Mumbai, Maharashtra -- (SBWIRE) --11/17/2011 -- Tilaknagar Industries Ltd. (TI), a leading player in the Indian Made Foreign Liquor (IMFL) industry has announced its consolidated financial results for the second quarter ended September 30, 2011.

Q2 FY2012 Total Revenues up 13% at Rs 1,445.4 million
- Q2 FY2012 PAT up 24% at Rs 156.6 million

- Total volumes in Q2FY2012 at 3.08 million cases

Q2 FY2012 FINANCIAL HIGHLIGHTS: (All comparisons with Q2 FY2011 Figures)

Healthy growth rate in Q2FY2012

- Volume growth of 11% to 3.08 million cases in Q2 FY2012

- Total revenues at Rs Rs 1,445.4 million, increased by 13.0% from Rs 1,279.3 million, driven by higher price realizations and increased volume growth

- EBIDTA at Rs 420.7 million from Rs 365.3 million, registering an increase of 15.2%

- Higher price realizations achieved on account of premium products featured in the diversified product portfolio

- Bottling initiatives yielded significant contributions to the earnings whilst providing a hedge against increasing glass prices

- PAT reported at Rs 156.6 million, a growth of 24.1% from Rs 126.1 million

- Basic EPS at Rs 1.36 from Rs 1.30

H1 FY2012 FINANCIAL HIGHLIGHTS: (All comparisons with H1 FY2011 Figures)

- Volume growth of 15% to 5.62 million cases in H1 FY2012

- Total revenues at Rs 2,516.6 million, increased by 18.6% from Rs 2,122.5 million

- EBIDTA at Rs 643.4 million from Rs 533.7 million, registering an increase of 20.6%

- PAT reported at Rs 180.6 million from Rs 170.8 million

- Basic EPS at Rs 1.57 from Rs 1.76

OPERATIONAL PERFORMANCE HIGHLIGHTS:

- Total number of cases sold:

- Q2 FY2012 at 3.08 million compared to 2.78 million in Q2FY2011

- H1 FY2012 at 5.62 million compared to 4.90 million in H1 FY2011

- Volumes witnessed a healthy growth due to;

- Strategic allocation of brands in the premium and semi-premium category catering to demands of consumers with differing wallet share

- Millionaire brands namely ‘Mansion House’ Brandy and ‘Madira’ Rum continue to display an upward trend

- Continued success of brands in CSD, is a prominent contributor to growth registered during the quarter

- TI registered 15% increase in volumes delivered during H1 FY12, although further potential growth was affected due to instability in political climate of key markets of the Company i.e Andhra Pradesh and Tamil Nadu

Commenting on these results, Mr. Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries Ltd, said: “Our performance this quarter reflects the resilience of our business model and strategies, that we as a team, have strived for. Our volume growth witnessed a healthy increase during the quarter led by a diversified brand portfolio, a strategic price-mix effect and our commitment to enhance our geographic presence across the country. In line with this philosophy, was our recent acquisition of ‘Punjab Expo’. We believe this is an apt addition to our manufacturing capabilities creating opportunities to extend our presence in North India. We witnessed healthy topline growth this quarter, driven by our efforts to prioritize our resources towards premium products which have translated into higher realizations.

Moreover, our ‘Family Shaped’ bottling initiative which had taken root in the past few quarters has enabled us to create enhanced value for our business. We believe, with the rising input costs, especially glass, this prudent investment has helped us to mitigate the impact of such challenges.

Going ahead, we expect to see higher levels of benefits from such initiatives and we remain optimistic of our capabilities to weather the current headwinds of inflationary pressures, whilst establishing a prominent market presence, incremental earnings and a fortified brand TI.”
Commenting on these results, Mr. Lalit Sethi, Chief Financial Officer, Tilaknagar Industries Ltd, said: "I am pleased to present TI’s results for the second quarter. Our financial metrics, in this period, reflect the positive impact of our investments and strategic initiatives.

Volume growth witnessed during the quarter is on the back of the varied brand bouquet, our focus on premiumisation and healthy performance delivered from the CSD segment.

While higher realizations from the premium segment have driven our topline growth, benefits from our bottling initiative have resulted in higher savings, this quarter. While mindful of the macro environment factors, we continue to carefully manage our expenses with the eventual focus on profitable growth.

With strong operational capacities and commitment to expand brand TI, we believe the Company is well poised to grow its market share and capitalize the opportunities that the alcobev sector offers.”
OUTLOOK:

- TI is strategically aligned to capture the growth momentum in the IMFL industry

- The IMFL industry is poised to continue its upward growth on account of factors such as :

- Rise in personal disposable income and increasing consumer base

- Favorable demographics for alcohol consumption with a large section of India’s population within the legal drinking age

- TI’s diverse brand portfolio featuring brands at the premium and semi-premium price points are well placed to convert the expanding IMFL market segment into earnings

- Millionaire brands- ‘Mansion House’ brandy and ‘Madira’ rum will continue to gain traction

- Price hike on ‘Mansion House’ brandy in Karnataka to deliver higher earnings in line with volume growth

- CSD segment to continue witnessing traction

- Price hikes taken by the Company in the CSD Segment with effect from Nov 2011, the benefits of the same will be visible in H2 FY12

- Concerted efforts to expand presence pan India

- Acquisition of ‘Punjab Expo’ is a step further in expanding TI’s market presence in the Northern segments in India

- Recently commissioned grain based facility, capable of producing superior quality of alcohol, minimizes TI’s exposure to volatile molasses prices

- In the coming quarters, with higher capacity utilization, economies of scale are expected to offset overhead costs, interest and depreciation

- Investments in Family Shaped bottles are generating cost savings in an environment where glass prices are rapidly increasing. Further benefits are expected to accrue in H2FY12

- The Company is optimistic of its performance for the remainder of the year

- H2 is normally characterized with higher levels of growth patterns for given TI’s product profile

- Committed efforts to increase ‘premiumisation’ of the brand portfolio

- Benefits of price increase taken on Mansion House Brandy (in Karnataka) and CSD Segment coupled with savings from the Family Shaped bottling initiative to be more visible in H2 as volumes further increase

- Overall, with well defined strategies which incorporate growth aligned to macro environment factors, TI is well equipped to deliver sustainable long term earnings and profitability

- The industry continues to witness certain headwinds related to inflationary pressures, rising packaging costs especially glass, hike in excise duties and taxes along with political instability in the Southern states

TILAKNAGAR INDUSTRIES LTD (TI): BRIEF OVERVIEW
Tilaknagar Industries is a well-established player in the expanding Indian Made Foreign Liquor (IMFL) industry in India. TI’s expansive brand portfolio comprises of over 40 brands catering different price points. TI has engineered the creation of two millionaire brands, ‘Mansion House’ brandy and ‘Madira’ Rum which according to Euromonitor, was recognized as the fastest growing domestic brands.

Besides popular In-house brands, TI has acquired 7 more brands from the Alcobev Industry to broaden its brand bouquet and expand its reach in different market geographies. These brands are also registered with CSD and also sold in the Northern markets.

The Company has 32 manufacturing facilities spread across India which it operates through 1 owned, 4 subsidiaries, 7 lease arrangements and 20 tie-up arrangements. Its primary manufacturing facility is in Shrirampur, Maharashtra with an installed capacity of 100 KLPD including a new 50 KLPD molasses based distillation plant commissioned in October 2009. The Company commenced commercial production at its new grain based distillery of 100 KLPD. The Company recently acquired ‘Punjab Expo Breveries Private Limited’ (Punjab Expo), in October 2011, with a bottling capacity of 50,000 units.

TI has successfully evolved over the years to be a dominant player in the Southern Indian states including Andhra Pradesh, Kerala and Tamil Nadu. TI consistently introduces brands to cater to the needs of different segments of society.

About Tilaknagar Industries Ltd (TI)
Tilaknagar Industries Ltd (BSE: 507205 / NSE: TI) is one of the renowned Indian Made Foreign Liquor players (including whisky, brandy, gin, rum and vodka) with presence across India. The Company manufactures, markets and sells more than 40 brands across all price points. TI’s subsidiaries are Prag Distillery (P) Ltd, Vahni Distilleries (P) Ltd, Kesarval Springs Distillers (P) Ltd and Punjab Expo Breveries Private Limited. The Company exports its products to Western Africa, the Middle East, the Far East and Caribbean countries.