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- Utilization levels at 90% in FY23 for ENA production.
- Power & Fuel cost reduced by 27% QOQ.
- Consistent focus on reducing debt. Average cost of debt is 4%.
- ROE/ROCE of 14%/17% respectively.
- Capex: The company has planned additional capacity expansion in West Bengal as well as Jharkhand and is expected to be commissioned by the end of Q1 FY24. These additions would take the total installed capacity to 905 KLPD. Another capacity in Orissa is targeted to start construction by Q3 FY24 and would add 200 KLPD. The capex for this capacity is expected to be ~₹160 crore, out of which ₹120 crore will be funded by debt and the balance through internal accruals. The borrowing cost on the debt would be ~4% as it would receive interest rate subsidies from banks. The project in Uttar Pradesh has begun construction at Lakhimpur Kheri and anticipates to start rolling out its brands by the end of Q3 FY24.
- Guidance: Share of premium segment in in revenue is targeted towards 20%. Planning to enter Punjab, UP & Jharkhand Markets with Premium segment products. A premium rum is expected to launch by Q2 FY24 and the management envisages to enter into the single malt segment by the end of FY24. It also plans to expand the variants of its flagship product of Craft gin. EBITDA margin of 15% targeted excluding IMFL segment for the next 1-2 quarters. Manufacturing Capacity Utilization in Haryana to be 95% in FY24. The company is not expected to hit 1 million cases in the IMFL segment this fiscal year, but triple-digit growth is expected.
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