Radico Khaitan, the leading alcohol maker, exhibited a robust performance in the September quarter of the fiscal year 2023-24, driving its shares up by over 4 percent to trade at Rs 1,328 on November 7. In contrast, the S&P BSE Sensex experienced a marginal dip of 170 points or 0.2 percent to 64,788 levels as of 9:20 am.
Throughout this year, Radico Khaitan’s stock has demonstrated impressive growth, surging by 28 percent, outpacing the benchmark Sensex’s 6 percent rise. The company had previously achieved a 52-week high of Rs 1,478 on August 1.
In Q2FY24, Radico Khaitan’s consolidated net profit witnessed a substantial uptick of 19 percent year-on-year, reaching Rs 64.8 crore. This remarkable growth was primarily driven by robust demand for its premium brands. Furthermore, the company’s revenue from operations experienced a significant surge of 23 percent year-on-year, reaching Rs 3,715 crore.
Notably, the prestige and above category saw a remarkable growth of 22 percent year-on-year in the September quarter in terms of volume. However, the total Indian-made foreign liquor (IMFL) segment experienced a slight decline of 3.1 percent year-on-year.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter also showcased a notable increase, surging by 34 percent year-on-year to reach Rs 120 crore. This growth was complemented by a 127 basis points expansion in EBITDA margin, reaching 13 percent in Q2FY24. This margin expansion was attributed to strategic price hikes and the company’s unwavering focus on premiumization in the IMFL business.
At 1:55 pm, Radico Khaitan shares were trading 4.18 percent higher at ₹1,357.30, reflecting the market’s positive response to the company’s strong performance in the recent quarter.
