Radico Khaitan (RADICO) Q4 2000 earnings summary

Executive summary

• FY00 sales from Rampur operations rose 9% to Rs.2,545.34m; PAT increased 26% to Rs.97.67m. Tie-up sales expanded sharply and 8 PM whisky grew 84%.

• Strategy centered on brand building, regional bottling tie-ups, cost efficiency and wider distribution; planned launches and market opening create growth opportunities alongside stronger import competition.

Financial highlights

• Sales and other income reached Rs.2,580.68m vs Rs.2,384.42m in 1999; Rampur operations sales were Rs.2,545.34m vs Rs.2,342.47m.

• Profit before tax increased to Rs.114.67m from Rs.86.64m; PAT rose to Rs.97.67m from Rs.77.74m.

• Profit after depreciation but before tax was Rs.114.67m; profit before depreciation and tax rose to Rs.140.82m from Rs.101.94m.

• Proposed dividend increased to 14% (Rs.1.40/share) from 12% (Rs.1.20/share); EPS was Rs.6.87.

Outlook and guidance

• Focus remains on brand building, growth through tie-up units, and launches in upper and lower market tiers; Special Appointment premium whisky was planned for launch.

• Overseas discussions were underway to market wines and other imported products after quantitative restrictions were lifted in April 2001.

• A mini ERP rollout, quality-system development toward ISO 9001:2000 certification, and ongoing value analysis and financial restructuring were planned.