Radico Khaitan, a leading Indian liquor manufacturer, has reported a 13.4% increase in consolidated net profit for the first quarter of the financial year 2024-25 (Q1 FY25). This growth is attributed to strong sales of premium alcohol products. This reflects the growing trend of premiumization in the Indian alcohol market.
Radico Khaitan Limited, established in 1943 as Rampur Distillery & Chemical Company Ltd., is one of the oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL) in India.
Key highlights of Radico Khaitan’s Q1 FY25 results:
Net Profit: Increased by 13.4% to ₹77.38 crore compared to ₹68.26 crore in the same quarter last year.
Revenue from Operations: Grew by 9.12% to ₹4,265.62 crore, up from ₹3,908.94 crore in the corresponding quarter last year.
Premiumization: The company’s focus on premium products, including Rampur single malt, Magic Moments Vodka, and Jaisalmer Indian Craft Gin, has driven revenue growth. The Prestige & Above category volume grew 14.3% during the quarter.
Total Expenses: Increased by 8.93% to ₹4,167.92 crore.
While the total IMFL (Indian-made foreign liquor) volume decreased by 4% in the quarter, the growth in the premium segment compensated for this decline.
This positive performance by Radico Khaitan reflects the ongoing trend of premiumization in the Indian alcohol market, where consumers are increasingly opting for higher-priced, premium brands. The company’s strategic focus on this segment has proven to be successful in driving profitability.
Overall, Radico Khaitan is a significant player in the Indian IMFL market. Its diverse brand portfolio, focus on premiumization, and strong distribution network make it an attractive prospect for investors interested in the alcoholic beverage industry.