Radico Khaitan Q2 net profit dips 2.15% to Rs 73.05 cr; sales up 11.8% to Rs 3,077.18 cr

Liquor maker Radico Khaitan Ltd on Tuesday reported a 2.15 per cent decline in its consolidated net profit at Rs 73.05 crore for the second quarter ended September 2021, as cost inflation had an adverse impact on the margins.

The company had posted a consolidated net profit of Rs 74.66 crore in the July-September quarter a year ago, Radico Khaitan said in a regulatory filing.

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However, its revenue from operations was up 11.77 per cent to Rs 3,077.18 crore during the quarter under review, as against Rs 2,752.98 crore in the corresponding quarter of the previous fiscal.

Radico Khaitan, earlier known as Rampur Distillery Company, posted total expenses of Rs 2,984.95 crore during the September quarter this year, as against Rs 2,664.66 crore a year ago, up 12.01 per cent.

"During Q2 FY2022, we delivered a robust volume growth led by Prestige & Above category brands. Our new brand launches are expected to accentuate the premium volumes in the coming years."

"Although the operating environment has improved significantly on a quarter-on-quarter basis, we have seen unprecedented levels of input cost inflation which has impacted the profit margins, particularly for our non-IMFL business," Radico Khaitan Managing Director Abhishek Khaitan said.

Its sales volume of total Indian-made foreign liquor (IMFL) was up 7.1 per cent during the quarter to 6.47 million cases.

"We strongly believe that this is a temporary phenomenon and given our focus on premiumization, margins trajectory shall improve. During this period of uncertainty, we continue to focus on sustainable, premium volume growth and work alongside the supply chain to minimize the impact of input cost increases," he added.

Shares of Radico Khaitan Ltd closed at Rs 1,071.85, down 1.76 per cent from the previous close on the BSE.