Tilaknagar Industries Limited · NSE:TI
Tilaknagar Industries — Q1 FY23 Earnings Presentation
21 slides from Tilaknagar Industries's earnings presentation, Aug 11, 2022
Slide 1: Cover letter to stock exchanges
August 11, 2022 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, Dalai Street, Bandra-Kurla Complex, Bandra (East), Mumbai 400001 Mumbai-400 051. Scrip Code : 507205 Symbol : TI Sub: Earnings Presentation for unaudited Financial Re
Slide 2: Q1 FY23 Earnings Presentation
Tilaknagar Industries Ltd. (BSE: 507205 | NSE: TI) 8/11/2022 Earnings Presentation Q1 FY23 (Apr to Jun 2022) Tilaknagar Industries | Q1 FY23 Earnings Presentation 1
Slide 3: Q1 FY23 Performance
Q1 FY23 PERFORMANCE Tilaknagar Industries | Q1 FY23 Earnings Presentation 2
Slide 4: Q1 FY23 – at a glance
Q1 FY23 – at a glance Q1 FY23 Q1 FY22 YoY Q4 FY22 QoQ Volumes ▪ Strong growth in what has historically been the 17.7 lacs 11.1 lacs 59.2% 19.5 lacs 9.4% weakest quarter for TI (cases) ▪ Volumes above pre-Covid levels ▪ NSR per case largely stable at Rs. 1,157 for Q1 Revenue 230 crs 135 crs 69.7% 241
Slide 5: Debt reduction journey
Debt reduction journey… …working towards near net debt-free position by FY24 Debt reduction (Rs. Crs)(a)(b)(c) Debt as of 30-Jun-22(a)(b)(c) 1,199 42 EARC Term Loan 60 High-cost trade deposits Trade Deposits (interest rate of 18-20% p.a.) of Rs. 52 crs repaid in Q1 FY23 278 Other Debt 543 492 449 38
Slide 6: Significant volume growth over pre-Covid levels
Significant volume growth over pre-Covid levels …strong start to FY23 Volume (lacs cases) 71% 41% 64% 91% Q1 volumes as % of preceding quarter i.e. Q4 of previous financial year 17.7 13.5 ▪ Volumes have significantly surpassed pre-Covid levels 11.1 ▪ Q1 FY23 vs. Q1 FY20: 6.0 ‒ Overall volumes 31% ‒
Slide 7: Operational highlights (1/2)
Operational highlights (1/2) Volume (lacs cases) 18.7 19.5 67.3 17.2 18.1 17.7 16.5 14.9 54.5 11.1 6.0 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Net Revenue (Rs. Crs) 241 783 230 201 206 192 168 549 132 135 56 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3
Slide 8: Operational highlights (2/2)
Operational highlights (2/2) Gross Profit (Rs. Crs) 118 401 109 98 103 85 85 76 271 69 32 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY21 FY22 EBITDA (Rs. Crs) 32 112 31 26 22 23 22 19 54 10 2 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 FY21 F
Slide 9: Management commentary
Management commentary From the desk of Mr. Amit Dahanukar, Chairman & Managing Director ❑ As expected, the inflationary headwinds persist ‒ While we expect these headwinds to abate in the medium term, we estimate that these pressures will persist in the immediate short term; over the next quarter or
Slide 10: Extract of Income Statement
Extract of Income Statement Y-o-Y Q-o-Q Y-o-Y (Rs. Crs) Q1 FY23 Q1 FY22 growth % Q4 FY22 growth % FY22 FY21 growth % Revenue from operations (Gross) 480.5 324.1 48.2% 520.9 -7.8% 1,792.1 1,418.4 26.3% Less: Excise Duty 251.0 188.8 32.9% 279.8 -10.3% 1,008.7 869.6 16.0% Revenue from Operations (Net)
Slide 11: Recent Product Developments
Recent Product Developments Removal of Product Launch Monocartons ▪ Launch of Mansion House Flavoured Brandy; India’s First Premium Flavoured Brandy ▪ An inclusive drink for all; across age- ✓ Focus on sustainability groups, genders, for all occasions ▪ Available in three flavours ✓ Cost saving meas
Slide 12: Company & Industry Overview
COMPANY & INDUSTRY OVERVIEW Tilaknagar Industries | Q1 FY23 Earnings Presentation 11
Slide 13: About the Company
About the Company Largest premium brandy manufacturer in India with presence across all segments of IMFL Manufacturing units across 12 states Share of Brandy as % 16 Owned: 4 units 15+ Brands across products 94% of total volumes Contract manufacturing: 12 units 6.73 Volumes (in cases) Share of sales
Slide 14: We sell millions of cases across India
We sell millions of cases across India MANSION HOUSE ❑ Mansion House is a millionaire brand (more than 5.5 mn cases sold in FY22) ❑ Mansion House is the highest selling premium brandy in India ❑ Manufactured across all units ❑ A brand with a high brand loyalty driving repeat purchases COURRIER NAPOL
Slide 15: Our strategic focus
Our strategic focus… …the way forward Volume growth Market share growth(b) Efficient levels of capacity utilisation ▪ FY22 growth in volumes for MHB and ▪ Continued focus on brandy ▪ Pernod Ricard agreements enables CNB stands at 24% each ▪ Market share (as % of brandy) growth efficient capacity uti
Slide 16: MHB and MHB Brandy segment growing faster
MHB and MHB Brandy segment growing faster… …than overall Brandy, Whiskey and IMFL MHB vs. Industry Growth (a) MHB market share as % of brandy (a) MHB market share as % of IMFL (a) Category CAGR Market share growth of 36% over 6 years Market share growth of 41% over 6 years MHB 9.1% Brandy Segment 2.
Slide 17: FY22 Financials
FY22 FINANCIALS Tilaknagar Industries | Q1 FY23 Earnings Presentation 16
Slide 18: Improving business fundamentals
Improving business fundamentals Premiumisation strategy to enhance margins and cash flows Total Volumes Sold (mn cases) Brandy Sales (mn cases) 84% 89% 91% 92% 94% 5.92 6.64 6.44 5.45 6.73 4.98 5.92 5.86 5.03 6.33 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Share of Brandy to total volumes sol
Slide 19: Focus on margins and cashflows
Focus on margins and cashflows Most of write-offs impacting EBITDA have been undertaken Net Revenues (Rs. Crs) Gross Profit (Rs. Crs) and Gross Margin (%) 51% 52% 49% 51% 46% 578 661 653 549 783 293 342 301 271 401 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (Rs. Crs) and EBITDA Margin
Slide 20: 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 21: Thank You
For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com THANK YOU
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