Radico Khaitan Q1 Profit Surges 76% on Strong Premium Liquor Demand

Radico Khaitan Q1 Profit Surges 76% on Strong Premium Liquor Demand

July 28 (Reuters) – Indian liquor maker Radico Khaitan reported a surge in first-quarter profit on Tuesday, as strong ​demand for premium spirits lifted margins.

Consolidated net ‌profit for the quarter ended June 30 rose nearly 76% to 2.3 billion rupees ($24 million) from 1.31 billion ​rupees a year earlier.

• Revenue from operations rose ​10.4% year-on-year to 58.68 billion rupees.
• Expenses rose ⁠8.5% to 55.71 billion rupees.
• The company’s gross margins ​expanded from 43% to 49.1%
• The company remains confident ​of its margin expansion trajectory in fiscal year 2027, despite the U.S.-Iran conflict, it said
• Karnataka, one of India’s highest-tax ​alcohol markets, said in March it would scrap government ​price controls and shift to strength-based excise taxation from April, ‌allowing ⁠companies to set prices while cutting tax slabs

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• The new tax bracket came into effect on May 11.
• “Progressive regulatory reforms in key states, an improving ​policy environment ​and the ⁠sustained shift towards premium brands are creating significant opportunities,” the company said.
• Radico’s premium ​and super-premium spirits volumes were up ​nearly ⁠36%
• Analysts at Jefferies expected the company to sustain momentum on volume across its key brands, particularly the ⁠newly ​launched Morpheus whiskey
• Peer United Spirits reported ​a 51.6% rise in its first-quarter profit

($1 = 95.8325 Indian rupees)

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