Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
May 31, 2022
To, BSE Limited Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai 400001 Scrip Code : 507205
To, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051. Symbol : TI
Sub: Earnings Presentation for Audited Financial Results for Quarter and Financial year
ended March 31, 2022
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”), please find attached herewith the Earnings Presentation for the Audited Financial Results for quarter and year ended March 31, 2022.
The same is also available on our website www.tilind.com.
We request you to take the above information on record.
Thanking you,
Yours faithfully,
For Tilaknagar Industries Ltd.
Dipti Todkar Company Secretary & Compliance Officer
Encl: as above
Tilaknagar Industries Ltd. (BSE: 507205 | NSE: TI) 5/31/2022
Earnings Presentation Q4 (Jan to Mar 2022) & FY22
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
1
Q4 & FY22 PERFORMANCE
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
2
Q4 & FY22 – at a glance
Q4 FY22
YoY
QoQ
FY22
YoY
Volumes (cases)
19.5 lacs
13.3%
4.4%
67.3 lacs
23.4%
Revenue (Net) (Rs.)
241 crs
25.3% 17.1%
783 crs
42.8%
Gross Margin
48.8%
437 bps
-423 bps
51.2%
173 bps
▪ Highest quarterly volumes in last 7 years ▪ Market share growth in key states (FY21 vs. 22);
Telangana – 46% to 49% Puducherry – 7% to 14%
▪ Driven by growth in NSR per case: Rs. 1,162 for Q4 FY22 (+12% YoY) Rs. 1,136 for FY22 (+12% YoY)
▪ Favourable product and regional mix but
inflationary pressures on raw material and packaging material costs (especially in H2 FY22) ‒ ENA cost per case increased by 10% QoQ ‒ PM cost per case increased by 10% QoQ
EBITDA (Rs.)
26 crs
151.9% -20.5%
112 crs
107.3%
▪ EBITDA has been impacted by a one-time cost of
Rs. 1.7 crs, ESOP related costs of Rs. 3 crs
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
3
Debt reduction journey…
…working towards near debt-free position by FY24
Debt reduction (Rs. Crs)(a)(b)(c)
Debt as of 31-Mar-22(a)(b)(c)
1,199
Debt reduced by Rs. 94 crs over 4 quarters
543
449
492
46
112
EARC Term Loan
Trade Deposits
291
Other Debt
361
▪ EARC debt is at 9% p.a.
31-Mar-19 Gross debt
31-Mar-21 Gross debt
31-Mar-22 Gross debt
31-Mar-21 Net debt
31-Mar-22 Net debt
(a) Debt adjusted for EARC balance debt of Rs. 130 crs which would be waived off in FY24 on following the repayment schedule (b) Debt adjusted for EARC balance debt of Rs. 34 crs which has been converted to equity in Apr-21 (c) Debt includes interest bearing trade deposits which is a part of Other Financial Liabilities
▪ EARC balance debt of Rs. 130 crs will be waived
off on satisfactory repayment
▪ 81% of EARC Term Loan is repayable in FY24 →
Rs. 54 crs to be repaid in FY23
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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Operational highlights (1/2)
14.9
16.5
17.2
11.1
6.0
Volume (lacs cases)
18.1
18.7
19.5
54.5
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
FY21
168
192
132
135
56
Net Revenue (Rs. Crs)
201
206
241
549
67.3
FY22
783
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
FY21
FY22
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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Operational highlights (2/2)
69
85
85
76
271
Gross Profit (Rs. Crs)
109
118
98
32
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
FY21
19
22
23
10
2
EBITDA (Rs. Crs)
31
32
26
54
401
FY22
112
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
FY21
FY22
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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Management commentary From the desk of Mr. Amit Dahanukar, Chairman & Managing Director
❑ The last few months have witnessed significant global supply chain disruptions leading to tremendous inflationary headwinds, which could
continue to a varying degree in the immediate future
❑ Our mitigation strategies revolve around volume growth, favorable product & regional mix , cost optimization efforts and improved productivity; all
of which, we have proven in the recent past
❑ Going forward, our aim is to build on our brandy portfolio, by increasing market shares in our existing markets of South India as well as drive
growth in nascent brandy markets like East and North East India
❑ Moreover, we will also be launching a very innovative product in the brandy space, which will not only be a refreshing introduction for our existing
customer base, but will also open doors to a far younger and experimental audience – target being promoting brandy as a category and increasing base for brandy
❑ Over the last couple of quarters, we have also become leaner in terms of our balance sheet, having reduced our debt by almost Rs. 100 crs since
Mar-21; and are targeting to become a near debt-free Company by Mar-24
‒ Our plan, at the beginning of FY22, was to achieve this target through a mix of internal accruals and equity fund raise (of ~Rs. 200 crs); we
raised a part of this i.e. Rs. 126 crs in Dec-21
‒ In this Board Meeting, we have announced a preferential issue to our long-term channel partners in important southern states of Kerala, AP and Telangana, raising the balance Rs. 85 crs (at Rs. 72 per equity share / warrant) through a mix of equity shares and warrants (convertible within 12 months from date of allotment); thereby bringing to a close the Company’s ~Rs. 200 crore capital infusion program
❑ Also, happy to share that after a period of 8 years, we have announced a dividend of Rs. 0.10 per equity share
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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Extract of Income Statement
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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(Rs. Crs)Q4 FY22Q4 FY21Y-o-Y growth %Q3 FY22Q-o-Q growth %FY22FY21Y-o-Y growth %REVENUE:Revenue from operationsRevenue from operations (Gross)520.9441.817.9%501.73.8%1,792.11,418.426.3%Other operating incomeLess: Excise Duty279.8249.512.2%295.8-5.4%1,008.7869.616.0%Revenue from Operations (Net)241.1192.325.3%205.917.1%783.4548.842.8%Other income7.87.36.6%1.1600.5%10.511.4-8.3%Total Revenue (I)248.9199.724.6%207.020.2%793.8560.241.7%EXPENSES:(a) Cost of materials consumed120.6102.917.2%99.221.5%378.0291.329.7%(b) Purchases of stock-in-trade0.00.0NM0.0NM0.00.0NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade2.94.0-28.4%-2.5NM4.4-13.9NM(d) Employee benefits expense11.74.4165.7%6.969.1%32.125.227.5%(e) Other expenses80.170.813.2%69.814.7%256.8192.133.6%Total Expenses (II)215.3182.118.2%173.524.1%671.3494.735.7%Profit before interest, tax, depreciation and amortisation (I - II)33.617.691.2%33.50.2%122.665.587.1%Finance costs15.518.7-17.2%15.5-0.2%61.971.0-12.8%Depreciation and amortisation expense8.18.1-0.3%8.2-1.7%32.733.1-1.2%Profit before tax10.0-9.2NM9.82.5%28.0-38.6NMExceptional item13.20.0NM0.0NM13.20.0NMProfit before tax23.2-9.2NM9.8137.5%41.2-38.6NMTax expenses :(a) Current tax0.00.0NM0.0NM0.00.0NM(b) Tax for earlier periods0.0-0.2NM-0.5NM-4.0-0.2NM(c) Deferred tax0.00.0NM0.0NM0.00.0NMTotal tax expense0.0-0.2NM-0.5NM-4.0-0.2NMProfit for the period23.2-9.0NM10.3126.5%45.2-38.4NM Extract of Balance Sheet
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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(Rs. Crs)As at Mar-22As at Mar-21(Rs. Crs)As at Mar-22As at Mar-21ASSETSEQUITY AND LIABILITIESNon-Current AssetsEquityProperty, Plant and Equipment438.8467.8Equity Share Capital158.6125.4Capital Work-in-Progress100.2100.1Other Equity-25.1-181.2Right of Use Assets0.20.4Total Equity133.5-55.7Other Intangible Assets0.30.4Financial AssetsLiabilitiesInvestments0.00.0Non-Current LiabilitiesOther Financial Assets41.429.0Financial LiabilitiesNon-Current Tax Assets (Net)3.13.8Borrowings381.0459.0Other Non-Current Assets9.269.8Lease Liabilities0.10.1Total Non-Current Assets593.3671.3Other Financial Liabilities40.260.2Provisions4.74.3Current AssetsOther Non-Current Liabilities14.530.5Inventories72.372.1Total Non-Current Liabilities440.5554.1Financial AssetsTrade Receivables236.8181.1Current LiabilitiesCash and Cash Equivalents42.744.9Financial LiabilitiesOther Bank Balances27.93.2Borrowings204.0242.9Loans0.00.0Lease Liabilities0.10.5Other Financial Assets17.00.2Trade Payables171.3148.0Other Current Assets23.338.7Other Financial Liabilities17.773.4Total Current Assets420.0340.2Provisions26.329.0Current Tax Liabilities (Net)0.00.0Other Current Liabilities19.819.3Total Current Liabilities439.3513.1TOTAL ASSETS1,013.31,011.5TOTAL EQUITY AND LIABILITIES1,013.31,011.5 COMPANY & INDUSTRY OVERVIEW
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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About the Company
Largest premium brandy manufacturer in India with presence across all segments of IMFL
16
Manufacturing units across 12 states Owned: 4 units Contract manufacturing: 12 units
15+
Brands across products
94%
Share of Brandy as % of total volumes
6.73 mn
Volumes (in cases) sold
86%
Share of sales to South India as % of total volumes
* All data is for FY22
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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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 NAPOLEON
❑ Fast approaching millionaire brand status
(0.8 mn cases sold in FY22)
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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Our strategic focus…
…the way forward
Volume growth
Market share growth(b)
Efficient levels of capacity utilisation
▪ FY22 growth in volumes for MHB and
CNB stands at 24% each ▪ 6 yrs CAGR of 9.1% for MHB ▪ New launches in coming 1-2 quarters
▪ Continued focus on brandy ▪ Market share (as % of brandy) growth
from 12.4% to 16.8%
▪ Market share (as % of IMFL) growth from
2.4% to 3.4%
▪ Pernod Ricard agreements enables efficient capacity utilisation levels ▪ Incremental region-specific growth
enabled through bottling arrangements
Debt repayment and cash flow generation
Resolution of auditor qualifications
▪ Focus on repayment of high-cost debt ▪ Target to become near debt-free by FY24
▪ Focus on taking proactive measures to
resolve all auditor qualifications
(a) The above volume data is for Mansion House Brandy in the states of Telangana, Andhra Pradesh, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 88% of our total volumes (b) Market share growth comparison between FY17 and FY22 in the states of Telangana, Andhra Pradesh, Karnataka, Kerala, Puducherry and Goa
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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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)
Market share growth of 36% over 6 years
Market share growth of 41% over 6 years
Category
MHB
Brandy Segment
Whiskey Segment
IMFL
CAGR
9.1%
2.6%
2.1%
1.9%
MHB: Mansion House Brandy; 6 year CAGR from FY17 to FY22 (a) The above data is for the states of Telangana, AP, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 88% of our total volumes
12.4%
FY17
16.4%
FY21
16.8%
FY22
2.4%
FY17
3.0%
FY21
3.4%
FY22
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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FY22 FINANCIALS
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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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
FY18
6.64
FY19
6.44
FY20
5.45
FY21
6.73
FY22
4.98
FY18
5.92
FY19
5.86
FY20
5.03
FY21
6.33
FY22
Share of Brandy to total volumes sold
NSR per case (Rs.)
Robust sales in South India (mn cases)
83%
87%
86%
86%
86%
904
FY18
985
FY19
1,005
FY20
1,014
FY21
1,136
FY22
4.91
FY18
5.80
FY19
5.51
FY20
4.70
FY21
5.82
FY22
Share of South India sales to total volumes sold
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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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 (%)
578
FY18
661
FY19
653
FY20
EBITDA (Rs. Crs) and EBITDA Margin (%)
8%
56
3 0%
FY18
FY19
-52
-8%
FY20
549
FY21
10%
783
FY22
14%
54
112
51%
52%
293
FY18
342
FY19
46%
301
FY20
49%
51%
271
FY21
401
FY22
Finance Cost (Rs. Crs) and as % of Net Revenues
26%
28%
20%
129
FY20
13%
71
FY21
8%
62
FY22
FY21
FY22
152
FY18
184
FY19
(a) EBITDA for FY20 is not comparable due to write-offs impacting EBITDA
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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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 performance. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.
The information and opinions contained in this presentation are current. The Company undertakes no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.
Tilaknagar Industries | Q4 & FY22 Earnings Presentation
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For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com
THANK YOU