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For the September quarter, Tilaknagar Industries reported a 5.8% year-on-year increase in revenue, which reached Rs 374.8 crore.
The winter season is traditionally a strong period for liquor consumption.
Shares of Tilaknagar Industries soared to a record high of Rs 341.9 on Tuesday, November 5, marking a significant 17% increase in a single trading session. The spike in stock price followed the company’s impressive financial performance for the September quarter and the optimistic projections set by management, including an anticipated revenue of over Rs 1,300 crore for the Financial Year 2024-25.
In an exclusive interview with CNBC-TV18, Amit Dahanukar, Managing Director of Tilaknagar Industries, expressed confidence that the second half of the fiscal year will see stronger performance, driven by robust sales growth. He highlighted a particular focus on the company’s stronghold markets in Andhra Pradesh and Telangana, where Tilaknagar generates around half of its total sales. Dahanukar also shared that the company has seen a 10% increase in store count in Andhra Pradesh, further solidifying its foothold in the region.
Financial Performance Shows Strong Growth
For the September quarter, Tilaknagar Industries reported a 5.8% year-on-year increase in revenue, which reached Rs 374.8 crore. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by 39.1%, reaching Rs 66 crore. EBITDA margins also saw a notable improvement, climbing over 400 basis points to 17.6%, compared to 13.4% during the same period last year.
Dahanukar remains optimistic that the company can sustain a margin of around 15.5% for the full fiscal year, excluding any one-time incentives or adjustments. The strong financial results were bolstered by a 3.1% increase in sales volumes, with the company shipping 31 lakh cases of its various liquor products during the quarter. This volume growth, combined with a reduction in costs, contributed to a remarkable 57% year-on-year rise in profits.
Stock Performance: A Stellar 2024
Tilaknagar’s stock has been on an impressive upward trajectory in 2024, having already gained 41% year-to-date. This marks the latest chapter in a string of successful years for the company’s stock, which has consistently delivered strong returns since 2020. In the last four years, the stock has posted annual gains of 123% in 2020, 213% in 2021, 18% in 2022, and 118% in 2023, attracting attention from both retail and institutional investors.
Expanding Beyond Traditional Markets
While Andhra Pradesh and Telangana remain the company’s key markets, Dahanukar indicated that Tilaknagar is exploring opportunities to expand its footprint into other regions of India. The company’s focus is on increasing brand visibility and diversifying its consumer base, in line with its overall growth strategy.
A Diverse Portfolio of Liquor Brands
Tilaknagar Industries, which was founded in 1933 as The Maharashtra Sugar Mills Ltd, evolved into one of the leading manufacturers of Indian Made Foreign Liquor (IMFL) and Extra Natural Alcohol. With a portfolio spanning several liquor categories, the company boasts a strong presence in the market and exports to various regions including Asia, Africa, the Middle East, and Europe.
Some of Tilaknagar’s key brands include:
- Mansion House Brandy: A top-selling premium brandy.
- Courier Napoleon Brandy: A widely recognised and popular brandy.
- Senate Royale Whisky: A high-end whisky catering to premium consumers.
- Madiraa Rum: A renowned rum brand.
- Blue Lagoon Gin: A well-known gin brand.
The company’s flagship production facility is based in Shrirampur, Ahmednagar district, Maharashtra, where it operates with a capacity of 150 kilolitres per day (KLPD). In line with its innovative approach, Tilaknagar recently launched Mansion House Green Apple Flandy, a flavoured brandy variant that quickly captured 20% market share within the first quarter of its launch.
With an established track record of growth, a strong portfolio of products, and a commitment to expanding its market presence, Tilaknagar Industries is well-positioned to continue its upward trajectory. The company’s strong performance, both in terms of financials and stock market returns, underscores its resilience and ability to adapt to changing market conditions, making it one of the more exciting players in the alcoholic beverage industry.
As the winter season approaches, traditionally a strong period for liquor consumption, the company’s prospects appear bright, signaling potential for further growth in the coming months. Investors and market analysts alike will be closely watching Tilaknagar’s next steps as it looks to build on its momentum.
