Radico Khaitan sees strong Q1 trading

Radico Khaitan sees strong Q1 trading

Radico Khaitan has reinforced the rosy picture of India's spirits market by reporting a jump in net profits and a sharp rise in sales for its fiscal first quarter.

Net sales rose by 23% to reach INR2.34bn (US$50m) for the three months to the end of June, compared to INR1.9bn in the same period of last year, Radico Khaitan said yesterday (27 July).

Net profits for the quarter leapt by almost 50%, to reach INR160.5m versus INR107m a year previously.

Operating profits increased to INR272m for the three months, compared to INR241m last year, said the group, which operates a joint venture in India with Diageo.

Its figures add further evidence that India's spirits market has ridden out the global economic downturn, following strong quarterly results from United Spirits last week.

In May this year, the Indian Government cleared Diageo to take full control of its 50-50 venture with Radico Khaitan. Diageo confirmed to just-drinks at the time that the two firms were in talks about "the future of the joint venture".