Radico Khaitan Ltd reported a 22.63 percent drop in total net profit to Rs 61.22 crore in the third quarter ended December 2022 due to commodity price fluctuations affecting margins.
Radico Khaitan reported a consolidated net profit of Rs 79.13 crore in the October-December quarter a year earlier in a BSE filing.
Its income from operations fell 3.97 percent to Rs 3,166.19 crore in the current fiscal quarter, compared to Rs 3,297.24 crore in the previous fiscal quarter.
Radico Khaitan’s total costs were Rs 3,092.49 crore in the third quarter of FY23, a 3.30 percent decrease from Rs 3,198.30 crore the previous year.
Its overall Indian-made foreign liquor (IMFL) sales volume was unchanged for the quarter, at 6.99 million cases.
Prestige and above-brand volume was 2.59 million cases, up 14.1% in this sector. Its net sales from this category increased by 19.1% to Rs 402.5 crore.
“On a year-over-Y basis, continued commodity inflation resulted in gross margin compression, particularly in the non-IMFL business, where we have recently received price increases.” “Given a favourable product mix change, the impact of cost-push on the gross margin of the IMFL business was mitigated to a large extent,” said Radico Khaitan in its earnings statement.
Although specific commodities have stabilised sequentially, the overall commodity landscape remains volatile, according to the report.
Chairman & Managing Director Lalit Khaitan said: “Radicco Khaitan has delivered another quarter of consistent financial performance driven by strong premium volume growth, a robust brand portfolio, and excellent execution capabilities.” In terms of the future, he stated that the corporation is dedicated to a long-term strategy of premiumization.
“While the raw material scenario still remains volatile, we have seen early signs of deflation in certain commodities.” Furthermore, we have recently received price increases in the non-IMFL business in the state of UP, which will hold us in good stead in the next fiscal year. He stated that Radio Khaitan Ltd shares closed on the BSE at Rs 1,118.90 on Tuesday, down 1.83 percent from the previous close.
