Alcohol stock primarily involved in the manufacturing and sale of Indian-made foreign liquor, extra-neutral alcohol, and many more jumped upto 18 percent in the day’s trade upon declaring robust Q2FY25 results, with a 57 percent jump in Net Profits and turning net debt-free.
Price Action
With a market capitalization of Rs. 6,522 Crores, the shares of Tilaknagar Industries Limited were trading at Rs. 338.50 per equity share, up 16 percent from its previous day’s close price of Rs. 291.35.
Q2FY25 Results
Its Revenue from operations grew by 10 percent YoY from Rs. 750.18 Crores in Q2FY24 to Rs. 823.32 Crores in Q2FY25 and it grew by 24 percent QoQ from Rs. 664.76 Crores in Q1FY25 to Rs. 823.32 Crores in Q2FY25.
Its Net Profit grew by 57 percent YoY from Rs. 37.04 Crores in Q2FY24 to Rs. 58.23 Crores in Q2FY25 and it grew by 45 percent QoQ from Rs. 40.08 Crores in Q1FY25 to Rs. 58.23 Crores in Q2FY25. Its Net Profit Margin increased from 4.93 percent in Q2FY24 to 7.04 percent in Q2FY25.
Recent Block
Foreign Institutional Investor BOFA Securities Europe solf sold 4 Lakh equity shares of Tilaknagar Industries Limited at an average price of Rs. 287.80 for a consideration of ~Rs. 11.51 Crores and the same was picked by Societe Generale.
Management Message
Tilaknagar Industries Limited has turned net debt-free as of September 2024. From a peak debt of more than Rs. 1,100 crore in March 2019 to achieving net debt-free status, we have come a long way. This transformation was achieved through a combination of financial prudence and achieving industry-beating profitable growth.
From a Q2 business perspective, we have delivered our highest-ever EBITDA at Rs. 66 crore. Our margins expanded on the back of a superior brand mix as well as cost optimization initiatives. All this despite subdued volume growth on account of the transitioning of RTM in our key state of Andhra Pradesh in Q2.
With retail going private in AP from mid-October onwards, we expect to continue with our industry-beating growth trajectory; achieved through a combination of doubling down on our market share gains from our brandy portfolio as well as new product launches across categories.
The worst of the inflationary cycle seems behind us, and we expect to grow our profitability despite increasing investments in A&SP, providing meaningful ‘Share of Voice’ to brandy as a category
About the Company
Tilaknagar Industries is an alcoholic beverage company, it is primarily involved in the manufacturing and sale of Indian-made foreign liquor and extra-neutral alcohol. It has a diverse portfolio of brands in categories of liquor like whisky, brandy, rum, vodka, and gin. It continues to be the 3rd largest highest Prestige & Above IMFL player in Telangana and Karnataka in Q2 FY25
As of March 2024, Tilaknagr Industries has 19 manufacturing units across 12 states in India with 15+ brands across products. 94 percent of its revenue comes from the sale of Brandy and 86 percent of its sales come from South India. Its famous brand Mansion House continues to be the largest-selling brandy brand in India.
Written by: Bharath K.S
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