Radico Khaitan's Premium Surge: A Profitable Quarter

Radico Khaitan reported a 24.41% rise in consolidated net profit to Rs 80.66 crore for Q2 2024, driven by a growth in its premium segment. Revenue reached Rs 3,906.58 crore. While experiencing foodgrain inflation, the company benefits from premiumisation in its IMFL business, with improved margins.

Radico Khaitan, a leading liquor manufacturer, has announced an impressive 24.41% increase in its consolidated net profit, reaching Rs 80.66 crore for the second quarter ending September 2024. This growth is largely attributed to its thriving premium segment, which continues to enhance the company's profitability.

The company's revenue from operations ascended by 9.45% to Rs 3,906.58 crore during the quarter. Despite challenges like foodgrain inflation, Radico Khaitan has managed to improve its gross margin by capitalizing on the premiumisation of its Indian-made foreign liquor (IMFL) business. This strategic move has bolstered the company's financial performance.

Lalit Khaitan, Chairman & Managing Director, emphasized Radico Khaitan's consistent operational success. The firm reported double-digit growth in its Prestige & Above category for 12 consecutive quarters. However, the company's net debt rose to Rs 745.1 crore, driven partly by increased inventory. Shares closed at Rs 2,294.30 on BSE, reflecting a 2.70% increase.

(With inputs from agencies.)