Tilaknagar Industries Limited · NSE:TI
Tilaknagar Industries — Q4 FY24 Earnings Presentation
29 slides from Tilaknagar Industries's earnings presentation, May 21, 2024
Slide 1: Tilaknagar Industries Limited Earnings Presentation – Q4 & FY24
Tilaknagar Industries Limited Earnings Presentation – Q4 & 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: Q4 & FY24 Performance
Q4 & FY24 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 “ Mr. Amit Dahanukar, Chairman & Managing Director “ Business momentum continues to build in line with growth and premiumization in Brandy. New product introduction and market share gains adding to customer base “ ❖ Fastest growing IMFL company of scale, for 2nd
Slide 5: Key takeaways for year gone by
Key takeaways for year gone by Business and industry related ▪ TI has seen volume growth of 16% YoY vis-à-vis industry growth of 2-3% ▪ 4th largest IMFL company in strategic state of Telangana and 3rd largest P&A player in the state; achieved visibility of 30% across customer touchpoints in the stat
Slide 6: Key highlights
Key highlights Total Volumes (lacs cases) NSR (₹ per case) Quarter Full Year Quarter Full Year +15.7% +0.4% +6.3% +7.1% 28.5 111.6 28.4 120.0 96.4 1,400 1,216 1,293 1,282 30.0 110.0 1,400 28.0 26.0 100.0 1,300 1,200 1,300 1,197 1,200 24.0 90.0 1,100 1,100 22.0 1,000 80.0 1,000 20.0 900 70.0 900 18.0
Slide 7: The fastest growing IMFL company in India for 2nd year running
The fastest growing IMFL company in India for 2nd year running 4 yr (FY20-24) volume CAGR of 15% Quarterly volumes (lacs cases) 29.5 28.4 28.5 28.5 26.0 25.1 24.3 19.5 18.5 17.6 18.1 18.7 17.7 16.5 17.2 14.7 14.9 13.5 11.1 6.0 FY20 FY21 FY22 FY23 FY24 Tilaknagar Industries Ltd. 7
Slide 8: Debt reduction journey
Debt reduction journey Debt Journey (₹ Crs)(a) Debt as of 31-Mar-24 (₹ Crs)(a) 1,199 37 66 16 543 492 449 361 250 239 188 164 182 119 136 141 119 Kotak Term Loan Vendor Financing 74 Trade Deposits Mar-19 Mar-21 Mar-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-21 Mar-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-2
Slide 9: CRISIL assigns A-/Stable rating
CRISIL assigns A-/Stable rating Total bank loan facilities rated Long term rating ₹ 200 crore CRISIL A-/Stable (Assigned) ▪ Rating assigned in January 2024 ▪ Rating assigned for term loan facility of upto ₹ 150 crore and for working capital facility of upto ₹ 50 crore ▪ The rating reflects the heath
Slide 10: Income Statement
Income Statement Particulars (₹ Crs) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations (Gross) 770.6 717.2 7.4% 797.5 -3.4% 2,958.3 2,469.3 19.8% Excise Duty 411.8 359.8 14.4% 420.9 -2.2% 1,564.3 1,304.9 19.9% Revenue from Operations (Net) 358.8 357.4 0.4% 376.7 -4.8% 1,394
Slide 11: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ Crs) Particulars (₹ Crs) Mar-24 Mar-23 Mar-24 Mar-23 EQUITY & LIABILITIES ASSETS Equity Non‐Current Assets (a) Equity share capital 192.7 185.3 Property, plant and equipment 394.1 417.5 (b) Other equity 461.2 297.6 Capital work‐in‐progress 0.3 0.1
Slide 12: 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 13: 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 14: 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 15: Mansion House Brandy
Mansion House Brandy… …brand building activities to support future growth ATL activities to give a voice, not only to Brand MHB but also the brandy category: ▪ TI’s first large-scale digital initiative ▪ ‘A Warm Welcome’ – Mansion House Brandy’s brand proposition, a first step towards giving brandy
Slide 16: Mansion House Flandy
Mansion House Flandy… …building foundation blocks to a more vibrant brandy scene ATL activities positioning brandy as an aspirational, fun drink across demographics: ▪ TI’s first large scale brand anthem, launched across digital platforms ▪ ‘Welcome The Now’ – Mansion House Flandy’s brand propositio
Slide 17: Awards & Recognition
AWARDS & RECOGNITION Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 18: Multiple awards at the Spiritz Conclave & Achievers' Awards 2023
Multiple awards at the Spiritz Conclave & Achievers’ Awards 2023 Leader of the year Company of the year Brand promotion – Digital space Tilaknagar Industries Ltd. 18
Slide 19: Mansion House Brandy
Mansion House Brandy… …One of the fastest growing alcobev and largest selling brandy brands globally 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. 19
Slide 20: Company & Industry Overview
COMPANY & INDUSTRY OVERVIEW Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 21: About the Company
About the Company Largest brandy manufacturer in India with presence across all segments of IMFL 1933 19 15+ 94% 11.2mn 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 22: 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 23: Brand portfolio
Brand portfolio New Launch 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 Gold Blue Lagoon ₹ 700-1,000 Mansio
Slide 24: 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 25: 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 23+ yrs of alcobev experience Deutsche Bank and BNP Paribas & In Uni
Slide 26: Full Year Financials
FULL YEAR FINANCIALS Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
Slide 27: 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 28: 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 29: 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 +91 96194 44
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