Khaitan Radico announced its Q1 results reporting a 19.52% reduction in Net Profit Qtr YoY basis but a 14.63% growth in quarterly gains. Its total revenue faced a 34.44% decline YoY and 30.04% decline QoQ basis.
|Q1 FY21Rs Cr.||Q4 FY20Rs Cr.||Q1 FY20Rs Cr.||QoQ%||YoY%|
The alcoholic beverage sector faced a 31% decline in sales YoY, 40% decline in Gross Profit and 34% decline in net profit YoY.
There was no Indian-made foreign liquor (IMFL) sales during April and it resumed only after the first week of May when the lock down was partially lifted. However, from June onwards, the firm saw early signs of recovery. While total IMFL volumes decreased by 43.5% during the quarter, the decline was only 9.8% y-o-y in June 2020. IMFL sales accounted for 73.2% of the net revenue during the quarter as against 80% in Q1 FY20.
However due to relaxed regulations by state governments which allowed delivery of alcohol at home. The QoQ Net Profit of the Radico Khaitan rose to 14%
.The company said “because of lockdown, the volume for the quarter ended June 30, 2020, was impacted partially, as there were no sales during the period April 1, 2020, till May 04, 2020. The sales have resumed, post opening up of lockdown and have picked up in many states during June 2020”.
Radico Khaitan Managing Director Abhishek Khaitan said the company’s profitability has improved due to a better state and product mix and a higher share of exports business.
“We recently received a price increase in one of the key liquor consuming states in south India. This price increase also had a positive impact on our profitability. Radico Khaitan continues to focus on further strengthening its premium products portfolio through new launches and ongoing marketing investments,” he said.
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