INDIA: Radico Khaitan's Q3 profits leap

• Profits leap by 77%
• Sales up by 15% in Q3
• Core brands lead growth

India's second largest spirits group, Radico Khaitan, has reported a leap in net profits in its fiscal third quarter with strong demand for key brands.

Radico Khaitan said today (1 February) that net profits jumped by 77.7% for the three months to the end of December, to INR204.7m (US$4.5m). Operating profits, or EBITDA, increased by 14% on the same period of last year, to INR412m.

Strong demand for key brands drove net sales up by 15% for the three months, to INR3.63bn, said the group, which operates a joint venture with Diageo in India and is the country's second largest spirits producer by volume, behind Vijay Mallya's United Spirits.

Magic Moments vodka and 8pm whisky increased volume sales by 37% and 26% respectively for the quarter, said Radico. Contessa rum saw sales rise by 10%. In the first nine months of the group's fiscal year, meanwhile, Morpheus Brandy saw its volume sales quadruple.

In its outlook, the company said that it expects "further steady growth" for its core brands, with advertising spend as a percentage of sales set to remain at around 8%. The firm will launch After Dark premium whisky in "all the prominent states" in India during the fourth quarter, it added.

Net sales for the first nine months of the group's year increased by 17% to INR9.96bn. Nine-month EBITDA rose by 14.5% to INR1.12bn, while net profits jumped by 73% to INR553.7m.

In November last year, Radico confirmed to just-drinks that it was seeking more tie-ups in India with international drinks companies.

For the full results release, click here.