Liquor-maker Radico Khaitan's Profit Declines to 22.63% in Q3 Quarter

Indian liquor-maker Radico Khaitan Ltd on Tuesday reported a decline of 22.63 per cent in its consolidated net profit at Rs 61.22 crore in the third quarter ended December 2022, on account of commodity inflation impacting margins.

The company had posted a consolidated net profit of Rs 79.13 crore in the October- December quarter a year ago, Radico Khaitan said in a BSE filing.

Its revenue from operations was down 3.97 per cent to Rs 3,166.19 crore during the quarter under review as against Rs 3,297.24 crore in the corresponding quarter of the previous fiscal.

“Radico Khaitan has delivered another quarter of a consistent financial performance driven by a strong premium volume growth, a robust brand portfolio and excellent execution capabilities. During January 2023, we have successfully commissioned the dual feed plant at Rampur within the committed capex estimate and timelines. As we continue to make strides on our premiumization journey, the availability of additional grain based ENA will strengthen our value proposition,” shared Dr. Lalit Khaitan, Chairman and Managing Director.

The group has recently received price increases in the non-IMFL business in the state of UP which will hold them in good stead in the next fiscal year.

Radico Khaitan's total expenses were at Rs 3,092.49 crore, down 3.30 per cent in the third quarter of FY23, as against Rs 3,198.30 crore a year ago.

Its sales volume of total Indian-made foreign liquor (IMFL) was flat during the quarter at 6.99 million cases.

“Driven by operational excellence and consumer-centric approach, our premiumization strategy continues to deliver strong results. During the nine months of FY2023, our Prestige & Above category brands have shown robust growth including core brands such as Magic Moments Vodka and Morpheus Brandy where YTD volumes have surpassed the full year numbers of FY2022,” added Abhishek Khaitan, Managing Director.