Tilaknagar Industries Limited has informed the Exchange about Investor Presentation
February 09, 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 and Nine Months
ended December 31, 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 December 31, 2021.
for Unaudited Financial Results
for Quarter and Nine Months 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) 2/9/2022
Earnings Presentation Q3 FY22 (Oct to Dec 2021)
Tilaknagar Industries | Q3 FY22 Earnings Presentation
1
Q3 FY22 PERFORMANCE
Tilaknagar Industries | Q3 FY22 Earnings Presentation
2
Q3 FY22 Highlights
Key Performance Highlights
Volume (in lacs cases)
Volumes have grown to 18.7 lacs cases in Q3 FY22
(up 13% Y-o-Y)
Strong NSR of Rs. 1,139 per case (vs. Rs. 1,087 per case in Q2
FY22)
Lockdown impact
14.9
16.5
17.2
Lockdown impact
18.1
18.7
Net revenue from operations at Rs. 206 crs (up 23% Y-o-Y)
11.1
Gross profit at Rs. 109 crs (up 29% Y-o-Y); Gross margin at 53%
EBITDA at Rs. 32 crs (up 46% Y-o-Y); EBITDA margin at 15.7%
6.0
Profit after tax at Rs. 10 crs (from loss of last year)
Debt reduced to Rs. 488 crs as of Dec-21; from Rs. 543 crs as of
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Q3 FY22
Mar-21
Net debt at Rs. 383 crs as of Dec-21
Tilaknagar Industries | Q3 FY22 Earnings Presentation
3
Management commentary on Q3 FY22 results
From the desk of Mr. Amit Dahanukar, Chairman & Managing Director
Over the last couple of quarters, we have showcased a turnaround strategy not only in terms of net debt management but
also around growth and profitability
This quarter is no different; our revenues have grown 23% YoY, EBITDA margins have been robust at 15.7% and debt has
reduced by Rs. 55 crs since Mar-21
In terms of our product portfolio, brandy continues to lead our growth, with Mansion House Brandy, our flagship brandy
brand clocking a 17% growth YoY
The high growth in brandy volumes indicates the inherent strength of Brandy as a mainstay category within the overall
IMFL industry
Despite the inflationary pressures being faced across the industry, we have been able to maintain our margins on account
of our regional and product mix
While the next couple of quarters could be challenging on account of full impact of inflationary pressures especially towards
our packing material costs, I am also excited with a slew of new developments from our end; new product launches, regional expansions and introduction of new growth avenues
I am also happy to share that to help us meet these developments, we have, in the quarter gone by, completed a
preferential issue of Rs. 141 crs
Tilaknagar Industries | Q3 FY22 Earnings Presentation
4
Strong Q3 FY22 performance…
Q3 FY22
Q3 FY21
Volumes (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
Profit / (Loss) after tax
17.64
1.03
18.67
1,139
205.9
109.2
53.0%
32.4
15.7%
24.2
10.3
15.21
1.26
16.48
1,007
167.6
84.7
50.5%
22.2
13.2%
13.8
-3.9
Y-o-Y growth
15.9%
-18.7%
13.3%
13.1%
22.8%
29.0%
252 bps
46.2%
252 bps
75.0%
NM
Q2 FY22
16.91
1.15
18.06
1,087
201.1
98.2
48.8%
30.5
15.2%
22.3
11.3
Q-o-Q growth
4.3%
-10.7%
3.4%
4.8%
2.4%
11.1%
418 bps
6.2%
56 bps
8.6%
-9.2%
9M FY22
9M FY21
44.97
2.85
47.82
1,126
542.3
283.4
52.2%
86.3
15.9%
61.7
21.9
34.45
2.89
37.34
1,002
356.4
185.9
52.2%
43.9
12.3%
18.8
-29.4
Y-o-Y growth
30.5%
-1.3%
28.1%
12.4%
52.2%
52.4%
8 bps
96.9%
362 bps
227.5%
NM
Tilaknagar Industries | Q3 FY22 Earnings Presentation
5
Extract of Income Statement
Tilaknagar Industries | Q3 FY22 Earnings Presentation
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(Rs. Crs)Q3 FY22Q3 FY21Y-o-Y growth %Q2 FY22Q-o-Q growth %9M FY229M FY21Y-o-Y growth %Revenue from operations (Gross)501.7431.316.3%445.312.6%1,271.2976.630.2%Less: Excise Duty295.8263.612.2%244.221.1%728.8620.217.5%Revenue from Operations (Net)205.9167.622.8%201.12.4%542.3356.452.2%Other income1.10.846.8%1.3-15.7%2.64.1-35.2%Total Revenue (I)207.0168.422.9%202.42.3%545.0360.551.2%EXPENSES:(a) Cost of materials consumed99.287.613.3%94.45.2%257.4188.436.6%(b) Purchases of stock-in-trade0.00.0NM0.0NM0.00.0NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade-2.5-4.7NM8.5NM1.6-17.9NM(d) Employee benefits expense6.96.39.4%6.310.3%20.420.7-1.8%(e) Other expenses69.856.124.3%61.413.7%176.7121.345.6%Total Expenses (II)173.5145.419.3%170.61.7%456.0312.645.9%Profit before interest, tax, depreciation and amortisation (I - II)33.522.946.2%31.95.3%89.047.985.6%Finance costs15.518.5-15.9%15.8-1.9%46.452.3-11.3%Depreciation and amortisation expense8.28.3-1.5%8.2-0.4%24.725.0-1.4%Profit before tax9.8-3.9NM7.825.7%17.9-29.3NMTax expenses :(a) Current tax0.00.0NM0.0NM0.00.0NM(b) Tax for earlier periods-0.50.0NM-3.5NM-4.00.0NM(c) Deferred tax0.00.0NM0.0NM0.00.0NMTotal tax expense-0.50.0NM-3.5NM-4.00.0NMProfit for the period10.3-3.9NM11.3-9.2%21.9-29.4NM Debt reduction journey…
…working towards near debt-free position by FY24
Debt reduction (Rs. Crs)(a)(b)(c)
1,199
Debt reduced by Rs. 55 crs over 3 quarters
543
488
31-Mar-19
31-Mar-21
31-Dec-21
(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
Debt as of 31-Dec-21(a)(b)(c)
45
124
17
EARC Term Loan
Cash Credit
303
Trade Deposits
Other Debt
EARC debt is at 9% p.a.
EARC balance debt of Rs. 130 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 | Q3 FY22 Earnings Presentation
7
COMPANY & INDUSTRY OVERVIEW
Tilaknagar Industries | Q3 FY22 Earnings Presentation
8
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 | Q3 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 | Q3 FY22 Earnings Presentation
10
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 | Q3 FY22 Earnings Presentation
11
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 | Q3 FY22 Earnings Presentation
12
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 | Q3 FY22 Earnings Presentation
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FY21 FINANCIALS
Tilaknagar Industries | Q3 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 | Q3 FY22 Earnings Presentation
15
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 | Q3 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 | Q3 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 | Q3 FY22 Earnings Presentation
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For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com
THANK YOU