Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
May 16, 2023
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, 2023
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, 2023.
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) 5/16/2023
Earnings Presentation Q4 (Jan to Mar 2023) & FY23
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
1
Q4 & FY23 PERFORMANCE
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
2
Q4 & FY23 – at a glance
Gross margins impacted due to full quarter impact of glass price increase as well as regional mix
Q4 FY23
Q4 FY22
Y-o-Y growth
Q3 FY23
Business performance (in lacs):
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
PAT (excl. exceptional items)
26.3
2.1
28.4
1,216
357.45
159.76
44.7%
43.47
12.2%
35.55
32.69
18.3
1.2
19.5
1,162
241.06
117.61
48.8%
25.79
10.7%
17.70
10.03
43.8%
73.7%
45.7%
4.7%
48.3%
35.8%
-409 bps
68.6%
147 bps
100.8%
225.8%
24.3
1.7
26.0
1,222
302.87
149.99
49.5%
40.56
13.4%
32.41
24.55
Q-o-Q growth
8.2%
19.7%
9.0%
-0.5%
18.0%
6.5%
-483 bps
7.2%
-123 bps
9.7%
33.1%
FY23
FY22
89.8
6.6
96.4
1,197
1,164.36
548.06
47.1%
137.18
11.8%
104.84
72.16
63.3
4.0
67.3
1,136
783.37
400.96
51.2%
112.12
14.3%
79.38
31.97
Y-o-Y growth
42.0%
63.2%
43.3%
5.4%
48.6%
36.7%
-411 bps
22.4%
-253 bps
32.1%
125.7%
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
3
Debt reduction journey…
…operating cash flows helping in funding debt repayments as well as working capital requirements
Debt reduction (Rs. Crs)(a)(b)
Debt as of 31-Mar-23(a)(b)
1,199
Total debt repayment of almost Rs. 200 crs, of which Rs. 82 crs of high-cost trade deposits (interest rate of 18- 20% p.a.) repaid in FY23
543
449
492
380
349
323
250
361
299
269
186
182
Mar-19 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Gross debt
Net debt
(a) Debt adjusted for EARC balance debt of Rs. 3.6 crs which would be waived off in FY24 on following the repayment schedule (b) Debt includes interest bearing trade deposits
37
29
EARC Term Loan
Trade Deposits
184
Vendor Financing
▪ EARC debt is at 9% p.a.
▪ EARC debt (along with accrued interest) was prepaid
in Mar-23, aggregating Rs. 54.1 crs
▪ Post prepayment, balance debt of Rs. 126.6 crs has been waived by EARC and written back by Company
▪ EARC balance debt stands at Rs. 3.6 crs as of 31-
Mar-23
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
4
Volumes at significantly higher levels compared to pre- Covid times
Quarterly volumes (lacs cases)
18.9
18.1
18.5
17.6
17.2
16.5
18.7
18.1
19.5
17.7
13.5
14.7
14.9
16.3
13.8
11.1
6.0
28.4
26.0
24.3
▪ 46% volume growth in Q4 on YoY basis ▪ 50% volume
growth vs. Q4 FY19 (pre- Covid)
FY19
FY20
FY21
FY22
FY23
Q1 Q2 Q3 Q4
30
25
20
15
10
5
0
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
5
Growth driven by good mix of existing and new products
Yearly volumes (lacs cases)
▪ Growth of 43% YoY vs. IMFL industry growth of 12% in the same
96.4
period
▪ High growth (35%+ YoY) across all regions
▪ Growth driven by Mansion House Brandy (40% YoY) and Courrier
Napoleon Brandy (50% YoY); both millionaire brands
66.4
64.4
67.3
54.5
▪ Launched Mansion House Flavoured Brandy (Flandy) in Puducherry,
followed by Telangana
▪ Flandy is an industry first innovation, keeping the younger, more discerning audience in mind and has been very well received by consumers
▪ Also launched Mansion House Reserve Brandy, the premium variant
of Mansion House brandy in the state of Tamil Nadu
FY19
FY20
FY21
FY22
FY23
100
80
60
40
20
0
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
6
Operational highlights
Net Revenue (Rs. Crs)
Highest ever quarterly net revenues
357
201
206
241
230
275
303
1,164
783
549
168
192
135
132
56
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23
FY21
FY22
FY23
EBITDA (Rs. Crs)
31
32
31
26
22
41
43
137
112
54
19
22
23
10
2
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23
FY21
FY22
FY23
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
7
Management commentary From the desk of Mr. Amit Dahanukar, Chairman & Managing Director
❑ Last quarter, I mentioned that we had achieved our highest ever quarterly net revenues; I am now proud to say that we have beaten that milestone
comfortably this quarter, with a net revenue of Rs. 357 crs i.e. an 18% growth QoQ and 48% growth YoY
❑ I am equally elated to share that in FY23, we have grown 43% YoY vs. overall IMFL industry which has grown 12% ❑ Q4 FY23 growth was 46% YoY resulting in a strong finish to FY23 ❑ FY23 also saw our 2nd highest selling brand, Courrier Napoleon Brandy becoming a millionaire brand ❑ Gross margins in Q4 FY23 were impacted due to full quarter impact of glass price increase (glass price increase took place in mid of Q3 FY23) as
well as regional mix ‒ Despite this reduction in gross margins, we were able to maintain our EBITDA margin in Q4 FY23 at 12.2% (FY23 EBITDA margin at 11.8%) ‒ In addition to operating leverage, we maintained EBITDA margins through multiple cost optimization efforts and improved productivity ❑ We have seen strong growth in Mansion House Flandy, our Flavoured Brandy range; Flandy is currently available only in Telangana and
Puducherry and will be launched in other regions soon
❑ Our aim to open up the brandy category to a young, experimental and aspirational audience continues and we will be looking at launching more
premium and aspirational products over the next few quarters
❑ Our debt reduction strategy is also on-track; we have reduced our debt by almost Rs. 200 crs in FY23 ❑ I am also very glad to share that TI entered into an agreement in March 2023, to invest Rs. 9.75 crs in Spaceman Spirits Lab Pvt Ltd for a 10%
stake on a fully diluted basis
❑ In addition, we have also resolved certain auditor qualifications, including one related to the Capital Work in Progress in our subsidiary Prag
Distillery Pvt Ltd
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
8
Extract of Income Statement
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
9
(Rs. Crs)Q4 FY23Q4 FY22Y-o-Y growth %Q3 FY23Q-o-Q growth %FY23FY22Y-o-Y growth %Revenue from operations (Gross)717.25520.9137.7%675.466.2%2,469.281,792.0637.8%Less: Excise Duty359.80279.8528.6%372.59-3.4%1,304.921,008.6929.4%Revenue from Operations (Net)357.45241.0648.3%302.8718.0%1,164.36783.3748.6%Other income5.087.83-35.1%1.17335.3%7.5010.47-28.3%Total Revenue (I)362.53248.8945.7%304.0319.2%1,171.87793.8447.6%EXPENSES:(a) Cost of materials consumed189.66120.5957.3%174.698.6%633.29377.9867.5%(b) Purchases of stock-in-trade0.000.00NM0.00NM0.000.00NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade8.032.86180.6%-21.81NM-16.984.43NM(d) Employee benefits expense9.4011.73-19.8%10.72-12.3%37.5932.0917.2%(e) Other expenses106.8980.1033.5%98.718.3%373.28256.7545.4%Total Expenses (II)313.97215.2745.8%262.3019.7%1,027.18671.2553.0%Profit before interest, tax, depreciation and amortisation (I - II)48.5633.6144.4%41.7316.4%144.69122.5918.0%Finance costs7.9515.50-48.7%9.02-11.9%40.1961.87-35.0%Depreciation and amortisation expense7.928.08-2.0%8.16-2.8%32.3532.74-1.2%Profit before tax32.6810.03225.7%24.5533.1%72.1527.98157.9%Exceptional item26.4113.22NM51.33NM77.7413.22NMProfit before tax59.0923.25154.2%75.88-22.1%149.8941.19263.9%Tax expenses :(a) Current tax0.000.00NM0.00NM0.000.00NM(b) Tax for earlier periods-0.010.00NM0.00NM-0.01-4.00NM(c) Deferred tax0.000.00NM0.00NM0.000.00NMTotal tax expense-0.010.00NM0.00NM-0.01-4.00NMProfit for the period59.1023.25154.2%75.88-22.1%149.9045.19231.7% Extract of Balance Sheet
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
10
(Rs. Crs)As at Mar-23As at Mar-22(Rs. Crs)As at Mar-23As at Mar-22ASSETSEQUITY AND LIABILITIESNon-Current AssetsEquityProperty, Plant and Equipment417.5438.8Equity Share Capital185.3158.6Capital Work-in-Progress0.1100.2Other Equity297.6-25.1Right of Use Assets2.20.2Total Equity482.9133.5Other Intangible Assets0.30.3Financial AssetsLiabilitiesInvestments0.50.0Non-Current LiabilitiesLoansFinancial LiabilitiesOther Financial Assets28.541.4Borrowings24.0381.0Non-Current Tax Assets (Net)4.33.1Lease Liabilities2.10.1Other Non-Current Assets6.59.2Other Financial Liabilities64.340.2Total Non-Current Assets460.1593.3Provisions4.14.7Other Non-Current Liabilities0.014.5Current AssetsTotal Non-Current Liabilities94.5440.5Inventories116.272.3Financial AssetsCurrent LiabilitiesInvestments22.10.0Financial LiabilitiesTrade Receivables338.8236.8Borrowings229.1204.0Cash and Cash Equivalents34.842.7Lease Liabilities0.30.1Other Bank Balances9.427.9Trade Payables129.2171.3Loans0.00.0Other Financial Liabilities29.617.7Other Financial Assets7.717.0Provisions33.726.3Other Current Assets22.523.3Current Tax Liabilities (Net)0.00.0Total Current Assets551.5420.0Other Current Liabilities12.219.8Total Current Liabilities434.1439.3TOTAL ASSETS1,011.51,013.3TOTAL EQUITY AND LIABILITIES1,011.51,013.3As ofAs of COMPANY & INDUSTRY OVERVIEW
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
11
About the Company
Largest premium brandy manufacturer in India with presence across all segments of IMFL
20
Manufacturing units across 12 states Owned: 4 units Contract manufacturing: 16 units
15+
Brands across products
93%
Share of Brandy as % of total volumes
9.64 mn
Volumes (in cases) sold
86%
Share of sales to South India as % of total volumes
* All data is for FY23; manufacturing units is as on date
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
12
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 | Q4 (Jan to Mar 2023) & FY23
13
We sell millions of cases across India
MANSION HOUSE
❑ Mansion House is a millionaire brand
(more than 7.8 mn cases sold in FY23; 41% growth over FY22)
❑ As per IWSR Drinks Market Analysis, Mansion House is the
highest selling brandy in India
❑ Manufactured across all units
❑ A brand with a high brand loyalty driving repeat purchases
COURRIER NAPOLEON – OUR 2nd MILLIONAIRE BRAND
❑ Achieved millionaire status in FY23
(1.2 mn cases sold in FY23; 50% growth over FY22)
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
14
Our strategic focus…
…the way forward
Volume growth
Market share growth(a)
Efficient levels of capacity utilisation
▪ FY23 growth in volumes at 43.3% ▪ 6 yrs CAGR of 13.6% for MHB ▪ Equal focus on high-growth, nascent
regions
▪ Continued focus on brandy ▪ Market share (as % of brandy) growth
from 12.4% to 19.6%
▪ Market share (as % of IMFL) growth from
2.4% to 4.3%
▪ 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) Market share growth comparison between FY17 and FY23 in the states of Telangana, Andhra Pradesh, Karnataka, Kerala, Puducherry and Goa
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
15
Recent 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 | Q4 (Jan to Mar 2023) & FY23
16
FY23 FINANCIALS
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
17
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%
93%
5.92
FY18
6.64
FY19
6.44
FY20
5.45
FY21
6.73
FY22
9.64
FY23
4.98
FY18
5.92
FY19
5.86
FY20
5.03
FY21
6.33
FY22
8.98
FY23
Share of Brandy to total volumes sold
NSR per case (Rs.)
Robust sales in South India (mn cases)
83%
87%
86%
86%
86%
86%
904
FY18
985
FY19
1,005
FY20
1,014
FY21
1,136
FY22
1,197
FY23
4.91
FY18
5.80
FY19
5.51
FY20
4.70
FY21
5.82
FY22
8.33
FY23
Share of South India sales to total volumes sold
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
18
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%
46%
49%
51%
47%
578
FY18
661
FY19
653
FY20
549
FY21
783
FY22
1,164
FY23
293
FY18
342
FY19
301
FY20
271
FY21
401
FY22
548
FY23
EBITDA (Rs. Crs) and EBITDA Margin (%)
Finance Cost (Rs. Crs) and as % of Net Revenues
8%
56
3 0%
-52
-8%
10%
14%
12%
26%
28%
20%
54
112
137
152
FY18
184
FY19
129
FY20
13%
71
FY21
8%
62
FY22
3%
40
FY23
FY18
FY19
FY20
FY21
FY22
FY23
(a) EBITDA for FY20 is not comparable due to write-offs impacting EBITDA
Tilaknagar Industries | Q4 (Jan to Mar 2023) & FY23
19
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 (Jan to Mar 2023) & FY23
20
For further information, please contact: Ameya Deshpande President – Strategy & Corporate Development Email: adeshpande@tilind.com
THANK YOU