To go to the depth of the consumer's heart and be his friend forever. Q1 FY2016 Earnings Presentation August 10, 2015

Transcription

1 T g t the depth f the cnsumer's heart and be his friend frever Q1 FY2016 Earnings Presentatin August 10, 2015

2 Imprtant Ntice This presentatin cntains statements that cntain frward lking statements including, but withut limitatin, statements relating t the implementatin f strategic initiatives, and ther statements relating t Radic Khaitan s future business develpments and ecnmic perfrmance. While these frward lking statements indicate ur assessment and future expectatins cncerning the develpment f ur business, a number f risks, uncertainties and ther unknwn factrs culd cause actual develpments and results t differ materially frm ur expectatins. These factrs include, but are nt limited t, general market, macr-ecnmic, gvernmental and regulatry trends, mvements in currency exchange and interest rates, cmpetitive pressures, technlgical develpments, changes in the financial cnditins f third parties dealing with us, legislative develpments, and ther key factrs that culd affect ur business and financial perfrmance. Radic Khaitan undertakes n bligatin t publicly revise any frward lking statements t reflect future / likely events r circumstances. 2

3 Financial Highlights Q1 FY2016 vs. Q1 FY2015 Net Sales f Rs Crre Prestige & Abve brands vlume grwth at 8.7% Prestige & Abve brands cntributin t the ttal IMFL vlumes increased frm 20.8% t 25.2% Operatinal EBITDA f Rs Crre Operatinal EBITDA margin imprved 39 bps t 11.1% Reductin in interest csts Operatinal Net Incme f Rs Crre up 20.3% 3

4 Management Perspectives Cmmenting n the results and perfrmance, Dr. Lalit Khaitan, Chairman and Managing Directr said: We are pleased t start the new fiscal year n a psitive nte. Despite the verall subdued vlume grwth, we reprted a sustained tp-line perfrmance with imprved prfitability during the quarter. With the anticipated recvery in the perating envirnment, we expect this trend t cntinue fr the rest f the year. In line with management s strategy, we cntinued ur fcus n free cash flw generatin and sustained debt reductin. This will further strengthen ur balance sheet fr future grwth pprtunities. Cmmenting n the results and perfrmance, Mr. Abhishek Khaitan, Managing Directr said: During Q1 FY2016, ur Prestige & Abve brands cntinued their rbust perfrmance with 8.7% y--y vlume grwth. These brands nw cntribute t ver 25% f the ttal IMFL vlumes. Despite relatively flat revenues, we reprted peratinal Net Incme grwth f ver 20% reflecting ur imprved margins and cash flw generatin. Onging innvatin and R&D t match cnsumer s changing preferences has been at the heart f the Cmpany. In line with this strategy, we recently launched Electra, a ready t drink prduct targeted at the yunger generatin. We are in the initial stages f test marketing it in select states and have received encuraging cnsumer feedback. 4

5 Ecnmic Envirnment Input csts experienced a stabilising trend; Anticipated price increases acrss states t ffset subdued vlumes As per the latest release by the India Sugar Mills Assciatin (ISMA), the verall sugarcane acreage in sugar seasn is estimated t be almst flat at 5.36 millin hectares cmpared with the last year Sugar prductin based n preliminary estimates is expected t be arund 28.0 millin tnnes which is 0.3 millin tnnes less than the seasn Hwever, given the cnsumptin estimates f 25.2 millin tnnes, next sugar seasn is expected t start with a significant balance f 10.2 millin tnnes Raw material prices have remained stable during Q1 FY2016 and are expected t remain at these levels in the near term 5

6 Financial Overview Q1 FY2016 Financial Perfrmance Q1 y--y Full Year y--y (Rs. Crre) FY2016 FY2015 Grwth (%) FY2015 FY2014 Grwth (%) Grss Sales 1, , % 4, , % Net Sales (1.6)% 1, ,857.2 (0.6)% Operatinal EBITDA % (13.2)% Operatinal EBITDA Margin (%) 11.1% 10.7% 9.8% 11.2% Net Incme % (5.1)% Operatinal Net Incme % (9.3)% Operatinal Basic EPS (Rs.) % (9.3)% Net Sales: Includes sale frm tie-up units net f ryalty incme Operatinal Net Incme: Net Incme has been adjusted fr freign exchange fluctuatin lss / (gain) f Rs. 4.1 Crre in Q1 FY2016 cmpared with Rs. 1.9 Crre in Q1 FY2015 and Rs Crre in full year FY2015 cmpared with Rs Crre in full year FY2014. This is as per para 46A f Accunting Standard 11. This freign exchange fluctuatin lss is related t ECBs and is a nn cash item in the Other Expenditure f the statutry financial statements 6

7 Operatinal Perfrmance Prestige & Abve categry cntinues t be a key cntributr and driver f future grwth Prestige & Abve as % f Ttal Vlume 20.8% 25.2% 18.3% 20.7% FY14 FY Q1 FY15 Q1 FY16 FY14 FY15 Prestige & Abve (lakh cases) Regular & Others (lakh cases) Radic Khaitan strategically defcused the sale f lw margin categry brands in the state f Tamil Nadu. This resulted in a decline f vlumes in Tamil Nadu frm 6.50 lakh cases in Q1 FY2015 t 2.13 lakh cases in Q1 FY2016. Excluding this impact, the Cmpany s verall vlumes wuld have declined by (2.4)% cmpared t (10.3)% 7

8 Perfrmance Discussin Q1 FY2016 Highlights Net Sales: Net Sales declined marginally by (1.6)% cmpared t the same perid last year. IMFL vlume declined by (10.3)% primarily due t the strategic defcus n the lw margin categry brands in Tamil Nadu. Hwever, the Prestige & Abve brands vlume increased by 8.7%. As a percentage f ttal IMFL vlumes, these brands nw cntribute 25.2% cmpared t 20.8% last year. EBITDA: Operatinal EBITDA increased by 2.0% and margins expanded by 39 basis pints t 11.1% cmpared t the same perid last year. EBITDA grwth was impacted t a certain extent by an increase in the Other Expenses. Other Expense: Other Expense during the quarter f Rs Crre include a sum f Rs Crre n accunt f excise duty n finished gd valuatin in accrdance with AS-2. The crrespnding credit has als been cnsidered in the valuatin f finished gds inventry. Interest Expense: Interest Expense declined during the quarter as a result f the Cmpany s nging fcus n free cash flw generatin and lng term debt repayment. 8

9 Cmpany Overview Radic Khaitan is ne f the leading players in the premium spirits segment Radic Khaitan Overview One f the largest players in the Indian spirits industry Operates three distilleries and ne JV with ttal capacity f 150 millin litres 33 bttling units spread acrss the cuntry limit interstate taxes and transprt csts One f the largest prviders f branded IMFL t the Canteen Stres Department (CSD), which has significant entry barriers Pan-India manufacturing and distributin netwrk cvering ver 90% f retail utlets Sale thrugh ver 45,000 retail and 5,000 n-premise utlets Alchlic beverages industry value is expected t grw at CAGR f 5.9% Lw per capita alchl cnsumptin in India prvides rm fr significant grwth Market Leading Premium Brands Launched in 2005, Magic Mments is the market leader in India in the premium Vdka categry Premium vdka industry in India has grwn at a 5 year vlume CAGR f 15% Launched in 2009, Mrpheus Brandy is the market leader in the super premium brandy categry Launched in 2011, After Dark is well psitined in the fast grwing premium whisky segment in India Capitalizing n the success f Magic Mments, the Cmpany launched Verve super premium vdka in

10 Statutry Results First Quarter Results fr Fiscal Year 2016 PART- I (Figures Rs. In lakhs) Sl. N. Particulars (1) (2) (3) (4) Quarter Quarter Quarter Year ended ended ended ended (Audited) (Unaudited) (Audited) (Unaudited) 1 Incme frm peratins (a) Grss Sales 92, , , , Less: Excise duty 53, , , , Net Sales / Incme frm Operatins 38, , , , (b) Other Operating Incme , , Ttal Incme frm Operatins (net) 39, , , , Expenditure (a) Cst f material cnsumed 17, , , , (b) Purchase f stck-in-trade , (c) Changes in inventries f finished gds, wrk-in-prgress and stck-in-trade (177.97) (928.98) (d) Emplyee benefits expense 2, , , , (e) Depreciatin and amrtisatin expense 1, , , (f) Selling & Distributin 7, , , , (g) Other expenditure 6, , , , Ttal expenses 35, , , , Prfit / (Lss) frm Operatins befre Other Incme, Finance csts & Exceptinal Items (1-2) 3, , , , Other Incme , , Prfit / (Lss) frm rdinary activities befre 4, , , , finance csts and exceptinal items (3+4) 6 Finance Cst 2, , , , Prfit / (Lss) frm rdinary activities after finance csts but befre exceptinal items (5-6) 2, , , , Exceptinal items Prfit (+) / Lss (-) frm Ordinary Activities befre tax ( 7+8 ) 2, , , , Tax Expense , Net Prfit (+) / Lss (-) frm Ordinary Activities after tax ( 9-10 ) 1, , , , Extra rdinary items (net f tax expense Rs. in lakhs) Net Prfit (+) / Lss (-) fr the perid (11-12) 1, , , , Paid up equity share capital (f Rs. 2/- each) 2, , , , Reserves excluding revaluatin reserve 79, (i) Earning per share (befre extra rdinary items) (f Rs.2/- each) nt annualized Basic Diluted (ii) Earning per share (after extra rdinary items) (f Rs.2/- each) nt annualized Basic Diluted PART - II A Particulars f Sharehlding 1 Public sharehlding (a) N. f Shares (b) Percentage f Sharehlding Prmters and prmter grup Sharehlding (a) Pledged / Encumbered - Number f shares Percentage f shares (as a % f the ttal sharehlding f prmter and prmter grup) - Percentage f shares (as a % f the ttal share capital f the Cmpany) (b) Nn-encumbered - Number f shares Percentage f shares (as a % f the ttal sharehlding f prmter and prmter grup) - Percentage f shares (as a % f the ttal share capital f the Cmpany) B Investr Cmplaints Pending at the beginning f the quarter Received during the quarter Dispsed ff during the quarter Remaining unreslved at the end f the quarter Quarter ended NIL NIL NIL NIL 10

11 Statutry Results First Quarter Results fr Fiscal Year 2016 Ntes: 1. The abve financial results were reviewed by the Audit Cmmittee and taken n recrd by the Bard f Directrs in their meeting held n 10 th August The Statutry Auditrs have carried ut a limited review f the financial results fr the quarter ended 30 th June The Cmpany als gets its prducts manufactured under varius arrangements with ther distilleries / bttling units spread all ver the cuntry. The Grss Sales fr the cmpany s prducts thrugh these peratins nt included in the abve sales figures are:- 4. The resultant incme t Radic Khaitan Ltd. (RKL) frm these peratins is included hereinabve Quarter ended (Unaudited) Quarter ended (Audited) Quarter ended (Unaudited) Year ended (Audited) 27, , , ,30, The Cmpany has ne majr peratinal business segment viz. liqur and related prducts, which accunts fr mre than 90% f the ttal turnver f the Cmpany. 5. Cnsequent t the applicatin f para 46A in AS -11 vide ntificatin dated 29 th December 2011, the Cmpany has written ff a sum f Rs lacs n accunt f freign exchange translatin variatins in lng term freign currency brrwings. 6. The figures f the quarter ended 31 st March 2015 are the balancing figures between the audited figures in respect f the full financial year and published year t date figures upt nine mnths f the relevant financial year. 7. Previus year / perid figures have been regruped / rearranged, wherever necessary t make them cmparable with the current perid figures. Fr Radic Khaitan Place: New Delhi Date: Dr. Lalit Khaitan Chairman & Managing Directr 11

12 Radic Khaitan Limited (CIN: L26941UP1983PLC027278) Plt N. J-I, Blck B-I, Mhan C-perative Industrial Area, Mathura Rad, New Delhi Ph.: /5500 Fax: /42 Dilip Kumar Banthiya Chief Financial Officer Mukesh Agrawal Head Investr Relatins Saket Smani Churchgate Partners