ICICI Direct: Radico Khaitan’s Strong Margins In Challenging Demand Scenario
Radico Khaitan’s Magic Moments Liquor bottles. (Photo: Company website)

ICICI Direct: Radico Khaitan’s Strong Margins In Challenging Demand Scenario

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Radico Khaitan Ltd. reported strong margins in Q1 FY21 in spite of a decline in revenues. Net revenues for Q1 FY21 declined 34% YoY to Rs 409 crore due to 43% decline in Indian made foreign liquor (IMFL) volumes to 3.54 million cases.

Prestige and above segment volumes declined 47% while regular segment volumes declined 41% YoY. Gross margin increased 660 basis points YoY to 54.6%.

In spite of negative operating leverage, the company reported a 230 basis points YoY improvement in Ebitda margin to 18.4%, which restricted the decline in Ebitda to 25%.Consequently, profit after tax declined 20% YoY to Rs 44 crore owing to lower tax rate (24%in Q1 FY21 versus 34% in Q1 FY20).

Click on the attachment to read the full report:

ICICI Direct Radico Khaitan Q1FY21 Result Review.pdf

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