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    Volumes significantly higher levels compared to pre-Covid times, December best month in a decade - Tilaknagar Industries

    Synopsis

    The maker of country's biggest premium brand Mansion House had sales of Rs303 crore with net profit of Rs25 crore, a 139% jump over a year ago. Sales were mainly driven by volumes which surged 39% and the company said December saw its best month in terms of volumes in a decade.

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    Tilaknagar Industries (TIL) volume sales significantly in higher levels
    Tilaknagar Industries (TIL) said volume sales are at significantly higher levels compared to precovid level after posting a 47% increase in net revenues while net profit more than doubled during the quarter ended December.

    The maker of country's biggest premium brand Mansion House had sales of Rs 303 crore with net profit of Rs25 crore, a 139% jump over a year ago. Sales were mainly driven by volumes which surged 39% and the company said December saw its best month in terms of volumes in a decade.

    "Our aim to open up the brandy category to a young, experimental and aspirational audience continues and we will be looking at launching more premium and aspirational products over the next few quarters," said Amit Dahanukar, Chairman and managing director at TIL adding that despite the two price increases in glass costs faced by the industry, it expanded EBITDA to over Rs40 crore. "Our existing EBITDA expansion has been purely on the back of our mitigation strategies against inflation; these include focus on profitable brands, favorable product and regional mix, cost optimization efforts and improved productivity."

    Last year, TIL 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. Founded in 1933 as Maharashtra Sugar Mills, Dahanukar-led TIL is among India’s ten largest distillers.

    The company said its debt reduction strategy is also on-track and it has reduced debt by Rs 126 crore in the 9 months of the financial year with a target to become near net debt free by FY24. In the second half of December 2022, it also completed the Rs 100 crore preferential issue to Think Investments.

    TIL said it expects the inflationary headwinds to abate in the medium term, but estimates that pressures will persist in the immediate short term. "We have yet to see any meaningful price increase in any of the states we are present in, but are very hopeful that we will get industry-wide price increases in our key states," added Dahanukar.

    Mansion House sold more than 5.5 mn cases during the first nine months of FY23. The brand outsold Diageo’s McDowell’s No 1 to become the country’s biggest brandy brand by volume in 2021.


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