INDIA: Tilaknagar Industries Q1 profits boosted by new launches
- Q1 net profits jump 58% to INR173m
- Sales up 17.4% to INR1.8bn
- Operating profits up 25% to INR205m
- Q1 volumes up 28%
Tilaknagar Industries has benefited from new product launches in its first quarter after reporting a jump in profits and sales.
The Indian Made Foreign Liquor producer (IMFL) said today (7 August) that post-tax profits in the three months to the end of June jumped by 58% to INR173m, boosted by a VAT refund of INR123.7m.
Sales in the period rose by 17.4% to INR1.8bn, while pre-tax profits were up 25% to INR205m. Volumes in Q1 grew by 28%.
The company, whose 40-odd brands include Mansion House, Courrier Napoleon and Madira, pointed to a “healthy expansion” in all of Southern India's key markets and “sustained momentum” in expanding its footprint in the east of the country.
Sales by value were boosted by “higher penetration in existing and new markets along with benefits of new launches”, the company said. New initiatives included: Mansion House Silk - a premium brandy launched in Kerala; and Courrier Napoleon Green premium brandy extended to new markets such as Odisha.
Amit Dahanukar, Tilaknagar Industries' chairman & MD, said: “Our volumes witnessed a noteworthy growth, ahead of sector performance. This reinstates the success of our core approach: to add scale by leveraging the strengths of brands and distribution systems.”
He also noted that the groups exports and CSD brands are growing and “contributing to overall progress”.
Looking ahead, Dahanukar said it will invest in its sales and marketing, distribution network and expand its “brand footprint”, while brandy and rum will remain the “prime focus”.
But he warned that a hike in excises duties in Karnataka and new minimum wage laws in Kerala will have an impact.
Meanwhile, local reports, quoting unnamed sources, today suggested that Suntory and Pernod Ricard are among companies in talks to buy a 15-20% stake in Tilaknagar.
Shares in the Indian group were today trading up 16% at INR55.10.
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