27% PAT margin translates to 36% PBT margin assuming a 25% effective tax rate
Q4FY24 which had higher proportion of Indri sales in the overall distillery segment had a 31% EBIT margin. Even if you allocate all of interest & other cost to distillery segment, the PBT % would have come up as 29% for the distillery segment.
Now this 29% is composed of low margin country liquor and ethanol sales and high-margin Indri sales. It’s anyone’s guess as to what margin Indri would have given that country liquor would be mid-teens at best.
This is because in FY22, EBIT for distillery segment was 20% and at that point of time, Indri + Kamet + blended malt whiskeys had a combined sales of 18k cases in the full year. For reference, Q1FY25, Indri alone has done 25k cases.
Fair to say that the standalone Indri numbers would be substantially higher given the distillery segment is a mix of low margin country liquor, ethanol sales etc vs high margin Indri
Another way to look at this is 70%+ gross margins. Take another 25% for SG&A and all other kinds of opex. That gives you 45% EBITDA. Interest & Depreciation – take another 10% worst case. 35% PBT and you have 27% PAT after assuming 25% tax rate.
In my practical view though, gross margins would also inch up as special editions of Indri gain traction. They sell at nearly 2x price point, which means gross margins may be substantially higher for them.
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