Ranvir’s Portfolio

Radico Khaitan –

Q3 results and concall highlights –

Revenues – 1160 vs 792 cr, up 46 pc
Gross profit – 485 vs 327 cr, up 48 pc
EBITDA – 142 vs 96 cr, up 48 pc
PAT – 74 vs 57 cr, up 30 pc ( due much higher interest and depreciation costs )

Revenue break up –

IMFL –

Prestige and Above brands – 519 vs 402 cr, up 29 pc
Regular brands ( regular 8 PM and below ) – 199 vs 225 cr, down 11 pc

Non IMFL – 431 vs 157 cr, up 174 pc ( due to full capacity utilisation of Sitapur plant resulting in greater sales of country liquor )

Aim to maintain advertising and sales promotion spends @ 6-8 pc of company’s revenues

Net Debt ( minus Cash ) @ 669 cr, down by 101 cr from Sep 23 levels

Rampur Single malt – now available in 14 states in India

Jaisalmer Gin – now available in 20 states in India

Royal Ranthambore premium Whisky – now available in 19 states in India

Magic moments Vodka – commanding 59 pc Mkt share in Vodka Mkt in India. Launched a new variant -Remix Pink in Q3

8 PM premium – crossed 3 million cases within 3 yrs of launch. Growing strongly

Morpheus Brandy – commanding 59 pc mkt share in Brandy Mkt in India

New Launch – Spirit of Victory 1999 – in Luxury category ( like Rampur, priced at > Rs 5000/bottle )

Witnessing high inflation in the Grain prices ( a key RM )

The success of Magic Moments, 8 PM premium and Morpheus is giving them a lot of strength in retail trade to push luxury brands like – Jaisalmer, Rampur, Ranthambhore

See pressure to continue in the regular brands in Q4 as well. Prestige and Above should continue to grow. Also, the company’s focus is skewed towards prestige and above brands

Likely to continue to sell 430-450 cr kind of non-IMFL sales for some time to come. This is a low EBITDA kind of business with margins @ 5-6 pc. As the prestige and above sales ramp up over time, company will divert the Sitapur plant’s output towards making Prestige and Above brands away from Non-IMFL business. This is a gradual process

Aim to be debt free in 2 yrs. Most of the heavy capex is behind them

As the inflationary pressures ease, the profitability and volumes of regular brands should improve in next FY

Company’s Mkt share in spirits in fast growing UP mkt is a whopping 28 pc

In 3-5 yrs, aiming for 55-60 pc of volumes and 80 pc of sales coming from prestige and above category

Looking at new launches in future to fill portfolio gaps… like for eg – brands opposite BP, Royal Stag etc

Disc: holding from lower levels, stock continues to command expensive valuations, will add only on steep falls, biased, not SEBI registered