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Conference Call Overview • Date: July 29, 2024 • Submitted to: BSE and NSE on August 1, 2024 • Participants: Whole-Time Director Anshuman Kedia and CFO Ankit Agarwal
Financial Performance • Record quarterly revenue: INR 252 crores (61% YoY increase) • Profit after tax: INR 18 crores (44% YoY increase) • Rising grain prices noted but managed effectively
Expansion Plans • New brand launches in Delhi and Chhattisgarh, with more states to follow • Proprietary IMFL segment growth projected: 12% to 14% for FY'25 • Overall revenue growth projected: 12% to 14% for FY'25 and 13% to 14% for FY'26 • Investment of INR 80 crores for a new malt plant, operational by March 2025
Ethanol Production • Current realization: INR 71.8 per liter from maize • Plans to fund expansions through internal accruals, maintaining low debt levels (INR 65 crores)
Q&A Highlights • Discussion on IMIL segment revenue and EBITDA contributions • Clarification on IMFL licensed brands and proprietary brand positioning • Increase in "others" segment due to ethanol by-products • Insights on product mix affecting realizations and margin growth • Future capex plans and significant revenue contributions expected from Madhya Pradesh
Key Inquiries • Profitability from byproducts in ethanol sales not included in reported figures • Current ENA margins lower than expected due to rising maize prices • Plans for premium IMFL brands and new ready-to-drink beverage "Culture" launching in Q2 • Seasonal trends affecting IMFL licensed volumes, with year-on-year growth noted
Conclusion • Anshuman Kedia invited further inquiries and thanked participants for their engagement.
Conference Call Overview • Date: May 3, 2024 • Submission to: BSE and NSE on May 6, 2024 • Key Executives Present: • Anshuman Kedia (Whole-Time Director) • Tushar Bhandari (Whole-Time Director) • Ankit Agrawal (CFO)
Strategic Focus • Emphasis on: • Premiumization • Geographic expansion • Proposed dividend increased to INR 2 per share for FY '24 • Introduction of new products: • Ethanol • Central Province Rum • Nicobar Handcrafted Gin
Financial Highlights • Q4 FY '24: • Net revenue: INR 242 crores (31% increase) • EBITDA: INR 18.5 crores (8% margin) • Profit after tax: INR 12.3 crores (25% increase) • FY '24 Total: • Net revenue: INR 760 crores (8% increase) • EBITDA: INR 76.7 crores • Profit after tax: INR 50.6 crores (22% growth)
Operational Insights • Establishment of a subsidiary in Uttar Pradesh for expansion • Projected double-digit revenue growth, especially in premium products • Ethanol plant currently at 40% capacity utilization
Product Development and Market Expansion • Successful launch of premium rum and super-premium gin • Plans to target metro cities for sales growth • Expansion into new states pending government approvals
Challenges and Market Conditions • Raw material inflation impacting gross margins • Decline in IMIL volumes due to government regulations • Anticipated revenue from the ethanol segment: INR 300 crores for FY '25
Future Projections • Expected revenue growth of 15-16% across segments • IMFL proprietary brands projected growth: 15-20% • Financing for capex of INR 270 crores primarily from internal accruals
Additional Notes • Minimal debt financing anticipated • Current ethanol blending at 11-12%, with a government target of 20% by January 2025 • Management open to further inquiries through investor relations agency
Company Overview • Date of Call: January 29, 2024 • Participants: Mr. Tushar Bhandari (Whole-Time Director), Mr. Ankit Agrawal (CFO) • Focus: Strategic updates and financial performance
Strategic Highlights • Premiumization: Launch of new products like Central Province Rum and Gin Nicobar. • Market Expansion: Plans to enter new markets, including a subsidiary in Uttar Pradesh. • Ethanol Operations: Commercial operations of a grain-based ethanol plant to enhance profitability. • Challenges: Rising grain prices and regulatory impacts on ENA sales.
Financial Performance • Q3 FY24 Results: • Net Revenue: INR 191 crores • EBITDA: INR 20 crores (23% YoY growth) • PAT: INR 13 crores (16% increase) • Nine-Month Results: • Net Revenue: INR 518 crores • EBITDA: INR 58 crores (22% growth) • PAT: INR 38 crores (21% growth)
Q&A Highlights • Margins: Expected lower double-digit margins for FY25; stable glass prices. • Ethanol Production: Driven by government initiatives; economies of scale expected. • Raw Material Strategy: Diversifying sources, primarily using maize. • IMFL Brand Realizations: Stabilization expected for licensed brands; proprietary brands anticipated to increase.
Future Plans • Geographic Expansion: Entry into Maharashtra and Goa; plans for Karnataka, Puducherry, and Assam. • Ethanol Plant Revenue Projection: Expected INR 250-300 crores for FY25. • Capital Expenditure: INR 150-200 crores for new projects, funded by internal accruals.
Closing Remarks • Investor Relations: Encouragement for further inquiries through Go India Advisors. • Feedback: Importance of appealing product packaging and promoter involvement in investor relations.
Conference Call Overview • Date: November 9, 2023 • Submitted to: BSE and NSE on November 15, 2023 • Host: Valorem Advisors • Focus: Operational and financial performance amidst global economic conditions
Key Financial Highlights • Revenue Growth: • 17% year-on-year increase to Rs. 170 crores • EBITDA: • 81% year-on-year increase to Rs. 19.5 crores • Profit After Tax (PAT): • 80% growth to Rs. 13.5 crores
Operational Updates • Ethanol Manufacturing Facility: • Completion noted, trial runs to begin soon • Commercial production expected in December • Sales Trends: • Increase in ENA sales due to rising ethanol prices • Shift towards premium products affecting IMIL sales
Pricing and Cost Management • Product Pricing: • Sale price increased from Rs. 60 to Rs. 66-67 • Further 3-4% increase anticipated • Raw Material Prices: • Stable year-over-year, slight uptick in current quarter • Coal prices have declined
Future Growth Strategies • Premiumization: • Focus on enhancing margins through premium products • New product launches planned, including super-premium gin and blended Scotch • Market Expansion: • Exploring operations in Punjab and Rajasthan • Targeting a 20% ethanol blending rate by 2025
Capital Expenditures and Utilization • CAPEX: • Planned Rs. 30 crores for a new bottling hall • Capacity Utilization: • Currently at 95-100%, expected to reach around 90% for ethanol project
Investor Inquiries • Ethanol Project: • Utilization rate confirmed at around 90% • Brandy Sales: • Fifth largest player in Kerala, selling 1.2 lakh cases monthly • IMFL Growth Rate: • Currently sustainable at 10%, potential to rise to 20% with market development
Conclusion • Management expressed gratitude to participants and extended Diwali wishes.
Earnings Call Overview • Date: August 11, 2023 • Submitted to: BSE and NSE on August 18, 2023 • Host: Valorem Advisors
Company Performance • Market Conditions: Stable liquor market in India despite revenue decline. • Revenue: 15% decline to INR 156 crores. • EBITDA Margin: Improved to 11.83%. • IMIL Segment: Revenue decline due to government policy changes. • IMFL Growth: Growth in IMFL category; plans for new premium products, including craft gin.
Strategic Decisions • Merger Withdrawal: Cancelled merger with Mount Everest Breweries; confidence in growth strategy. • Market Expansion: Entering new states (Goa, Assam) and launching premium products.
Challenges and Strategies • Raw Material Costs: Pressures from grain and glass prices; strategies include direct sourcing and government support. • Ethanol Project: Production expected to start by October; diversifying grain procurement.
Future Projections • Ethanol Business: Capacity of 130 KLPD; profitability aligned with industry standards. • Margin Expectations: Potential return to historical EBITDA margins of 16-18% in 2-3 years.
Market Insights • IMIL Sales Decline: 45% decline in volumes due to policy changes. • New Market Operations: Plans to launch in Punjab and Pondicherry; local manufacturing to reduce costs.
Marketing Strategy • Advertising Approach: Focus on value-for-money branding; targeting salespeople at wine shops. • Premiumization Support: Plans for social media activities and other marketing activations.
Conclusion • Future Outlook: Optimism about capturing market share through unique product offerings and premiumization strategies.
Earnings Performance • Date of Call: May 9, 2023 • Gross Revenue: ₹703 crores for FY23 • Profit After Tax: ₹42 crores • Sales Growth: Significant growth in IMIL and IMFL categories despite rising raw material costs.
Cost Pressures • Raw Material Costs: • Rice prices increased from ₹12-13,000/tonne to ₹20-23,000/tonne. • Glass prices rose by approximately 40%. • EBITDA Margins: Declined due to rising costs; projected gross margins for FY24 around 46.66%.
Strategic Initiatives • Product Launches: Introduction of premium products, including gin and blended Scotch. • Ethanol Project: Expected to commence production in FY24 with strong demand anticipated. • Dividend Proposal: ₹1 per share.
Market Expansion • Geographical Targeting: Plans to expand into West Bengal, Odisha, and Goa. • IMFL Growth: 83% increase attributed to aggressive marketing and favorable market conditions.
Marketing and Sales Strategy • Marketing Budget: ₹25-30 lakhs allocated for new premium brand promotion. • Focus on Value-Added Products: Shift from commodity-driven to value-added products, now 35-40% of top line.
Future Projections • Revenue Growth: Targeting double-digit revenue growth for FY24. • EBITDA Growth: Expected double-digit growth primarily from volume increases.
Capital Expenditure (CAPEX) • Previous Year’s CAPEX: ₹100 crores deployed, primarily for ethanol plant. • Future CAPEX Plans: Additional ₹50 crores projected for the next financial year, including a new bottling line.
Conclusion • Overall Performance: Positive outlook on product performance and market positioning. • Investor Engagement: Encouragement for further inquiries through Investor Relationship Manager.
Earnings Call Overview • Date: February 14, 2023 • Submitted to: BSE and NSE on February 20, 2023 • Hosted by: Valorem Advisors • Key Management: Tushar Bhandari (Whole Time Director), Ankit Agarwal (CFO)
Sales Strategy and Market Conditions • Aggressive sales strategy to increase market share despite: • Lower sales realizations • Inflationary pressures on key inputs (rice, coal) • EBITDA margins affected, but operational improvements are ongoing. • Optimism about a new tax plan potentially boosting disposable income.
Financial Highlights • 13% year-on-year increase in net revenue for Q3. • Profit after tax reported at 11 crores.
Q&A Session Insights • Raw Material Prices: • Inflation impact discussed, particularly on coal and grains. • Strategies to mitigate pressures include direct purchasing and innovative packaging. • Expected stable margins around 8-10%.
• Sales Performance: • Significant sales increases in Madhya Pradesh, with a 90% rise in IMFL sales. • Need for expansion into other states to sustain growth.
• Margin Pressures: • Challenges due to commodity price increases regulated by state authorities. • Importance of government price approvals emphasized.
Strategic Initiatives • Launch of super-premium gin and whiskey to enhance margins. • Ongoing merger process with expectations for SEBI approval by March. • Anticipated benefits from the merger for shareholders and brand synergy.
Capital Expenditure Plans • Total capex of approximately 150 crores for FY2024 for an ethanol plant and bottling unit. • Focus on penetrating untapped markets and improving profitability of proprietary brands.
Merger with Mount Everest • Post-merger promoter shareholding expected to increase to 82%. • Shift in focus from B2B to B2C post-merger. • Mount Everest's strong market presence and expansion plans discussed.
Future Outlook • Balanced revenue contribution anticipated from beer and IMFL. • Cautious expansion strategy in West Bengal with local bottling partnerships. • Planned capital expenditure for a new bottling plant to support growth in contract manufacturing. • Potential discussions on stock split post-merger, with no immediate plans.