Tilaknagar Industries jumps 16% to hit all-time high as firm turns net debt-free; check Q2 numbers

The maker of Mansion House Brandy reported a net revenue from operations of ₹374.9 crore against ₹354.4 crore, up 5.8% year-on-year (YoY). 

The company said that the "slowdown in growth was driven by the transition to a new policy in our key state."

"EBITDA improved by 39.1% to ₹66.0 crore against ₹47.4 crore; adjusted for the subsidy income, EBITDA for Q2 FY25 stands at ₹55.6 crore," the company said in its earnings release. 

Further, EBITDA margin improved by 422 basis points, standing at 17.6% as against 13.4%, it added. 

Profit after tax (PAT) excluding exceptional items increased by 82.4% to ₹58.2 crore from ₹31.9 crore logged in the year-ago period.

Reported EPS (diluted) stood at ₹2.99 per share. 

Volumes grew 3.1% to 2.94 million cases, while net sales realisation (NSR) expanded 0.2% to Rs. 1,274 per case. 

Commenting on the performance, Amit Dahanukar, Chairman & Managing Director, said, “I am happy to share that we have turned net debt-free as of September 2024. From a peak debt of more than ₹1,100 crore in March 2019 to achieving net debt-free status, we have come a long way. This transformation was achieved through a combination of financial prudence and achieving industry-beating profitable growth."

The chairman added, "From a Q2 business perspective, we have delivered our highest-ever EBITDA at Rs. 66 crore. Our margins expanded on the back of a superior brand mix as well as cost optimization initiatives. All this despite subdued volume growth on account of the transitioning of RTM in our key state of Andhra Pradesh (“AP”) in Q2. "

The worst of the inflationary cycle seems behind us, and it expects to grow its profitability despite increasing investments in A&SP, providing a meaningful ‘Share of Voice’ to Brandy as a category.