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Tilaknagar Industries net profit rises to Rs 13.88 crore in Q2; Revenue jumps 36.5 per cent

Tilaknagar Industries Limited (BSE: 507205) (NSE: TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has reported a 22.8 per cent increase in net profit at Rs 13.88 crore in the quarter ended September 2022, up from Rs 11.30 crore in the same period a year ago.  The company registered a 36.5 per cent jump in net revenue at Rs 274.50 crore in the July-September quarter 2022 as against Rs 201.11 crore in the corresponding quarter a year ago.

Renowned for manufacturing the famous ‘Mansion House’ brand, Tilaknagar Industries reported a 35 per cent year-on-year volume growth. In the quarter ended September 2022, Tilaknagar Industries’ sales volumes increased to 24.3 lakh cases as against 18.1 lakh cases in the same period last year. The quarterly volumes are the company’s highest since FY14.

The company’s Earnings Before Interest Tax Depreciation and Amortization (EBITDA) stood at Rs 31.43 crore in the quarter under review as against Rs 30.54 crore in the year ago period.

“We are delighted to have delivered a strong quarter led by substantial sales volumes, the highest in the past over eight years. Going ahead, our focus will be to continue this momentum despite inflationary headwinds that the industry is currently facing. Our strategy is to build on our growth through new product innovations and regional expansions, with an eye on sustainable profitability.”

Commenting on the results, Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said

In FY23, Tilaknagar Industries launched India’s first premium flavoured brandy under its flagship brand Mansion House and the premium variant of its Mansion House Brandy – Mansion House Reserve.

In line with its endeavour to become near net-debt free by FY24, the company in the half-year ended September 2022 reduced its debt by Rs 100 crore to Rs 349 crore as against Rs 449 crore as on March 2022.

Today, Tilaknagar Industries also announced a preferential issue to raise an amount of Rs 100 crore from San Francisco-based Think Investments, subject to regulatory approvals.  Founded by Shashin Shah, Think Investments is a global US$3 billion investment firm headquartered in San Francisco with additional presence in Mumbai.

Post the investment, Think Investments will own approximately 5.5 per cent equity stake on a fully diluted basis. The Promoter Group will own nearly 42.1 per cent equity stake on a fully diluted basis.

The funds raised in this issue will be used towards accelerating the company’s growth around the strength of its current brands and markets. It will also fuel new product innovations and expansion into newer markets besides helping the company become near net-debt free by the end of FY24.

About Tilaknagar Industries:

Tilaknagar Industries ("TI") is one of the leading IMFL manufacturers in India. Founded in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company was then engaged in the manufacture of sugar and allied products. TI now has over 75 years of excellence in the consumer goods category. The Dahanukar family continues to be the promoter of TI sharing the same vision and values as the founders. Under the current leadership of Shri Amit Dahanukar, the company has grown to be the largest manufacturer of premium brandy in India. Website
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