Radico Khaitan reported a 22.63 per cent drop in total net profit to Rs 61.22 crore in the third quarter ended December 2022, owing to commodities prices affecting margins.
Radico Khaitan reported a consolidated net profit of Rs 79.13 crore in the October-December quarter a year earlier in a regulatory filing.
Its income from operations fell 3.97 per cent to Rs 3,166.19 crore in the current fiscal quarter, compared to Rs 3,297.24 crore in the previous fiscal quarter.
Radico Khaitan’s total costs were Rs 3,092.49 crore in the third quarter of FY23, a 3.30 per cent decrease from Rs 3,198.30 crore the previous year.
Its overall Indian-made foreign liquor (IMFL) sales volume was unchanged for the quarter, at 6.99 million cases.
Prestige and above brand volume was 2.59 million cases, up 14.1 per cent in this sector. Its net sales from this category increased by 19.1 per cent to Rs 402.5 crore.
“On a Y-o-Y basis, continued commodity inflation resulted in gross margin compression, particularly in the non-IMFL business where we have recently received price increases. Given a favourable product mix change, the impact of cost-push on the gross margin of the IMFL business was mitigated to a large extent,” said Radico Khaitan in its earnings statement.
Although on a sequential basis, it has experienced a stabilising trend in certain commodities, the overall commodity scenario still remains volatile, it added.
Chairman & Managing Director Lalit Khaitan said: “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.”
In terms of the future, he stated that the corporation is dedicated to a long-term strategy of premiumization.
“While the raw material scenario still remains volatile, we have seen early signs of deflation in certain commodities. Furthermore, we have recently received price increases in the non-IMFL business in the state of UP which will hold us in good stead in the next fiscal year.” he said
Radio Khaitan shares closed at Rs 1,118.90 on the BSE on Tuesday, down 1.83 per cent from the previous close.
