Leading alcoholic beverage manufacturer, Tilaknagar Industries Limited (TI) announced its results for the quarter and financial year ended March 2021. The company reported a net loss of Rs 9.02 crore in the quarter ended March 2021 as against net profit of Rs 380.50 crore for the same period a year ago. The company’s gross sales jumped 20.76 per cent to Rs 449.13 crore in the quarter ended March 2021 as against Rs 371.91 crore in the corresponding quarter last year.
Commenting on the results, Chairman and Managing Director, Mr Amit Dahanukar said, “Despite a challenging year due to the pandemic, our revenues have remained steady. In Telangana, one of our key markets, we have witnessed a robust year-on-year growth of 50 per cent. Moreover, the brandy market in the state has also grown by 25 per cent, from 29.35 lakh cases in 2019-20 to 36.57 lakh cases in 2020-21.”
In Andhra Pradesh, another focus state for Tilaknagar Industries, the COVID-19 tax on liquor had been reversed in the second half of the year. As a result, sales stabilised and the company recorded a growth of 25 per cent in the quarter ended March 2021 as against the same period last year, he added.
Meanwhile, Tilaknagar Industries’ flagship brand, Mansion House Brandy continues to remain strong and maintain its position in the top-five brands across all categories in the southern markets.
This month, the Board of Tilaknagar Industries approved allotment of 1.39 crore equity shares of Rs 10 each to Edelweiss Asset Reconstruction Company Limited (EARC) at an issue price of Rs 24.36 per share, including premium of Rs 14.36 per equity share. The said allotment of shares on preferential basis to EARC has been done towards conversion of part of the debt owed to it by the company, amounting to approximately Rs 33.86 crore.
The company’s finance cost for the fiscal year ended March 2021 declined 45 per cent to 70.96 crore as against 128.93 crore for previous fiscal. For the quarter ended March 2021, the finance cost stood at Rs 18.70 crore as against negative 13.06 crore for the same period last year.
Recently, Tilaknagar Industries also signed a ten-year deal with alco-bev giant Pernod Ricard. As part of the long-term agreement, Tilaknagar Industries will manufacture the French distiller’s flagship brands at its manufacturing unit in Maharashtra. The association is likely to be extended to more states in the near future.