Tilaknagar Industries Limited · NSE:TI
Tilaknagar Industries — Q2 & H1 FY24 Earnings Presentation
30 slides from Tilaknagar Industries's earnings presentation, Nov 1, 2023
Slide 1: Tilaknagar Industries Limited Earnings Presentation – Q2 & H1 FY24
Tilaknagar Industries Limited Earnings Presentation – Q2 & H1 FY24 Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Tilaknagar Industries’ future business developments and economic
Slide 3: Q2 & H1 FY24 Performance
Q2 & H1 FY24 PERFORMANCE Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 4: Management commentary
Management commentary Mr. Amit Dahanukar, Chairman & Managing Director “ Our focus over the coming 6-8 quarters will be to increase our market share in existing and new regions through robust growth in our brandy portfolio. “ ❖ Our company achieved YoY volume growth of 17.2% in Q2 FY24 and 27.8% in
Slide 5: Key highlights - Q2FY24
Key highlights - Q2FY24 Total Volumes (lacs cases) NSR (₹ per case) +17% +8% 28.5 24.3 25.1 1,249 1,273 1,179 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Net Revenue (₹ crs) EBITDA (₹ crs) & EBITDA Margin (%) 11.4% 12.6% 13.4% +29% +51% 354 47 304 38 274 31 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Ti
Slide 6: Key highlights – H1FY24
Key highlights – H1FY24 Total Volumes (lacs cases) NSR (₹ per case) +28% +8% 53.6 1,262 1,170 42.0 H1FY23 H1FY24 H1FY23 H1FY24 Revenue (₹ crs) EBITDA (₹ crs) & EBITDA Margin (%) 10.5% 13.0% +31% +61% 658 86 504 53 H1FY23 H1FY24 H1FY23 H1FY24 Tilaknagar Industries Ltd. 6
Slide 7: Consistent growth in volumes
Consistent growth in volumes …Q2FY24 has been the highest selling quarter since FY15 Quarterly volumes (lacs cases) 54% volume growth vs. Q2 FY20 (pre-Covid) 28.4 28.5 26.0 25.1 24.3 18.9 19.5 18.1 18.5 17.6 18.1 18.7 17.7 17.2 16.3 16.5 14.7 14.9 13.8 13.5 11.1 6.0 FY19 FY20 FY21 FY22 FY23 FY24 Q1
Slide 8: Debt reduction journey…
Debt reduction journey… …operating cash flows helping in funding debt repayments as well as working capital requirements Debt Journey (₹ Crs)(a) Debt as of 30-Sep-23(a) 38 1,199 24 126 543 492 449 349 361 250 269 239 188 182 136 141 Kotak Term Loan Vendor Financing Trade Deposits Mar-19 Mar-21 Mar-2
Slide 9: Refinancing of EARC debt through Internal Accruals & Term Loan
Refinancing of EARC debt through Internal Accruals & Term Loan We have refinanced the Edelweiss EARC debt balance of ARC (“EARC”) debt from Internal ₹.176 crores was refinanced with Term Loan to be repaid in 4 years Accruals & a fresh Term Loan facility existing cash reserves & ₹ 130 crores from Kot
Slide 10: Income Statement
Income Statement Particulars (₹ Crs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations (Gross) 750.2 596.1 25.9% 640.0 17.2% 1,390.2 1,076.6 29.1% Excise Duty 395.8 321.6 23.1% 335.9 17.8% 731.7 572.5 27.8% Revenue from Operations (Net) 354.4 274.5 29.1% 304.1 16.5% 6
Slide 11: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ Crs) Particulars (₹ Crs) Sep-23 Mar-23 Sep-23 Mar-23 EQUITY & LIABILITIES ASSETS Equity Non‐Current Assets (a) Equity share capital 191.7 185.3 Property, plant and equipment 407.8 417.5 (b) Other equity 377.6 297.6 Capital work‐in‐progress 0.1 0.1
Slide 12: Cash Flow Statement
Cash Flow Statement Half year ending Half year ending Particulars (₹ Crs) Sep-23 Sep-22 Cash Flow from Operating Activities Profit before Tax 62.8 14.9 Adjustment for Non-Operating Items 32.4 45.7 Operating Profit before Working Capital Changes 95.1 60.6 Changes in Working Capital -48.4 4.0 Cash Gen
Slide 13: “A Warm Welcome”
“A Warm Welcome” …Mansion House Brandy’s new proposition, giving the brandy category the voice, it deserves Tilaknagar Industries Ltd. 13
Slide 14: Disruptive renovation of Blue Lagoon Gin bearing fruit in Assam and West Bengal
Disruptive renovation of Blue Lagoon Gin bearing fruit in Assam and West Bengal Tilaknagar Industries Ltd. 14
Slide 15: MHB is the main sponsor for the biggest talk show in South India
MHB is the main sponsor for the biggest talk show in South India Tilaknagar Industries Ltd. 15
Slide 16: Accolades & Recognition for MHB
Accolades & Recognition for MHB India’s Largest Selling World’s 2nd Fastest Growing Brandy Brand Brandy and World’s 2nd Spirits Brand Champion 2023 Largest Selling Brandy Tilaknagar Industries Ltd. 16
Slide 17: Two millionaire brands in the portfolio
Two millionaire brands in the portfolio MANSION HOUSE COURRIER NAPOLEON India’s largest Our second selling brandy Millionaire brand COURRIER NAPOLEON – OUR 2nd MILLIONAIRE BRAND Achieved millionaire status in FY23 (1.2 mn cases sold in FY23; 50% growth over FY22) Drink responsibly: The consumption o
Slide 18: Company & Industry Overview
COMPANY & INDUSTRY OVERVIEW Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 19: About the Company
About the Company Largest brandy manufacturer in India with presence across all segments of IMFL 1933 19 15+ 93% 9.64mn 86% 90 years since Manufacturing units incorporation & 50+ across 12 states Brands across Share of sales to years of experience in Owned: 4 units products Share of Brandy as % Volu
Slide 20: Our journey
Our journey The turnaround well and truly coming to fruition 1933-2007 2008-2014 2014-2017 2018 onwards o Founded in 1933 as o Acquired subsidiaries Vahni o Expansion project at Prag stalled o Restructuring of debt completed Maharashtra Sugar Mills Ltd. Distilleries (Karnataka), Prag with EARC and o
Slide 21: Brand portfolio
Brand portfolio India’s first premium Super-Premium Mansion House Reserve Courrier Napoleon Brandy flavoured brandy ₹ 1,000 & Above Brandy Green Mansion House Flandy Premium / Semi- New Launch Premium #1 Premium Brandy in India Mansion House Gold Blue Lagoon ₹ 700-1,000 Mansion House Brandy Whisky G
Slide 22: Senior management
Senior management Amit Abhinav Ameya Tarun Dahanukar Gupta Deshpande Behl Chairman & CFO President – Strategy & Corp Dev Vice President – Works Managing Director Previously CFO with Trident Limited Previously Investment Banker with 22+ yrs of alcobev experience Deutsche Bank and BNP Paribas & In Uni
Slide 23: Full Year Financials
FULL YEAR FINANCIALS Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 24: Improving business fundamentals
Improving business fundamentals Premiumisation strategy to enhance margins and cash flows Total Volumes Sold (mn cases) Brandy Sales (mn cases) Share of Brandy to total volumes sold 84% 89% 91% 92% 94% 93% 9.64 8.98 6.64 6.44 6.73 5.92 6.33 5.92 5.86 5.45 4.98 5.03 FY18 FY19 FY20 FY21 FY22 FY23 FY18
Slide 25: Focus on margins and cashflows
Focus on margins and cashflows EBITDA (₹ Crs) and Finance Cost (₹ Crs) and Net Revenues (₹ Crs) EBITDA Margin (%) as % of Net Revenues 1,164 137 112 184 783 152 661 653 56 54 14% 28% 12% 26% 129 578 10% 20% 549 8% 13% 8% 3 71 62 3% 40 0% -8% FY18 FY19 FY20 FY21 FY22 FY23 -52 FY18 FY19 FY20 FY21 FY22
Slide 26: Income Statement
Income Statement Particulars (₹ Crs) Mar-23 Mar-22 Mar-21 Revenue from Operations (Gross) 2,469.3 1,792.1 1,418.4 Excise Duty 1,304.9 1,008.7 869.6 Revenue from Operations (Net) 1,164.4 783.4 548.8 Cost of Material Consumed 633.3 378.0 291.3 Change in Inventories of Finished goods & Work in Progress
Slide 27: Balance Sheet
Balance Sheet Particulars (₹ Crs) Mar-23 Mar-22 Mar-21 ASSETS Non ‐ Current Assets Property, plant and equipment 417.5 438.8 467.8 Capital work‐in‐progress 0.1 100.2 100.1 Right of use assets 2.2 0.2 0.4 Intangible assets 0.3 0.3 0.4 Financial Assets (i) Investments 0.5 0.0 0.0 (ii) Loans 0.1 (iii)
Slide 28: Balance Sheet
Balance Sheet Particulars (₹ Crs) Mar-23 Mar-22 Mar-21 Equity (a) Equity share capital 185.3 158.6 125.4 (b) Other equity 297.6 -25.1 -181.2 Total Equity 482.9 133.5 -55.7 Liabilities Non ‐ Current Liabilities Financial liabilities (i) Borrowings 24 381 459 (ii) Lease liabilities 2.1 0.1 0.1 (iii) O
Slide 29: Cash Flow Statement
Cash Flow Statement Particulars (₹ Crs) Mar-23 Mar-22 Mar-21 Cash Flow from Operating Activities Profit before Tax 149.9 41.2 -38.6 Adjustment for Non-Operating Items 4.7 -86.9 -106.9 Operating Profit before Working Capital Changes 145.2 128.1 68.3 Changes in Working Capital -72.8 -67.6 14.3 Cash Ge
Slide 30: Thank You
For further information, please contact: Company : Tilaknagar Industries Ltd. (BSE: 507205 | NSE: TI) Ameya Deshpande President – Strategy & Corporate Development Email: adeshpande@tilind.com Investor Relations Advisors : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9
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