Slide 1: Tilaknagar Industries Limited Earnings Presentation – Q2 & H1 FY25
Tilaknagar Industries Limited Earnings Presentation – Q2 & H1 FY25 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 FY25 Performance
Q2 & H1 FY25 PERFORMANCE Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 4: Management commentary on performance
Management commentary on performance “ I am happy to share that we have turned net debt free as of September 2024. From a peak debt of more than Rs. 1,100 crore in March 2019, to achieving net debt free status, we have come a long way. This transformation was achieved through a combination of financ
Slide 5: Q2 FY25 – Key highlights
Q2 FY25 – Key highlights Financial performance: ▪ Achieved highest ever quarterly EBITDA in Q2 at Rs. 66 crs, YoY growth of 39.1% ▪ EBITDA margin at 17.6%, 422 bps expansion YoY ▪ Profit after tax at Rs. 58 crs, YoY growth of 82%; driven by reduction in finance costs ▪ Net debt free as of September
Slide 6: Q2 & H1 FY25 – Financial performance
Q2 & H1 FY25 – Financial performance NSR (₹ per case) Revenue (₹ crs) Quarter Half Year Quarter Half Year +0.2% +0.2% +4.5% +5.8% 1,400 1,273 1,274 688 1,264 700 1,300 1,400 1,300 1,262 440 354 375 680 658 390 660 1,200 1,200 640 340 1,100 1,100 620 290 1,000 1,000 600 240 900 900 580 190 800 800 56
Slide 7: Q2 FY25 an aberration due to industry-wide disruptions
Q2 FY25 an aberration due to industry-wide disruptions… …strong growth trajectory to return to past levels going forward TI was the fastest growing IMFL company of scale in FY23 and FY24 Quarterly volumes (lacs cases) Q2 FY25 volume growth at 3.1% 29.5 29.4 28.4 28.5 28.5 26.0 25.4 25.1 24.3 19.5 18
Slide 8: Net debt free status achieved well before target
Net debt free status achieved well before target Debt Journey (₹ Crs)(a) Debt as of 30-Sept-24 (₹ Crs)(a) 1,200 1,119 1,000 15.8 0.4 37 800 66 600 543 492 449 16 39.2 400 361 250 239 Net debt 36.9 188 164 182 free 200 119 136 141 119 97 92 74 43 -25 0 Kotak Term Loan Vendor Financing Trade Deposits
Slide 9: Income Statement
Income Statement Particulars (₹ Crs) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Revenue from Operations (Gross) 823.3 750.2 9.7% 664.9 23.8% 1,488.1 1,390.2 7.0% Excise Duty 448.5 395.8 13.3% 351.7 27.5% 800.2 731.7 9.4% Revenue from Operations (Net) 374.9 354.4 5.8% 313.2 19.7% 687.9
Slide 10: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ Crs) Particulars (₹ Crs) Sept-24 Mar-24 Sept-24 Mar-24 EQUITY & LIABILITIES ASSETS Equity Non‐Current Assets (a) Equity share capital 193.0 192.7 Property, plant and equipment 381.6 394.1 (b) Other equity 552.4 461.2 Capital work‐in‐progress 0.3 0
Slide 11: Cash Flow
Cash Flow Half year ending Half year ending Particulars (₹ Crs) Sept-24 Sept-23 Cash Flow from Operating Activities Profit before Tax 98.3 62.8 Adjustment for Non-Operating items 24.7 32.4 Operating Profit before Working Capital Changes 123.0 95.1 Changes in Working Capital (11.3) (48.4) Less: Direc
Slide 12: Launch of Mansion House Whisky in its New Avatar
Launch of Mansion House Whisky in its New Avatar • Mansion House Gold Barrel Whisky (“MHW”) launched in Assam, with a focus on distribution-strong states to begin with • MHW provides us with an avenue to further expand into the East and the North-East markets, with a strong play in the largest IMFL
Slide 13: Investment in Spaceman Spirits Lab Pvt. Ltd. (SSL)
Investment in Spaceman Spirits Lab Pvt. Ltd. (“SSL”) ▪ SSL is the maker of Samsara Gin and Sitara Rum Deal highlights: ▪ Investment of Rs. 13.15 crs across 3 tranches over an 18 months’ period ▪ Post all 3 investments, TI shareholding on a fully diluted basis in SSL will increase to 20% from 10% pre
Slide 14: Investment in Round the Cocktails Pvt. Ltd. (RTC)
Investment in Round the Cocktails Pvt. Ltd. (“RTC”) ▪ RTC is the maker of Bartisans, a “ready-to-pour” premium mixer brand, made with all-natural ingredients Deal highlights: ▪ Aggregate investment of Rs. 8 crs for a 36.2% stake on a fully diluted basis ▪ Upon RTC achieving certain pre-agreed milest
Slide 15: Key strategic priorities
Key strategic priorities… Enhanced Category operating ownership management ▪ Brandy price ▪ Better growth laddering ▪ Better margins ▪ Investment in marketing Stronger Calibrated Balance Sheet flanking ▪ Disciplined debt ▪ Incrementally looking management at opportunities ▪ Focus on efficient levels
Slide 16: Meeting need gaps across premium price points in brandy
Meeting need gaps across premium price points in brandy… …Puducherry is the first state for launch of Mansion House Chambers Offerings across multiple P&A segments in Brandy Mansion House Courrier Napoleon Mansion House Mansion House Courrier Napoleon Chambers Brandy Green Flandy Brandy Brandy Red +
Slide 17: Courrier Napoleon Brandy becomes 3rd fastest growing spirits brand globally
Courrier Napoleon Brandy becomes 3rd fastest growing spirits brand globally in 2023… ...Mansion House Brandy 4th fastest growing brandy brand globally and largest selling brandy in India Growth rankings Volume rankings 4th 21th 1st 2nd 8th 25th Fastest Fastest Largest Largest Largest selling Largest
Slide 18: Marketing Initiatives
MARKETING INITIATIVES Giving Brandy a ‘share of voice’ commensurate to its ‘share of market’ Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 19: Mansion House Boyzzzz… A web series
Mansion House Boyzzzz… ...A web series ▪ 26 short stories – 2 episodes released each week ▪ Launched on 8th October 2024 (new episode released every Tuesday and Friday) ▪ Average duration of 5-8 mins per episode ▪ Target audience from Andhra Pradesh and Telangana ▪ Shot in Telugu language Watch full
Slide 20: The Warm Embrace of Fatherhood
“The Warm Embrace of Fatherhood” An ode to celebrating the #DadInEveryMan Performance Marketing Father’s Day DVC activation on Campaign Results all MH Social channels Total Reach 15.92 Mn+ Total Impressions “From bedtime stories to life lessons, a 31.25 Mn+ Father's love is a Father's love - irrepla
Slide 21: Awards & Recognition
AWARDS & RECOGNITION Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 22: Multiple awards at the Spiritz Achievers' & Selection Awards 2024
Multiple awards at the Spiritz Achievers’ & Selection Awards 2024 Mansion House Mansion House Green Mansion House Mansion House Gold Courrier Napoleon Orange Flavoured Brandy Apple Flavoured Brandy Chambers Brandy Barrel Whisky French Brandy Green Product debut of the Year Brand promotion – Digital
Slide 23: Campaign Awards and Accolades
A Warm Welcome A Warm Welcome’ – Mansion Campaign House Brandy’s brand proposition, Awards and a first step towards giving brandy the “share of voice” commensurate Accolades to its “share of market” The Video Media Awards and Summit 2024 Masters of Modern Marketing Awards 2024 Marketers Excellence A
Slide 24: Campaign Awards and Accolades
Welcome The Now TI’s first large scale brand anthem, launched across digital platforms. Campaign ‘Welcome The Now’ – Mansion Awards and House Flandy’s brand proposition, giving brandy a more aspirational, Accolades fun, inclusive and versatile positioning Masters of Modern Marketing Awards 2024 Vide
Slide 25: Company & Industry Overview
COMPANY & INDUSTRY OVERVIEW Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 26: About the Company
About the Company Largest brandy manufacturer in India with presence across all segments of IMFL 1933 18 15+ 94% 11.2mn 86% 90 years since Manufacturing units incorporation & 50+ across 10 states Brands across Share of sales to years of experience in Owned: 4 units products Share of Brandy as % Volu
Slide 27: 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 Maharashtra o Acquired subsidiaries Vahni o Expansion project at Prag stalled o Restructuring of debt completed with Sugar Mills Ltd. (MSML) to Distilleries (Karnataka), Prag
Slide 28: Brand portfolio
Brand portfolio India’s first premium Super-Premium Mansion House Mansion House Courrier Napoleon flavoured brandy ₹ 1,000 & Above Reserve Brandy Chambers Brandy Green Mansion House Flandy Premium / Semi- Premium #1 Premium Brandy in India Mansion House Blue Lagoon ₹ 700-1,000 Mansion House Brandy G
Slide 29: Two millionaire brands in the portfolio
Two millionaire brands in the portfolio MANSION HOUSE COURRIER NAPOLEON India’s largest 2nd fastest and World’s growing brandy second largest and 3rd fastest selling brandy growing spirits brand Globally COURRIER NAPOLEON – OUR 2nd MILLIONAIRE BRAND Achieved millionaire status in FY23 (1.2 mn cases
Slide 30: Senior management
Senior management Amit Dahanukar Shivani Dahanukar Abhinav Gupta Ameya Deshpande Chairman & Executive Director CFO President – Strategy & Corp Dev Managing Director Previously CFO with Previously Investment Banker with Trident Limited Deutsche Bank and BNP Paribas & Co-founder at Authenticook Ahmed
Slide 31: Full Year Financials
FULL YEAR FINANCIALS Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 32: 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 89% 91% 92% 94% 93% 94% 12 10.44 10 8.98 12 11.16 9.64 6.33 8 10 5.92 5.86 8 6.64 6.44 6.73 6 5.03 6 5.45 4 4 2 2 0 0
Slide 33: Focus on margins and cashflows
Focus on margins and cashflows Net Revenues (₹ Crs) EBITDA (₹ Crs) and Finance Cost (₹ Crs) and EBITDA Margin (%) As % of Net Revenues 1600 26.5 1,394 1400 14.3 13.3 1,164 11.8 1200 9.9 19.8 8.1 1000 783 12.9 800 661 653 600 549 56 54 112 137 185 7.9 -52 400 3.5 200 1.9 -8.0 184 129 71 62 40 27 0 FY
Slide 34: 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 : CDR India Mr. Siddharth Rangnekar Mr. Mitesh Jain +91 97699 19966 Siddharth@cd