Radico Khaitan, maker of the popular ‘Magic Moments’ brand of vodka, reported a 32.8 percent increase in profit in the July-September quarter on increasing demand for its premium alcohol.
The company’s net profit rose to Rs 82.2 crore, a gain of 32.8 percent, during the quarter compared to Rs 61.9 crore in Q2FY24. Its net revenue from operations rose by 20.7 percent year-on-year (YoY) to Rs 1,116.3 crore compared to Rs 925 crore in Q2FY24.
In the July-September quarter, its total IMFL volume (Indian-made foreign liquor) stood at 6.78 million cases, a decrease of 2.5 percent, whereas the Prestige & Above category volume stood at 3.20 million vases, a gain of 12.6 percent, according to earning disclosure by makers of Rampur single malt, Magic Moments Vodka and Jaisalmer Indian Craft Gin. The contribution of Prestige & Above brands to the IMFL volumes stood at 53.2 percent in Q2FY25 compared to 47.1 percent in Q2FY24, the release added.
Speaking about the company’s performance, Lalit Khaitan, Chairman & Managing Director, Radico Khaitan, said, “We continued to deliver strong operational performance in Q2 FY2025, achieving 12.6percent growth in the Prestige & Above category, along with sequential improvement in EBITDA margins. Radico Khaitan has achieved double-digit premium volume growth for 12 consecutive quarters. Over the past three years, we have faced unprecedented inflationary pressures, which impacted our operating margins. However, by focusing on innovation and investing in our premium brand portfolio, we have successfully navigated these challenging times. With the worst of the input cost pressures behind us, we expect to continue delivering consistent and profitable growth. I am highly optimistic about the growth opportunities in the Indian alcobev sector and confident in our strategic roadmap, which will create long-term sustainable value for all our stakeholders.”
In terms of half-yearly performance, the company recorded a total IMFL volume of 13.85 million cases in H1FY25, a decrease of 3.3 percent, compared to H1FY24. The Prestige & Above brands volume stood at 5.93 million cases in H1FY25 a gain of 13.4 percent.
Its net revenue from operations for H1FY25 stood at Rs 2,252.8 crore (a gain of 19.9 percent) compared to the corresponding period in FY24. The liquor maker’s gross profit for H1FY25 was recorded at Rs 953.5 crore, a jump of 15.7 percent from H1FY24.
Abhishek Khaitan, Managing Director of Radico Khaitan, said, “Q2 FY2025 marked a significant turnaround in our operational performance, underscoring the strength of our robust business model. Innovation remains a core strength of Radico Khaitan, and in line with our strategy of expanding our luxury portfolio, we launched the newest expression of Rampur Indian Single Malt, Barrel Blush. Initially matured in American Bourbon barrels and finished in Australian Shiraz wine casks, it stands for tradition and expert craftsmanship. Ahead of the festive season, we launched a new campaign for one of our most successful brands, Royal Ranthambore, featuring Bollywood star Saif Ali Khan, which is expected to elevate the brand to new heights. We are making strong progress on our strategic roadmap and remain confident in delivering results in line with our expectations.”
Meanwhile, shares of Radico Khaitan scored a new milestone on October 24, with the price hitting a 52-week high of Rs 2,375 on intraday basis. The stock has also been on a consecutive gain for the past two days.
