Alcohol stock held by Mukul Agarwal’s, specializing in the manufacturing of industrial alcohol, Indian Made Foreign Liquor (IMFL), and country liquor, jumped 5 percent upon declaring Q3 results and generating profit with a 27 percent rise Year on Year (YoY)
Price action
With a market capitalization of Rs. 28,240 crores on Wednesday, the shares of Radico Khaitan Limited jumped 4.85 percent making a high of Rs. 2,213.25 per share compared to its previous closing price of Rs. 2,111.20 per share.
What Happened
Radico Khaitan Limited specializing in the manufacturing of industrial alcohol, Indian Made Foreign Liquor (IMFL), and country liquor has announced its Q3FY25 results
Its Total Income grew by 7 percent YoY from Rs. 4,166 Crores in Q3FY24 to Rs. 4,441.9 Crores in Q3FY25 and it grew by 143.6 percent QoQ from Rs. 3,907.7 Crores in Q2FY25 to Rs. 4,441.9 Crores in Q3FY25.
Its Net Profit rose 27 percent YoY from Rs. 75.1 Crores in Q3FY24 to Rs. 95.4 Crores in Q3FY25 and it rose by 18.3 percent QoQ from Rs. 80.6 Crores in Q2FY25 to Rs. 95.4 Crores in Q3FY25.
The earnings per share (EPS) for the quarter stood at Rs. 7.14, compared to Rs. 6.03 in the previous quarter and Rs. 5.62 in the same quarter last year.
Revenue from Operations (Net) grew by 11.5 percent YoY, Total IMFL volume increased by 15.3 percent whereas Prestige & Above category volume grew by 17.7 percent. Gross Margin during the quarter was 43.0 percent compared to 41.8 percent in Q3 FY2024 and 43.6 percent in Q2 FY2025.
Management Commentary
Dr. Lalit Khaitan, Chairman & Managing Director said: Despite challenges in overall consumption growth, the spirits industry in India has experienced strong momentum, particularly driven by premium brands. In this context, we have delivered an impressive operational performance in Q3 FY25.
Our premium brands have maintained their robust growth trajectory. We are confident in the medium to long-term potential of the Indian spirits industry and Radico Khaitan’s competitive growth prospects
Mr. Abhishek Khaitan, Managing Director said: Building on the strong momentum from the first half, Radico Khaitan achieved industry-leading IMFL volume growth of 15.3 percent year-over-year in Q3 FY25. We anticipate this strong momentum to continue in the near term.
Our existing premium brand sales and new product development pipeline remain robust. Luxury & Semi-Luxury brands crossed a net sales value of Rs. 100 Cr in Q3 FY25 and Rs. 250 Cr in 9M FY25. Reflecting the exceptional demand in the domestic as well as international markets, we expect these segments to cross the Rs. 500 Cr net sales mark in FY26.
About the Company
Radico Khaitan is a leading Indian manufacturer of alcoholic beverages, Known for its premium spirits, the company produces a variety of products, including whisky, rum, and vodka. It is one of the largest producers of Indian-made foreign liquor (IMFL).
Ace Investor
Ace Investor Mukul Agarwal holds a stake of 1.05 percent in the company which consists of 14,00,083 equity shares as of December, 2024
Written by Sridhar J
