Radico Khaitan (RADICO) Q4 01/02 earnings summary

Executive summary

• FY ended Mar. 31, 2002 covered 15 months versus 12 months in the prior period; sales from Rampur operations reached Rs. 5,190.43m and PAT Rs. 154.03m.

• Sales and other income including tie-up units totaled Rs. 6,150m; strategy centered on brand expansion, distribution reach, operating efficiency and entry into imported wine and beer.

Financial highlights

• Rampur sales and other income rose to Rs. 5,190.43m from Rs. 1,955.59m; reported growth was 165%, with the 15-month period and excise-duty policy change limiting comparability.

• Profit before depreciation and tax was Rs. 216.68m; PBT Rs. 171.53m; PAT Rs. 154.03m versus Rs. 140.82m, Rs. 114.67m and Rs. 97.67m, respectively.

• Proposed dividend was 20%, or Rs. 2 per fully paid share, equivalent to 16% annualized versus 14% in the prior year.

Outlook and guidance

• Current-year outlook was described as promising, with plans to open new markets, expand the product range and continue growth at a satisfactory pace.

• Industry growth of 8–10% was considered reasonable; consolidation was expected as smaller and regional players exit over time.