Tilaknagar Industries Q2 Profit Doubles to Rs 37 Crore

New Delhi, Nov 3 (PTI) Leading Indian-Made Foreign Liquor (IMFL) manufacturer Tilaknagar Industries Ltd on Friday reported an over two-fold increase in its consolidated net profit to Rs 37.04 crore for the second quarter ended on September 2023.

The company had reported a net profit of Rs 13.88 crore in the July-September period a year ago, Tilaknagar Industries Ltd said in a regulatory filing.

Its revenue from operations grew 25.85 per cent to Rs 750.18 crore during the period under review as against Rs 596.05 crore in the year-ago period.

Total expenses of the company, which owns brands such as Mansion House Brandy, Courrier Napoleon Brandy, Mansion House Gold Whisky and Blue Lagoon Gin, in the September quarter stood at Rs 718.74 crore, up 23.33 per cent.

Tilaknagar Industries' total income in the September quarter rose 25.81 per cent to Rs 750.66 crore.

Commenting on the result, Tilaknagar Industries Chairman and Managing Director Amit Dahanukar said: "Despite an increase in the price of Extra Neutral Alcohol and enhanced investment in marketing and brand building initiatives in Q2, our EBITDA margins expanded year-on-year to 13.4 per cent compared to 11.4 per cent in Q2 FY23."

"Our business has been resilient and we are now observing softening of packing material prices which will have a further favourable impact on our margins," he said.

The company's sales volumes increased to 28.5 lakh cases as against 24.3 lakh cases in the same period last year, a company's earning statement said.

On the debt, it said: "As on September 30, 2023, Tilaknagar Industries net debt stood at Rs 141 crore, down by Rs 128 crore from Rs 269 crore in the corresponding period a year ago. The company's net debt has come down by Rs 350 crore over the past two-and-a-half years."

In the September quarter, the company completed the refinancing of its debt with Edelweiss Asset Reconstruction Company.

It refinanced the Rs 176 crore debt with a fresh term loan of Rs 130 crore raised from Kotak Bank.

"This move will give the company the flexibility to better manage its cash flows, without significantly increasing the interest burden," the company said, adding, it "expects to be near net debt-free by March 2025."

Shares of Tilaknagar Industries Ltd on Friday remained unchanged at Rs 242.40 apiece on the BSE.