Radico Khaitan (RADICO) Q4 1999 earnings summary

Executive summary

• FY1999 sales and other income reached Rs 2,350.83 million, up 9.67% YoY; including tie-up unit sales, total sales were Rs 2,579.85 million, up 18.37%.

• Full capacity utilization at Rampur supported higher profitability; licensed capacity was increased from 33,500 KL to 60,000 KL per annum.

• PAT rose 28.71% YoY to Rs 77.74 million; the proposed dividend increased to 12%, or Rs 1.20 per fully paid share.

Financial highlights

• Sales and other income: Rs 2,350.83 million in 1999 vs Rs 2,143.46 million in 1998; reported increase 9.67%.

• PAT: Rs 77.739 million vs Rs 60.399 million; reported increase 28.71%.

• PBT was Rs 86.639 million vs Rs 66.399 million; profit before depreciation and tax was Rs 101.936 million vs Rs 80.603 million.

• Tie-up unit sales of Rs 229.02 million were excluded from reported sales; including these, sales were Rs 2,579.85 million vs Rs 2,179.49 million, up 18.37%.

• Profit available for appropriation included a Rs 40.833 million debenture redemption reserve write-back; prior-period adjustments and extraordinary items were nil in 1999.

Outlook and guidance

• Capacity expansion to 60,000 KL per annum and planned alcohol and ENA plant expansion were intended to support growth; licensed capacity was previously 33,500 KL per annum.

• Intensified marketing of 8 PM Whisky and Contessa Rum was planned after strong consumer response and both brands reaching million-case status.

• A 1.8 MW co-generation plant was expected to be installed by 31 March 2000, targeting power-cost savings and self-sufficiency in power supply.

• IMFL entry was expected to bring stiff competition in premium brands; production capability and quality investment were positioned to address domestic and export demand.