Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
CIN: L15420PN1933PLC133303 Registered Office: P.O. Tilaknagar, Tal. Shrirampur, Dist. Ahmednagar, Maharashtra-413 720 Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra-400 020 Email: investor@tilind.com, Website: www.tilind.com, Phone: +91 22 22831716/18, Fax: +91 22 22046904
November 12, 2021
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, 2021
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”), please find enclosed herewith the Earnings Presentation September 30, 2021.
for 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.
Amit Dahanukar Chairman & Managing Director (DIN: 00305636)
Encl: as above
Tilaknagar Industries Ltd. (BSE: 507205 | NSE: TI) 11/12/2021
Earnings Presentation Q2 FY22 (Jul to Sep 2021)
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Q2 FY22 PERFORMANCE
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Q2 FY22 Highlights
Strong performance led by brandy
Key Performance Highlights (Q2 FY22 vs. Q2 FY21)
Volume (in lacs cases)
Volumes have grown to 18.22 lacs cases in Q2 FY22
(up 22% Y-o-Y)
Strong NSR of Rs. 1,081 per case (vs. Rs. 968 per case in Q2
FY21)
Net revenue from operations at Rs. 201 crs (up 52% Y-o-Y)
Lockdown impact
14.9
16.5
17.2
Lockdown impact
18.2
11.1
Gross profit at Rs. 98 crs (up 42% Y-o-Y); Gross margin at 48.8%
EBITDA at Rs. 31 crs (up 59% Y-o-Y); EBITDA margin at 15.2%
6.0
Profit after tax at Rs. 11 crs (from loss of last year); this includes a
Rs. 3.5 crs of income tax refund pertaining to previous years
Debt reduced to Rs. 518 crs as of Sep-21; from Rs. 543 crs as of
Mar-21
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Management commentary on Q2 FY22 results
From the desk of Mr. Amit Dahanukar, Chairman & Managing Director
We are glad to share a very strong set of numbers despite an uncertain and challenging environment, not only in terms of
Covid-19 and related state-specific restrictions but also challenges of inflationary pressures on the business
Q2 saw a ‘normal-like’ state-wise business contribution, with all of our major states contributing meaningful volumes – this
was unlike Q1 FY22 which saw states like Kerala hardly contributing due to lock-downs at the time
Volumes grew 22.3% on a Y-o-Y basis; and in conjunction with higher NSR per case of Rs. 1,081, led to a net revenue
growth of 52%
Gross margins fell to 48.8% vs. 52.4% in Q2 FY21; this was owing to inflationary pressure on both, ENA and packaging
material cost
EBITDA margins expanded to 15.2% vs. 14.5% in Q2 FY21 on account of operating leverage
PAT increased to Rs. 11 crs i.e. 5.6% PAT margin, on account of improving operating margin profile as well as a Rs. 3.5 crs
tax adjustment from prior years
The growth in volumes and expansion in margins has enabled us in generating good cash flows leading to reduction in our
debt by Rs. 25 crs completely through internal accruals
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Strong Q2 FY22 performance…
…operating margin expansion owing to operating leverage
Q2 FY22
Q2 FY21
Y-o-Y growth
Q1 FY22
Volumes (in lacs):
Brandy volumes
Others
Total volumes
NSR (Rs. per case)
17.04
1.18
18.22
1,081
13.79
1.10
14.89
968
Financial performance (Rs. Crs):
Revenue from operations (Net)
201.11
132.41
Gross profit
Gross margin (%)
EBITDA
EBITDA margin (%)
EBIT
Profit / (Loss) after tax
98.23
48.8%
30.54
15.2%
22.29
11.30
69.38
52.4%
19.21
14.5%
10.84
-2.69
23.5%
7.4%
22.3%
11.7%
51.9%
41.6%
-356 bps
59.0%
68 bps
105.6%
NM
10.42
0.67
11.09
1,168
135.30
75.95
56.1%
23.37
17.3%
15.18
0.37
Q-o-Q growth
63.5%
75.2%
64.2%
-7.4%
48.6%
29.3%
-729 bps
30.6%
-209 bps
46.8%
2,948.2%
H1 FY22
H1 FY21
27.46
1.85
29.31
1,114
336.42
174.18
51.8%
53.91
16.0%
37.47
11.67
19.24
1.62
20.86
997
188.79
101.28
53.6%
21.68
11.5%
5.00
-25.49
Y-o-Y growth
42.7%
13.9%
40.5%
11.8%
78.2%
72.0%
-187 bps
148.7%
454 bps
649.0%
NM
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Extract of Income Statement
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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(Rs. Crs)Q2 FY22Q2 FY21Y-o-Y growthQ1 FY22Q-o-Q growthH1 FY22H1 FY21Y-o-Y growthRevenue from operations (Gross)445.3359.923.7%324.137.4%769.5545.341.1%Less: Excise Duty244.2227.57.4%188.829.3%433.1356.521.5%Revenue from Operations (Net)201.1132.451.9%135.348.6%336.4188.878.2%Other income1.33.0-55.9%0.2573.0%1.53.3-54.1%Total Revenue (I)202.4135.449.5%135.549.4%337.9192.175.9%EXPENSES:(a) Cost of materials consumed94.467.539.7%63.847.9%158.2100.856.9%(b) Purchases of stock-in-trade0.00.0NM0.0NM0.00.0NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade8.5-4.5NM-4.4NM4.1-13.3NM(d) Employee benefits expense6.37.5-16.3%7.1-11.8%13.414.4-6.8%(e) Other expenses61.442.743.9%45.435.1%106.865.263.9%Total Expenses (II)170.6113.250.7%111.952.4%282.5167.169.1%Profit before interest, tax, depreciation and amortisation (I - II)31.922.243.4%23.635.2%55.425.0121.8%Finance costs15.816.5-4.3%15.05.5%30.833.8-8.7%Depreciation and amortisation expense8.28.4-1.4%8.20.7%16.416.7-1.4%Profit before tax7.8-2.7NM0.41999.8%8.2-25.5NMTax expenses :(a) Current tax0.00.0NM0.0NM0.00.0NM(b) Tax for earlier periods-3.50.0NM0.0NM-3.50.0NM(c) Deferred tax0.00.0NM0.0NM0.00.0NMTotal tax expense-3.50.0NM0.0NM-3.50.0NMProfit for the period11.3-2.7NM0.42948.2%11.7-25.5NM Extract of Balance Sheet
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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(Rs. Crs)As at Sep-21As at Mar-21(Rs. Crs)As at Sep-21As at Mar-21ASSETSEQUITY AND LIABILITIESNon-Current AssetsEquityProperty, Plant and Equipment451.5467.8Equity Share Capital140.3125.4Capital Work-in-Progress100.2100.1Other Equity-149.0-181.2Right of Use Assets0.30.4Total Equity-8.7-55.7Other Intangible Assets0.30.4Financial AssetsLiabilitiesInvestments0.00.0Non-Current LiabilitiesOther Financial Assets28.529.0Financial LiabilitiesDeferred Tax Assets (Net)10.170.9Borrowings407.6459.0Other Non-Current Assets2.93.8Lease Liabilities0.00.1Total Non-Current Assets593.9672.4Other Financial Liabilities201.6181.7Provisions4.34.3Current AssetsOther Non-Current Liabilities23.530.5Inventories64.072.1Total Non-Current Liabilities637.1675.6Financial AssetsTrade Receivables211.0181.1Current LiabilitiesCash and Cash Equivalents37.544.9Financial LiabilitiesBank Balance other than above3.53.2Borrowings106.3121.5Loans0.00.0Lease Liabilities0.30.5Other Financial Assets0.20.2Trade Payables150.9148.0Other Current Assets34.137.6Other Financial Liabilities18.273.4Total Current Assets350.3339.1Provisions22.529.0Current Tax Liabilities (Net)0.00.0Other Current Liabilities17.619.3Total Current Liabilities315.8391.7TOTAL ASSETS944.11,011.5TOTAL EQUITY AND LIABILITIES944.11,011.5 Extract of Cash Flow Statement
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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(Rs. Crs)Half year ended Sep-21Half year ended Sep-20Cash flow from Operating activitiesNet profit (Loss) before tax8.2-25.5Adjustment for:Depreciation & Amortisation16.416.7Provision for non-moving and obsolete inventories1.00.0Finance Costs30.833.8Interest income-1.4-0.2Other adjustments2.8-1.1Operating profit before working capital changes57.923.7Working capital adjustment:(Decrease)/ Increase in trade payables, current liabilities, provisions and other financial liabilities-41.8-25.1(Increase) / Decrease in loans and advances and other assets62.9-10.1(Increase) / Decrease in inventories7.0-11.7(Increase) / Decrease in trade receivables-29.956.5Total working capital adjustment-1.89.6Direct taxes (net) refund / (paid)4.53.8Net Cash from Operating activities60.637.2Cash Flow from Investing activitiesNet Cash from Investing Activities1.20.2Cash Flow from Financing activitiesProceeds from borrowings3.32.9Repayment of borrowings including current maturities-45.8-25.0Finance costs paid-27.8-23.4Other financing activities1.1-0.2Net Cash from Financing Activities-69.1-45.8Net increase in Cash & Cash equivalents-7.3-8.4Opening cash & cash equivalents44.937.3Closing cash & cash equivalents37.528.9 COMPANY & INDUSTRY OVERVIEW
Tilaknagar Industries | Q2 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 11 states Owned: 4 units Tie-up: 12 units
15+
Brands across products
92%
Share of Brandy as % of total volumes
5.45 mn
Volumes (in cases) sold
86%
Share of sales to South India as % of total volumes
87% 3% 10%
Sales through: - State corporations - Distributors - Direct Sales
* All data is for FY21
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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We sell millions of cases across India
MANSION HOUSE
Mansion House is a millionaire brand
(more than 4.4 mn cases sold in FY21)
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
(0.6 mn cases sold in FY21)
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Our strategic focus…
…the way forward
Volume growth
Market share growth(b)
Efficient levels of capacity utilisation
5 year CAGR(a) of 14.4% – regions
contributing 70%+ of volumes (4.4% when Andhra Pradesh also considered) New launches in coming 1-2 quarters
Continued focus on brandy Market share (as % of brandy) growth
from 9.2% to 16.7%
Market share (as % of IMFL) growth from
1.7% to 2.8%
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, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 70%+ of our total volumes (b) Market share growth comparison between FY17 and FY21 in the states of Telangana, Karnataka, Kerala, Puducherry and Goa
Tilaknagar Industries | Q2 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 33% over 5 years
Market share growth of 25% over 5 years
Category
MHB
Relevant Brandy Segment (b)
Relevant Whiskey Segment (b)
Overall Brandy Segment
Overall Whiskey Segment
Overall IMFL
CAGR
4.4%
2.9%
0.5%
-2.7%
-0.6%
-1.2%
MHB: Mansion House Brandy; 5 year CAGR from FY17 to FY21 (a) The above data is for the states of Telangana, AP, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 85% of our total volumes (b) Relevant segment for brandy and whiskey refers to overall brandy and whiskey segment within same price band as MHB respectively
12.4%
FY17
16.4%
FY21
2.4%
FY17
3.0%
FY21
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Bottling arrangement with Pernod Ricard
Bottling at Shrirampur Plant in Maharashtra
10 year bottling agreement leading to near-full
capacity utilisation
Potential for providing grain-based ENA
Impact on revenues: FY21 vs. Going forward
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Debt reduction journey…
…working towards near debt-free position by FY24
Debt reduction (Rs. Crs)(a)(b)(c)
Debt as of 30-Sep-21(a)(b)(c)
1,199
Debt reduced by Rs. 25 crs over 2 quarters
543
518
31-Mar-19
31-Mar-21
30-Sep-21
(a) Debt adjusted for EARC balance debt of Rs. 145 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
49
124
30
EARC Term Loan
Cash Credit
314
Trade Deposits
Other Debt
EARC debt is at 9% p.a.
EARC balance debt of Rs. 145 crs will be waived
off on satisfactory repayment
70% of EARC Term Loan is repayable after 2
years (in FY24) Rs. 99.2 crs to be repaid over FY22 and FY23
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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FY21 FINANCIALS
Tilaknagar Industries | Q2 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%
5.92
FY18
6.64
FY19
6.44
FY20
5.45
FY21
4.98
FY18
5.92
FY19
5.86
FY20
5.03
FY21
Share of Brandy to total volumes sold
NSR per case (Rs.)
Robust sales in South India
83%
87%
86%
86%
904
FY18
985
FY19
1,005
FY20
1,014
FY21
4.91
FY18
5.80
FY19
5.51
FY20
4.70
FY21
Share of South India sales to total volumes sold
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Focus on margins and cashflows
Most of write-offs impacting EBITDA have been undertaken
Net Revenues (Rs. Mn)
Gross Profit (Rs. Mn) and Gross Margin (%)
51%
52%
46%
49%
5,778
FY18
6,613
FY19
6,528
FY20
EBITDA (Rs. Mn) and EBITDA Margin (%)
8%
561
29
0%
-519
-8%
FY19 (a) EBITDA for FY20 is not comparable due to write-offs impacting EBITDA
FY18
FY20
5,488
FY21
10%
541
FY21
2,934
FY18
3,417
FY19
3,006
FY20
Finance Cost (Rs. Mn) and as % of Net Revenues
26%
28%
20%
1,289
FY20
1,519
FY18
1,842
FY19
2,714
FY21
13%
710
FY21
Tilaknagar Industries | Q2 FY22 Earnings Presentation
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Financial Summary – Income Statement
(Rs. Mn)
Gross Revenue
Less: Excise Duty
Net Revenue
Gross Profit
Gross Margin %
Employee Costs
As % of Net Revenue
Other Expenses
As % of Net Revenue
EBITDA
EBITDA Margin %
Depreciation & Amortisation
Finance Costs
PAT
PAT Margin %
FY18
12,916
7,138
5,778
2,934
51%
220
3.8%
2,686
46%
29
0%
373
1,519
-1,511
-25%
FY19
15,255
8,642
6,613
3,417
52%
333
5.0%
2,522
38%
561
8%
367
1,842
-1,595
-24%
FY20
14,835
8,306
6,528
3,006
46%
296
4.5%
3,230
49%
-519
-8%
330
1,289
2,697
40%
FY21
14,184
8,696
5,488
2,714
49%
252
4.6%
1,921
35%
541
10%
331
710
-384
-7%
Tilaknagar Industries | Q2 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 | Q2 FY22 Earnings Presentation
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For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com
THANK YOU