets in Maharashtra and UP to auction system in Punjab and Haryana, and where the state government itself is the wholesaler/distributor such as in Andhra Pradesh and Telangana. Stuck amidst regulatory control and volatility of raw material prices, liquor companies after soaring in FY18 were relatively subdued in FY19 and weak momentum continued in past six months impacted by floods in number of states, rising raw material (molasses and packing material) prices from H2FY19 and of course the overall consumption slowdown more evident in rural India. Among the top liquor companies in India, analysts are strongly positive on Radico Khaitan with its remarkable performance in FY19 aided by its premiumization strategy which the company has been spearheading over the past 10 years, carving a niche for itself in the rapidly growing vodka segment and successfully transforming itself from a bulk spirit manufacturer to a highly reputable IMFL player with a robust organically built branded portfolio. The company has launched 12 brands in the past one decade with 11 being in the premium category. Radico has four millionaire brands, 8PM whisky, Contessa rum, Old Admiral brandy and Magic Moments vodka, which sell more than a million cases a year and is the largest suppliers of branded IMFL to the canteen stores department (CSD). In first half of FY19, while the industry reported 3% growth, Radico rode high with its volumes growing at 10.5%. Radico, like the rest of its peer group has battled high regulatory pressures with respect to sale, distribution and low volumes in the industry, is striving towards premiumization over the ten years driving growth which is both profitable and sustainable for long term. After launching 8 PM whisky in the regular category in 1997, Radico launched Magic Moments in 2006, currently ranked the 11th largest vodka by volume globally with 56% market share in India. Later in 2009, premium brandy Morpheus Brandy was introduced currently boasting 56% market share in the premium brandy segment and another blockbuster, Magic Moments Verve, a super-premium vodka launched in 2012 to compete with Smirnoff has 20% market share in the premium vodka category. The premium branded list also includes Old Admiral Brandy, the 5th largest selling brandy worldwide, another star performer, Contessa Rum, the highest selling rum in Indian defence segment and 7th largest worldwide. The company introduced Rampur Indian Single Malt Whisky three years back and Jaisalmer Indian Craft Gin in November 2018. With respect to these two global luxury products, Mr. Abhishek Khaitan, said, “Rampur demand is more than what we can cater and in fact we have tripled our malt capacity and it has been commissioned only in this month. So, once the malt gets matured our volumes will increase and per case wise Rampur is very profitable. Now about Jaisalmer Indian Craft Gin, just in a matter of six months we are across 20 to 25 duty frees across the globe and the initial response we are getting is very good for the brand. It is also one of the highest priced gins globally”. Radico in the current quarter is rolling out 8PM Premium Black Whisky in another four states, taking the total number to 14 and also plans to launch another two premium brands in the next two years. This premiumization is not the sole driver for higher than industry growth and improving margins, higher realization in regular category is also contributing. Clarifying, Mr Khaitan said, “About three years back we had taken this path of profitable growth and not volume led growth, so we are selling a regular-brands only in those states where our contribution is high, which is now benefiting us. For instance, Kerala or certain southern states, we are not there in the regular segment because the contribution is very low. So that is the time we have exited those states, but where the regular brand contribution is high, we are concentrating and that is leading to this growth”. In simple words Radico is pursuing profitable growth rather than volumes for robust and sustainable growth. Radico aims to achieve volume growth of 15-16% for the premium segment and 6-7% in the regular space. On the margin front, Mr. Dilip Banthiya, CFO, Radico Khaitan said, “As we are improving our product mix, we expect the margin, which is consolidating this year to remain in 16% range and next year onwards it will be in expansion. So, we expect with our business model that our margins will be expanding around 100 to 125 basis points on an annual basis. By 2021-2022 we should be in the high teens”. Radico is expected to be debt free by 2021-2022. The company has slashed its debt from Rs. 947 crore in March 2016 to Rs. 355 crore in September 2019. Radico Khaitan Ltd - 532497 - Closure of Trading Window
This is to inform you that pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015 amended by SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018 and in compliance with Radico's Code of Conduct to regulate, monitor and report Insider Trading, the Trading Window for dealing in shares of the Company for all its Designated Persons and their immediate relatives will remain closed from Wednesday, 1st January 2020. The trading window will open after 48 hours from the announcement of the unaudited financial results of the Company for the 3rdquarter ended 31st December, 2019 to the Stock Exchanges. RADICO KHAITAN LTD. - 532497 - Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS
In compliance of the SEBI (Share Based Employee Benefits) Regulations 2014, kindly take on record that the ESOP Compensation Committee in its meeting held on 9th December 2019 has allotted 88,000 equity shares of Rs.2/- each to the eligible employees on exercise of stock options under the Employees Stock Option Scheme 2006 (ESOP) of the Company. The paid-up Equity Share Capital of the Company post allotment is 13,34,97,265 Equity Shares of Rs.2/- each aggregating Rs.26,69,94,530/-.