TINSE10 November 2022

Tilaknagar Industries Limited has informed the Exchange about Investor Presentation

Tilaknagar Industries Limited

November 10, 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 unaudited Financial Results for quarter ended

September 30, 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 unaudited Financial Results for quarter ended September 30, 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) 11/10/2022

Earnings Presentation Q2 (Jul to Sep 2022) & H1 FY23

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Q2 & H1 FY23 PERFORMANCE

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Q2 FY23 – at a glance

Business performance (in lacs):

Q2 FY23

Q2 FY22

Brandy volumes

Others

Total volumes

NSR (Rs. per case)

Financial performance (Rs. Crs):

Revenue from operations (Net)

Gross profit

Gross margin (%)

EBITDA

EBITDA margin (%)

EBIT

Profit / (Loss) after tax

22.7

1.6

24.3

1,179

274.50

134.82

49.1%

31.43

11.4%

23.21

13.88

17.0

1.0

18.1

1,081

201.11

98.23

48.8%

30.54

15.2%

22.29

11.30

Y-o-Y growth

33.4%

56.9%

34.7%

9.1%

36.5%

37.2%

27 bps

2.9%

-373 bps

4.1%

22.8%

Q1 FY23

16.5

1.2

17.7

1,157

229.55

103.48

45.1%

21.72

9.5%

13.67

1.04

Q-o-Q growth

37.8%

36.0%

37.7%

1.9%

19.6%

30.3%

403 bps

44.7%

199 bps

69.8%

1,240.4%

H1 FY23

H1 FY22

39.2

2.8

42.0

1,170

504.05

238.30

47.3%

53.15

10.5%

36.88

14.92

27.5

1.7

29.2

1,114

336.42

174.18

51.8%

53.91

16.0%

37.47

11.67

Y-o-Y growth

42.8%

64.1%

44.0%

5.0%

49.8%

36.8%

-450 bps

-1.4%

-548 bps

-1.6%

27.8%

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Debt reduction journey…

…working towards near net debt-free position by FY24

Debt reduction (Rs. Crs)(a)(b)(c)

Debt as of 30-Sep-22(a)(b)(c)

1,199

High-cost trade deposits (interest rate of 18-20% p.a.) of Rs. 64 crs repaid in H1 FY23

543

449

492

380

349

EARC Term Loan

Trade Deposits

264

Vendor Financing

361

299

269

▪ EARC debt is at 9% p.a.

▪ EARC balance debt of Rs. 130 crs will be waived

off on satisfactory repayment

31-Mar-19 31-Mar-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Mar-21 31-Mar-22 30-Jun-22 30-Sep-22

Gross debt

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

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Highest quarterly volumes since FY14

Volume (lacs cases)

18.9

18.1

18.5

17.6

16.3

13.8

13.5

14.7

14.9

17.2

16.5

18.1

18.7

19.5

17.7

11.1

6.0

24.3

▪ 35% volume growth on YoY basis ▪ 31% volume

growth vs. Q2 FY20 (pre- Covid)

FY19

FY20

FY21

FY22

FY23

Q1 Q2 Q3 Q4

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Operational highlights

Net Revenue (Rs. Crs)

168

192

132

135

201

206

241

230

275

504

336

189

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

H1 FY21

H1 FY22

H1 FY23

EBITDA (Rs. Crs)

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

H1 FY21

H1 FY22

H1 FY23

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Management commentary From the desk of Mr. Amit Dahanukar, Chairman & Managing Director

❑ We are very proud to have delivered a very strong quarter driven by our highest quarterly volumes in the past 8+ years

❑ While inflationary headwinds persist, we have been able to expand our EBITDA margin compared to Q1 FY23 on the back of regional

mix improvement

‒ 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 two

‒ Our aim is to build on our growth through new product innovations and regional expansions, with an eye on sustainable profitability

❑ As mentioned in our previous earnings presentation, we continue to adopt multiple mitigation strategies including focus on profitable

brands, favorable product & regional mix, cost optimization efforts and improved productivity

‒ While certain states have given some price increases, we have seen limited impact of the same, due to our low presence in these

states

‒ We are hopeful that we will get industry-wide price increases in our key states

❑ In FY23, we have launched 2 new premium products under the Mansion House family of brands; Mansion House Flavoured Brandy and

Mansion House Reserve, with an aim to open up the brandy category to a young, experimental and aspirational audience

❑ Our debt reduction strategy is also on-track and we expect to be near net debt free by end of FY24

❑ I am also glad to share that, today, we have announced a preferential issue to raise an amount of Rs. 100 crs from Think Investments

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Extract of Income Statement

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

(Rs. Crs)Q2 FY23Q2 FY22Y-o-Y growth %Q1 FY23Q-o-Q growth %H1 FY23H1 FY22Y-o-Y growth %Revenue from operations (Gross)596.05445.3533.8%480.5224.0%1,076.57769.4839.9%Less: Excise Duty321.55244.2331.7%250.9728.1%572.53433.0732.2%Revenue from Operations (Net)274.50201.1136.5%229.5519.6%504.05336.4249.8%Other income0.591.33-55.7%0.67-12.1%1.261.52-17.5%Total Revenue (I)275.09202.4435.9%230.2219.5%505.30337.9449.5%EXPENSES:(a) Cost of materials consumed147.5194.3656.3%121.4321.5%268.94158.1670.0%(b) Purchases of stock-in-trade0.000.00NM0.00NM0.000.00NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade-7.838.52NM4.63NM-3.194.07NM(d) Employee benefits expense8.986.2942.8%8.495.8%17.4713.4230.2%(e) Other expenses94.4161.4153.7%73.2828.8%167.68106.8556.9%Total Expenses (II)243.07170.5742.5%207.8317.0%450.90282.5059.6%Profit before interest, tax, depreciation and amortisation (I - II)32.0231.860.5%22.3943.0%54.4055.43-1.9%Finance costs9.9115.83-37.4%13.30-25.5%23.2130.84-24.7%Depreciation and amortisation expense8.228.25-0.4%8.052.2%16.2716.44-1.1%Profit before tax13.887.7978.3%1.041240.4%14.928.1682.9%Tax expenses :(a) Current tax0.000.00NM0.00NM0.000.00NM(b) Tax for earlier periods0.00-3.52NM0.00NM0.00-3.52NM(c) Deferred tax0.000.00NM0.00NM0.000.00NMTotal tax expense0.00-3.52NM0.00NM0.00-3.52NMProfit for the period13.8811.3022.8%1.041240.4%14.9211.6727.8%Extract of Balance Sheet

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

(Rs. Crs)As at Sep-22As at Mar-22(Rs. Crs)As at Sep-22As at Mar-22ASSETSEQUITY AND LIABILITIESNon-Current AssetsEquityProperty, Plant and Equipment424.3438.8Equity Share Capital165.9158.6Capital Work-in-Progress100.3100.2Other Equity61.1-25.1Right of Use Assets2.50.2Total Equity227.1133.5Other Intangible Assets0.30.3Financial AssetsLiabilitiesInvestments0.00.0Non-Current LiabilitiesOther Financial Assets27.041.4Financial LiabilitiesNon-Current Tax Assets (Net)7.13.1Borrowings329.5381.0Other Non-Current Assets10.99.2Lease Liabilities2.00.1Total Non-Current Assets572.5593.3Other Financial Liabilities38.740.2Provisions4.84.7Current AssetsOther Non-Current Liabilities13.714.5Inventories79.972.3Total Non-Current Liabilities388.7440.5Financial AssetsTrade Receivables243.9236.8Current LiabilitiesCash and Cash Equivalents42.542.7Financial LiabilitiesOther Bank Balances34.127.9Borrowings154.6204.0Loans0.00.0Lease Liabilities0.60.1Other Financial Assets10.417.0Trade Payables162.7171.3Other Current Assets20.923.3Other Financial Liabilities32.617.7Total Current Assets431.7420.0Provisions24.926.3Current Tax Liabilities (Net)0.00.0Other Current Liabilities13.019.8Total Current Liabilities388.4439.3TOTAL ASSETS1,004.21,013.3TOTAL EQUITY AND LIABILITIES1,004.21,013.3Recent Product Developments

Launch of Mansion House Flavoured Brandy

Launch of Mansion House Reserve Brandy

▪ India’s First Premium Flavoured Brandy ▪ An inclusive drink for all; across age- groups, genders, for all occasions

▪ Available in three flavours

‒ Peach ‒ Orange ‒ Cherry

▪ Launched in Puducherry in Jun-22 and in Telangana in Sep-22; other regions to follow

▪ Super-premium variant of our flagship

brand, Mansion House Brandy

▪ Blend made from special kind of ‘Ugni

Blanc’ grapes from the Sahyadris

▪ Initially launched in Tamil Nadu in Sep-22; India’s largest brandy consuming state; other states to follow

▪ This segment in Tamil Nadu is 19 lacs

cases strong in FY22

Removal of Monocartons

✓ ✓

Focus on sustainability

Cost saving measure

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

COMPANY & INDUSTRY OVERVIEW

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

About the Company

Largest premium brandy manufacturer in India with presence across all segments of IMFL

Manufacturing units across 12 states Owned: 4 units Contract manufacturing: 16 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; manufacturing units is as of 10th Nov 2022

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

Presence across IMFL categories

Focus on semi-premium and above segments

Super-Premium Rs. 1,000 & Above

Premium Rs. 700-1,000

Deluxe / Semi-Premium Rs. 500-700

(Note: All MRP for 750ml)

Mansion House Reserve Brandy

Courrier Napoleon Brandy Green

Mansion House Flavoured Brandy

Mansion House Brandy

Mansion House Gold Whisky

Courrier Napoleon Brandy Red

Madiraa XXX Rum

Blue Lagoon Gin Orange

Tilaknagar Industries | Q2 (Jul to Sep 2022) & H1 FY23

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 | Q2 (Jul to Sep 2022) & H1 FY23

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 ▪ Equal focus on high-growth, nascent

regions

▪ 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 net debt free by

▪ Focus on taking proactive measures to

resolve all auditor qualifications

FY24

(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 Limited has informed the Exchange about Investor Presentation

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