Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
August 08, 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 Unaudited Financial Results for Quarter ended June 30,
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 Unaudited Financial Results for quarter ended June 30, 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.
Abhinav Gupta Chief Financial Officer
Encl: as above
Tilaknagar Industries Limited Earnings Presentation – Q1FY24
Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
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 Ltd.
2
Q1FY24 PERFORMANCE
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Management commentary
Mr. Amit Dahanukar, Chairman & Managing Director
“
Our resolute dedication to innovation, expansion, and prudent financial strategies underscores our unwavering priority: the well-being of our stakeholders
“
❖ In Q1 FY24, our company has again significantly outgrown the overall IMFL industry, with volume growth of 42% YoY, compared to around 5-6% for
overall IMFL industry
❖ Our Net Sales Realization (NSR) per case improved to Rs. 1,249 in Q1 FY24 against Rs. 1,157 in Q1 FY23, on account of a combination of state mix,
price and brand mix
❖ Despite the persistent inflationary pressures, our EBITDA margins expanded by 300+ basis points compared to same period last year; EBITDA grew
by 77% to Rs. 38.4 crs in Q1 FY24
❖ Owing to significant reduction in debt, interest costs have also significantly reduced from Rs. 13.3 crs in Q1 FY23 to Rs. 6.0 crs in Q1 FY24
❖ I am further delighted to share that we are in the final stages of refinancing our EARC debt, thereby providing flexibility in managing cash flows in the immediate future. We are refinancing our existing debt with one of India’s largest private sector banks, thereby providing us with entry into regular banking channels. We intend to become net debt free by March 2025
❖ Our commitment to diversification and innovation is exemplified by recent product launches, including Flandy and Blue Lagoon Gin, catering to varied
consumer preferences and broadening our market footprint
❖ Collectively, these achievements in the first quarter of FY24 underscore our ability to seize opportunities, drive consistent growth, and navigate
evolving market dynamics, all while maintaining a focus on innovation, expansion, and financial prudence for the benefit of all stakeholders
Tilaknagar Industries Ltd.
4
Key highlights
Total Volumes (lacs cases)
Quarter
Full Year
+42%
25.1
17.7
+43%
96.4
67.3
NSR (₹ per case)
Quarter
+8%
Full Year
+5%
1,157
1,249
1,136
1,197
Q1FY23
Q1FY24
FY22
FY23
Q1FY23
Q1FY24
FY22
FY23
Revenue (₹ crs)
EBITDA (₹ crs) & EBITDA Margin (%)
Quarter
Full Year
+33%
304
230
+49%
1,164
783
Quarter
+77%
13%
38
9%
22
Full Year
+22%
12%
137
14%
112
Q1FY23
Q1FY24
FY22
FY23
Q1FY23
Q1FY24
FY22
FY23
Tilaknagar Industries Ltd.
5
Consistent growth in volumes …owing to seasonality, Q1 volume saliency is usually between 19-21% of yearly volumes
Quarterly volumes (lacs cases)
42% volume growth in Q1 FY24 on YoY basis 86% volume growth vs. Q1 FY20 (pre-Covid)
28.4
26.0
24.3
25.1
18.9
18.1
16.3
13.8
18.5
17.6
13.5
14.7
17.2
16.5
14.9
18.7
19.5
18.1
17.7
11.1
6.0
FY19
FY20
FY21
FY22
FY23
FY24
Q1
Q2
Q3
Q4
Tilaknagar Industries Ltd.
6
Debt reduction journey… …operating cash flows helping in funding debt repayments as well as working capital requirements
Debt Journey (₹ Crs)(a)(b)
Debt as of 30-Jun-23(a)(b)
1,199
543
449
380
349
323
492
250
239
361
299
269
37
26
176
186
182
136
EARC Term Loan
Vendor Financing
Trade Deposits
Mar-19
Mar-21 Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Mar-21 Mar-22 Jun-22 Sep-22
Dec-22
Mar-23 Jun-23
Gross debt
Net debt
(a) Debt adjusted for EARC balance debt of ₹ 3.6 crs which would be waived off in FY24 on following the repayment schedule (b) Debt includes interest bearing trade deposits
Tilaknagar Industries Ltd.
7
Debt refinancing in final stages to completely prepay EARC debt
❖ We are in the final stages of refinancing our debt with Edelweiss ARC (“EARC”)
❖ EARC debt balance of Rs. 176 crs as of 30 June 2023
❖ Refinancing will be done through a loan facility taken from one of India’s largest private sector banks
❖ This refinancing enables entry into regular banking channels
❖ Offers immediate flexibility in managing cash flows, enabling investment in brand building
❖ We intend to become net debt free by March 2025
Tilaknagar Industries Ltd.
8
Quarterly Income Statement
Particulars (₹ Crs)
Revenue from Operations (Gross)
Excise Duty Revenue from Operations (Net)
Cost of Material Consumed Change in Inventories of Finished goods & Work in Progress
Total Cost of Goods Sold Gross Profit Employee Expenses Other Expenses EBITDA EBITDA Margin (%) Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Exceptional Items/Share from Associates Profit before Tax Profit before Tax(%) Tax
Profit After Tax
Profit After Tax excl. Exceptional Items
PAT Margin (%) excl. Exceptional Items
Reported Diluted EPS (As per Profit after Tax)
Tilaknagar Industries Ltd.
Q1 FY24
Q1 FY23
640.0
335.9 304.1
150.2 0.8 151.0 153.1
10.0 104.7 38.4 12.6%
1.2
7.8 31.8
10.4%
6.0
0.0 25.7 8.4%
0.0 25.7
25.7
8.4%
1.35
480.5
251.0 229.5
121.4 4.6 126.1 103.5
8.5 73.3 21.7 9.5%
0.7
8.0 14.3
6.2%
13.3
0.0 1.0 0.4%
0.0 1.0
1.0
0.4%
0.06
Y-o-Y
33.2%
33.8% 32.5%
23.7% -83.0% 19.8% 47.9%
18.3% 42.8% 76.8% 317 bps
74.6%
-3.0% 121.6%
418 bps
-54.8%
NM 2385.5% 798 bps
NM 2385.5%
2385.5%
798 bps
2157.9%
Q4 FY23
717.2
359.8 357.4
189.7 8.0 197.7 159.8
9.4 106.9 43.5 12.2%
5.1
7.9 40.6
11.2%
8.0
26.4 59.1 16.3%
-0.0 59.1
32.7
9.0%
3.11
Q-o-Q
-10.8%
-6.6% -14.9%
-20.8% -90.2% -23.6% -4.2%
6.9% -2.1% -11.7% 47 bps
-77.0%
-1.5% -21.8%
-80 bps
-24.3%
-100.0% -56.4% -787 bps
-100.0% -56.4%
-21.2%
-58 bps
-56.4%
9
Introducing “A Warm Welcome” …our new proposition for Mansion House Brandy
Tilaknagar Industries Ltd.
10
Disruptive renovation of Blue Lagoon Gin
Tilaknagar Industries Ltd.
11
Accolades & Recognition for MHB
World’s 2nd Fastest Growing Spirits Brand
India’s Largest Selling Brandy and World’s 2nd Largest Selling Brandy
Brandy Brand Champion 2023
Tilaknagar Industries Ltd.
12
Two millionaire brands in the portfolio
MANSION HOUSE India’s largest selling brandy
COURRIER NAPOLEON Our second 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 of alcoholic beverages should always be approached responsibly and with awareness.
Tilaknagar Industries Ltd.
13
COMPANY & INDUSTRY OVERVIEW
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About the Company Largest brandy manufacturer in India with presence across all segments of IMFL
1933
20
15+
93%
9.64mn
86%
90 years since incorporation & 50+ years of experience in alcobev manufacturing
Manufacturing units across 12 states Owned: 4 units Contract manufacturing: 16 units
* All data is for FY23; manufacturing units is as on date
Tilaknagar Industries Ltd.
Brands across products
Share of Brandy as % of total volumes
Volumes (in cases) sold
Share of sales to South India as % of total volumes
15
Our journey The turnaround well and truly coming to fruition
1933-2007
2008-2014
2014-2017
2018 onwards
o Founded in 1933 as
Maharashtra Sugar Mills Ltd. (MSML) to manufacture sugar and allied products
o Tilaknagar Distilleries and
Industries Ltd. (TDIL) promoted as 100% subsidiary of MSML to manufacture industrial alcohol, IMFL and sugar cubes
o TDIL merged with MSML after
MSML exits sugar business and renamed to Tilaknagar Industries
o Acquired subsidiaries Vahni Distilleries (Karnataka), Prag Distilleries (Andhra), Kesarval Springs Distillers (Goa) and PunjabExpo (Punjab)
o Acquired seven brands from Alcobrew Distilleries for CSD segment and IFB Agro’s IMFL business (‘Volga’ vodka and ‘Blue Lagoon’ gin) for an entry into East Indian markets of West Bengal, Assam and Odisha o Commissioned expansion of 50 KLPD molasses based distillery to 100 KLPD and 100 KLPD grain based distillery
o At its peak, registered net
revenue of ₹ 824 crs in FY14
o Expansion project at Prag stalled o Defaults in repayment to banks
and financial institutions o Sale of assets of Kesarval
Springs Distillers to Indospirit Beverages Pvt. Ltd. in 2015
o Restructuring of debt completed
with EARC and one-time settlements reached with all lenders
o Enters into 10 yrs agreement to
manufacture products for Pernod Ricard products in Maharashtra o EBITDA more than doubled in
FY23 to ₹ 137 crs
o Volumes in FY23 at 9.6 mn o Gross debt as of 30-Jun-23 at ₹ 239 crs and Net debt at ₹ 136 crs
o Raised more than ₹ 310 crs through preferential issue of equity and warrants, since Dec- 21
Tilaknagar Industries Ltd.
16
Brand portfolio
Super-Premium ₹ 1,000 & Above
Mansion House Reserve Brandy
Courrier Napoleon Brandy Green
Premium / Semi- Premium ₹ 700-1,000
#1 Premium Brandy in India
Mansion House Brandy
Mansion House Gold Whisky
Deluxe ₹ 500-700
(Note: All MRP for 750ml)
Tilaknagar Industries Ltd.
Madiraa XXX Rum
Courrier Napoleon Brandy Gold
India’s first premium flavoured brandy Mansion House Flandy
New Launch
Blue Lagoon Gin
17
Senior management
Amit Dahanukar Chairman & Managing Director
Abhinav Gupta CFO Previously CFO with Trident Limited
Ameya Deshpande President – Strategy & Corp Dev Previously Investment Banker with Deutsche Bank and BNP Paribas & Co- founder at Authenticook
Tarun Behl Vice President – Works 22+ yrs of alcobev experience In United Spirits/Diageo India, Shaw Wallace
Shivani Dahanukar Executive Director
Tilaknagar Industries Ltd.
Ahmed Rahimtoola CMO 14+ yrs with Allied Blenders & Distillers
Col. Bineet Walia (Retd) President – Institutional Sales Former Colonel of the Indian Army
Yuvraj Singh Som Vice President – Strategy & Operations 13+ yrs with Radico Khaitan
18
FULL YEAR FINANCIALS
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Improving business fundamentals
Premiumisation strategy to enhance margins and cash flows
Total Volumes Sold (mn cases)
Share of Brandy to total volumes sold
84%
89%
91%
92%
94%
93%
Brandy Sales (mn cases)
5.92
6.64
6.44
6.73
5.45
4.98
5.92
5.86
6.33
5.03
9.64
8.98
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
NSR per case (₹)
Robust sales in South India (mn cases)
904
985
1.005
1.014
1.136
1.197
Share of South India sales to total volumes sold
83%
87%
86%
86%
86%
86%
8.33
4.91
5.80
5.51
5.82
4.70
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
Tilaknagar Industries Ltd.
20
Focus on margins and cashflows
Net Revenues (₹ Crs)
EBITDA (₹ Crs) and EBITDA Margin (%)
Finance Cost (₹ Crs) and as % of Net Revenues
1,164
783
137
112
661
653
578
549
56
8%
54 10%
14%
12%
FY18
FY19
FY20
FY21
FY22
FY23
3
0%
-8%
-52
FY18
FY19
FY20
FY21
FY22
FY23
184
28%
152
26%
129 20%
13%
71
8%
62
3% 40
FY18
FY19
FY20
FY21
FY22
FY23
(a) EBITDA for FY20 is not comparable due to write-offs impacting EBITDA Tilaknagar Industries Ltd.
21
Income Statement
Particulars (₹ Crs)
Revenue from Operations (Gross) Excise Duty Revenue from Operations (Net)
Cost of Material Consumed Change in Inventories of Finished goods & Work in Progress
Total Cost of Goods Sold Gross Profit Employee Expenses Other Expenses
EBITDA EBITDA Margin (%) Other Income
Depreciation EBIT
EBIT Margin (%) Finance Cost Exceptional Items/Share from Associates
Profit before Tax
Profit before Tax (%)
Tax Profit After Tax Profit After Tax excl. Exceptional Items
PAT Margin (%) excl. Exceptional Items
Reported Diluted EPS (As per Profit after Tax)
Tilaknagar Industries Ltd.
Mar-23
2,469.3 1,304.9 1,164.4
633.3 -17.0 616.3 548.1
37.6
373.3 137.2 11.8%
7.5
32.3 112.3
9.6%
40.2 77.7 149.9
12.8%
-0.0 149.9 72.2
6.2%
8.56
Mar-22
1,792.1 1,008.7 783.4
378.0 4.4 382.4 401.0
32.1
256.8 112.1 14.3%
10.5
32.7 89.8
11.3%
61.9 13.2 41.2
5.2%
-4.0 45.2 32.0
4.0%
3.08
Mar-21
1,418.4 869.6 548.8
291.3 -13.9 277.4 271.4
25.2
192.1 54.1 9.9%
11.4
33.1 32.4
5.8%
71.0 0.0 -38.6
-6.9%
-0.2 -38.4 -38.4
-6.9%
(3.07)
22
Balance Sheet
Particulars (₹ Crs)
ASSETS Non ‐ Current Assets Property, plant and equipment Capital work‐in‐progress Right of use assets Intangible assets
Financial Assets (i) Investments (ii) Loans (iii) Other Financial Assets Income Tax Assets (Net) Other non‐current assets Total Non ‐ Current Assets Current Assets Inventories Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other current financial assets Other current assets Total Current Assets TOTAL ASSETS
Tilaknagar Industries Ltd.
Mar-23
Mar-22
Mar-21
417.5 0.1 2.2 0.3
0.5 0.1 28.5 4.3 6.5 460.1
116.2
22.1 338.8 34.8 9.4 0.0 7.7 22.5 551.5 1011.5
438.8 100.2 0.2 0.3
0.0
41.4 3.1 9.2 593.3
72.3
236.8 42.7 27.9
17.0 23.3 420.0 1013.3
467.8 100.1 0.4 0.4
0.0
29.0 3.8 69.8 671.3
72.1
181.1 44.9 3.2 0.0 0.2 38.7 340.2 1011.5
23
Balance Sheet
Particulars (₹ Crs)
Equity (a) Equity share capital (b) Other equity Total Equity
Liabilities Non ‐ Current Liabilities Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Other Financial Liabilities Deferred Tax Liabilities Provisions Other Non-Current Liabilities Total Non‐ Current Liabilities
Current Liabilities Financial liabilities (i) Borrowings (ii) Lease liabilities (a) total outstanding dues of micro enterprises and small enterprises (b) total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other financial liabilities Other current liabilities Provisions Current tax liabilities (net) Total Current Liabilities Total Equity and Liabilities
Tilaknagar Industries Ltd.
Mar-23
Mar-22
Mar-21
185.3 297.6 482.9
24 2.1 64.3
4.1
94.5
229.1 0.3 34.4 94.7 29.6 12.2 33.7
434.1 1012
158.6 -25.1 133.5
381 0.1 40.2
4.7 14.5 440.5
204 0.1 23.7 147.6 17.7 19.8 26.3
439.3 1013.3
125.4 -181.2 -55.7
459 0.1 60.2
4.3 30.5 554.1
242.9 0.5 25.4 122.6 73.4 19.3 29 0 513.1 1012
24
Cash Flow Statement
Particulars (₹ Crs)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Add: Net effect of exchange gain on cash and cash equivalents
Mar-23
Mar-22
Mar-21
149.9
4.7
145.2
-72.8
72.4
-1.2
71.3
-11.8
-67.4
-7.9
42.7
41.2
-86.9
128.1
-67.6
60.4
4.7
65.1
-25.9
-41.3
-2.1
44.9
-38.6
-106.9
68.3
14.3
82.6
2.9
85.5
-0.3
-77.6
7.5
37.3
Cash and cash equivalents as at 31st March
34.8
42.7
44.9
Tilaknagar Industries Ltd.
25
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 :
Orient Capital (a division of Link Group)
Mr. Nikunj Jain +91 9769060608 nikunj.jain@linkintime.co.in
Mr. Amar Yardi +91 7045121239 amar.yardi@linkintime.co.in
Thank You
"Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.