Q2 FY2025 Concall Highlights
Financial performance:
Achieved highest ever quarterly EBITDA in Q2 at Rs. 66 crs, YoY growth of 39.1%
EBITDA margin at 17.6%, 422 bps expansion YoY. Industrial Promotion Incentive by Maharashtra, Q1 was 5.56 cr, Q2 was 10.36 cr. Margin Expansion mainly due to cost optimization, premiumization not impacted improvement.
Profit after tax at Rs. 58 crs, YoY growth of 82%; driven by reduction in finance costs
Net debt free as of September 2024, with net cash Rs. 25 crs.
Guidance:
12 to 15% volume guidance on steady state basis.
Andhra Pradesh
AP has significant brandy drinking population.
Degrowth due to policy change.
Expect volume to grow significantly, as TI is leading player in state. 30 lakh cases industry, can be in 2 to 3 years, it can be 40 lakh cases.
AP is currently 30% of sales.
Retail going private makes market consumer driven. It benefits TI as company have good franchise. Industry will increase and company will take bigger pie. 10% shops will increase. Private players will make sure they are stocked, customers are satisfied etc. Expect overall improvement that will help to grow.
Telangana:
Overdue position is now 10 weeks. Normal is 8 to 9 weeks. Highest was 18 to 19 weeks.
IMFL Pricing committee will soon decide pricing.
Total receivable is 130 cr. Overdue is 80 cr.
Karnataka
Reduce duty, increase in volume. MRP goes down have impact positive impact.
Assam & North East:
Assam is very receptive to new product that is why Mansion House Whisky is launched in Assam. It is semi premium segment, comparable brands Royal Stage, Royal Challenge. It is priced at 560 rs. For 750ml bottle. Assam is having large market for this segment.
Upfront investment, working capital is lower compared to others.
Others:
Luxury foray is few week away. It will have incremental margin expansion, which we are not guiding as of now. One more launch after 6 months.
Easing of raw material and packaging cost.
Expect further expansion of margin.
Green Apple Flandy have very good response. It will not be millionaire brand this year. Flavoured spirts is fastest growing category in IMFL.
Tax can be back from Q1 FY2026.
Brandy is more than 90% of sales. Visio is to have 20% from Non Brandy by 2030.
CAPEX:
Maintenance CAPEX of 15 to 20 cr/year.
Distillery CAPEX not yet decided, recommission 100KLPD plant, which will cost 45 cr. If new distillery build it may cost 100 to 120 cr.
Strategic Investments:
Spaceman Spirits Lab Pvt. Ltd., the makers of ‘Samsara Gin’ and ‘Sitara Rum’.
Will start selling their brand in select state and internationally.
FY 2024 Revenue only 20 cr. It can be 100% for next two years.
TI will manufacture and sell in agreed state, where revenue and cost will come to TI books and will pay royalty to Spaceman spirits.
Samsara Gin and Sitara Gin goes along with TI’s luxury brand gives opportunity as alcoholic beverages is distribution driven market.
Round the Cocktails Pvt. Ltd., the makers of ‘Bartisans’, a ‘Ready to Pour’ cocktail mixers brand.
High brand recall, strong unit economics. Company is in non-alcoholic beverages.
80% sale online, they are digital fist company.
Expect significant growth.
It has no restriction on marketing due to non-alcoholic beverages.
There will be collaboration between Bartisans and Tilaknagar Industries.
Incredible spirits: It was small investment at 1cr. Sell this stake at cost in October.
Investor Presentation:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/0f22af78-57a7-40d1-8c67-f926584c0c9c.pdf
Disclosure: Invested
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