Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
November 02, 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 and half year
ended September 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 September 30, 2023.
for the Unaudited Financial Results
for quarter and half year ended
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 – Q2 & H1 FY24
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
Q2 & H1 FY24 PERFORMANCE
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Management commentary
Mr. Amit Dahanukar, Chairman & Managing Director
“
Our focus over the coming 6-8 quarters will be to increase our market share in existing and new regions through robust growth in our brandy portfolio.
“
❖ Our company achieved YoY volume growth of 17.2% in Q2 FY24 and 27.8% in H1 FY24, compared to overall IMFL industry growth of 3-4% in H1
❖ While Mansion House Brandy continues to gain market share, Flandy, our flavoured brandy range is helping us make brandy trendy again and position
brandy as an aspirational and youthful drink
❖ Our Net Sales Realization (NSR) per case further improved to ₹ 1,273 in Q2 FY24 from ₹ 1,179 in corresponding quarter last year, on account of a
combination of improved brand and state mix as well as price increases received in our key state of Telangana
❖ Our EBITDA margins expanded to 13.4% as compared to 11.4% in Q2 FY23 and 12.6% in Q1 FY24 despite increase in ENA prices; we are however seeing
some softening of prices in packing materials
❖ EBITDA now stands at ₹ 47 crs in Q2 FY24 and ₹ 86 crs in H1 FY24; a YoY growth of 50.9% and 61.5% respectively
❖ Our PAT excluding exceptional items increased 130% YoY to ₹ 32 crs, at a PAT margin of 9%
❖ I am also happy to share that we completed the refinancing of our Edelweiss ARC debt in Q2 FY24; we refinanced the ₹ 176 crs debt with a fresh term loan of ₹ 130 crs raised from Kotak Bank. This refinancing provides us with flexibility to better manage cash flows, without significantly increasing interest burden
❖ It also gives me great pleasure to share that our new proposition for Mansion House Brandy, “A Warm Welcome” is gaining tremendous traction and
enabling us to increase ‘share of voice’ for brandy
Tilaknagar Industries Ltd.
4
Key highlights - Q2FY24
Total Volumes (lacs cases)
NSR (₹ per case)
+17%
25.1
28.5
24.3
+8%
1,249
1,273
1,179
Q2FY23
Q1FY24
Q2FY24
Q2FY23
Q1FY24
Q2FY24
Net Revenue (₹ crs)
EBITDA (₹ crs) & EBITDA Margin (%)
+29%
304
354
274
11.4%
12.6%
13.4%
+51%
38
47
31
Q2FY23
Q1FY24
Q2FY24
Q2FY23
Q1FY24
Q2FY24
Tilaknagar Industries Ltd.
5
Key highlights – H1FY24
Total Volumes (lacs cases)
NSR (₹ per case)
+28%
53.6
42.0
H1FY23
H1FY24
Revenue (₹ crs)
+31%
658
504
+8%
1,170
1,262
H1FY23
H1FY24
EBITDA (₹ crs) & EBITDA Margin (%)
10.5%
13.0%
+61%
86
53
Tilaknagar Industries Ltd.
6
H1FY23
H1FY24
H1FY23
H1FY24
Consistent growth in volumes …Q2FY24 has been the highest selling quarter since FY15
Quarterly volumes (lacs cases)
54% volume growth vs. Q2 FY20 (pre-Covid)
28.4
28.5
26.0
24.3
25.1
18.9
18.1
18.5
17.6
16.3
13.8
13.5
14.7
17.2
16.5
14.9
19.5
18.7
18.1
17.7
11.1
6.0
FY19
FY20
FY21
FY22
FY23
FY24
Q1
Q2
Q3
Q4
Tilaknagar Industries Ltd.
7
Debt reduction journey… …operating cash flows helping in funding debt repayments as well as working capital requirements
Debt Journey (₹ Crs)(a)
Debt as of 30-Sep-23(a)
1,199
38
24
126
543
449
349
492
361
269
250
239
188
182
136
141
Kotak Term Loan
Vendor Financing
Trade Deposits
Mar-19
Mar-21
Mar-22
Sep-22
Mar-23
Jun-23
Sep-23
Mar-21
Mar-22
Sep-22
Mar-23
Jun-23
Sep-23
Gross debt
Net debt
(a) Debt includes interest bearing trade deposits
Tilaknagar Industries Ltd.
8
Refinancing of EARC debt through Internal Accruals & Term Loan
We have refinanced the Edelweiss ARC (“EARC”) debt from Internal Accruals & a fresh Term Loan facility from Kotak Mahindra Bank
EARC debt balance of ₹.176 crores was refinanced with existing cash reserves & ₹ 130 crores of fresh Kotak Term Loan
Term Loan to be repaid in 4 years
This refinancing enables entry into regular banking channels
Offers immediate flexibility in managing cash flows, enabling investment in brand building
We intend to become near net debt free by March 2025
Tilaknagar Industries Ltd.
9
Income Statement
Particulars (₹ Crs)
Q2 FY24
Q2 FY23
Revenue from Operations (Gross)
Excise Duty
Revenue from Operations (Net)
Cost of Material Consumed
Change in Inventories
Total Cost of Goods Sold
Gross Profit
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Exceptional Items
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.
750.2
395.8
354.4
176.2
5.4
181.7
172.7
10.4
114.9
47.4
596.1
321.6
274.5
147.5
-7.8
139.7
134.8
9.0
94.4
31.4
13.4%
11.4%
0.5
8.2
39.7
11.2%
7.7
5.1
37.0
10.4%
0.0
37.0
31.9
9.0%
1.95
0.6
8.2
23.8
8.7%
9.9
0.0
13.9
5.0%
0.0
13.9
13.9
5.0%
0.81
Y-o-Y
25.9%
23.1%
29.1%
19.5%
NM
30.0%
28.1%
15.5%
21.7%
50.9%
193 bps
-17.9%
0.3%
66.7%
253 bps
-21.9%
NM
166.8%
539 bps
NM
166.8%
129.9%
395 bps
140.6%
Q1 FY24
Q-o-Q
H1 FY24
H1 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
17.2%
17.8%
16.5%
17.3%
585.6%
20.3%
12.8%
3.2%
9.8%
23.5%
75 bps
-58.7%
5.6%
24.9%
77 bps
28.6%
NM
43.9%
200 bps
NM
43.9%
24.0%
56 bps
44.4%
1,390.2
1,076.6
731.7
658.5
326.5
6.2
332.6
325.8
20.4
219.6
85.8
572.5
504.0
268.9
-3.2
265.7
238.3
17.5
167.7
53.1
Y-o-Y
29.1%
27.8%
30.6%
21.4%
NM
25.2%
36.7%
16.9%
31.0%
61.5%
13.0%
10.5%
249 bps
1.6
16.1
71.4
10.8%
13.8
5.1
62.8
9.5%
0.0
62.8
57.7
8.7%
3.59
1.3
16.3
38.1
7.5%
23.2
0.0
14.9
3.0%
0.0
14.9
14.9
3.0%
0.89
31.3%
-1.3%
87.3%
327 bps
-40.7%
NM
320.8%
656 bps
NM
320.8%
286.5%
578 bps
302.3%
10
Balance Sheet
Particulars (₹ Crs)
EQUITY & LIABILITIES Equity (a) Equity share capital (b) Other equity Total Equity Non‐controlling interests Total Equity
Borrowings
Liabilities Non‐Current Liabilities Financial liabilities (i) (ii) Lease liabilities (iii) Other Financial Liabilities Provisions Total Non‐Current Liabilities
Current Liabilities Financial liabilities (i) (ii) Lease liabilities (iii) Trade payables; total outstanding dues of
Borrowings
(a) micro enterprises and small enterprises (b) creditors other than micro enterprises and small enterprises
(iv) Other financial liabilities Other current liabilities Provisions Total Current Liabilities Total Equity & Liabilities
Tilaknagar Industries Ltd.
As at Sep-23
As at Mar-23
191.7 377.6 569.3
185.3 297.6 482.9
569.3
482.9
129.7 2.1 58.0 4.4 194.1
24.0 2.1 64.3 4.1 94.5
57.8 0.3
229.1 0.3
37.0 100.8 37.3 9.0 29.2 271.4 1,034.9
34.4 94.7
29.6 12.2 33.7 434.1 1,011.5
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) Other bank balances
(v) Loans
(vi) Other current financial assets
Other current assets
Total Current Assets
Total Assets
As at Sep-23
As at Mar-23
407.8
417.5
0.1
2.1
0.3
10.8
0.1
28.3
5.7
7.3
0.1
2.2
0.3
0.5
0.1
28.5
4.3
6.5
462.5
460.1
114.7
116.2
9.2
378.1
14.9
25.2
0.0
3.7
26.6
572.3
22.1
338.8
34.8
9.4
0.0
7.7
22.5
551.5
1,034.9
1,011.5
11
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
Net Cash from Investing Activities
Net Cash from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Opening cash and cash equivalents
Closing cash and cash equivalents
Half year ending Sep-23
Half year ending Sep-22
62.8
32.4
95.1
-48.4
46.7
-1.4
45.3
-17.7
-47.5
-19.9
34.8
14.9
14.9
45.7
60.6
4.0
64.6
-4.0
60.6
-7.3
-53.5
-0.2
42.7
42.5
Tilaknagar Industries Ltd.
12
“A Warm Welcome” …Mansion House Brandy’s new proposition, giving the brandy category the voice, it deserves
Tilaknagar Industries Ltd.
13
Disruptive renovation of Blue Lagoon Gin bearing fruit in Assam and West Bengal
Tilaknagar Industries Ltd.
14
MHB is the main sponsor for the biggest talk show in South India
Tilaknagar Industries Ltd.
15
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.
16
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.
17
COMPANY & INDUSTRY OVERVIEW
Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
About the Company Largest brandy manufacturer in India with presence across all segments of IMFL
1933
19
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: 15 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
19
Our journey The turnaround well and truly coming to fruition
1933-2007
2008-2014
2014-2017
2018 onwards
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 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 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
o Edelweiss ARC debt refinanced through existing cash reserves & Term Loan from Kotak Mahindra Bank
Tilaknagar Industries Ltd.
20
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
21
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
22
FULL YEAR FINANCIALS
Drink responsibly: The consumption of alcoholic beverages should always be approached responsibly and with awareness.
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.
24
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.
25
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)
26
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
27
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
28
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.
29
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.