Despite Sales Lost In Lockdown, Tilaknagar Industries Cuts Loss by Slashing Operating, Finance Costs in Q1 of FY2020-21

Leading alcoholic beverage manufacturer, Tilaknagar Industries Limited (TI) announced its results for the first quarter of the financial year 2021.  Despite the adverse impact of the COVID-19-induced nationwide lockdown, the company was able to cut down the loss from Rs 36.96 crore a year ago to Rs 22.80 crore. This was primarily due to the steep decline in finance costs from Rs 46.22 crore to Rs 17.24 crore and reduction in operating expenses from Rs 40.54 crore to Rs 22.53 crore.

As the sales volume declined from 13.59 lakh cases to 6.18 lakh cases, the revenue for quarter ended June 30, 2020 reduced from Rs 324.51 crore to Rs 185.73 crore.

Commenting on the results, Chairman and Managing Director, Shri Amit Dahanukar said, “Q1 was certainly challenging in view of the pandemic-induced lockdown which severely impacted sales. Imposition of steep COVID tax by certain governments also subdued sales. However, going forward, we expect sales to stabilise and start growing from the second half. Some states like Telangana have shown promise where sales volume increased from 1.71 lakh cases to 2.35 lakh cases.”

As a result of the onetime settlements completed by the company in the financial year (FY) 2020 and the restructuring of debt implemented by the Company, there was a 62.70 percentage reduction in finance costs from Rs 46.22 crore to Rs 17.24 crore.

For the year ended March 31, 2020, TI had reported a profit after tax (PAT) of Rs 270 crore, a multi-fold increase on the back of exceptional items of Rs 455 crore. The exceptional items included a write back of Rs 226 crore for Bank of India, Rs 195 crore for State Bank of India and Rs 34 crore for IDBI on account of the agreed settlement amounts being paid to the aforesaid banks.

Tilaknagar Industries, the maker of the famous Mansion House brandy, has also entered into a long restructuring agreement with Edelweiss Asset Reconstruction Company (EARC) wherein total loans of Rs 523 crore have been restructured at Rs 344 crore at an interest rate of 9 percent.

Founded in 1933 as Maharashtra Sugar Mills, Tilaknagar Industries, today, is a leading alcoholic beverage company in India. Over the years, the company has built a strong and diverse portfolio of brands in various liquor categories including brandy, whisky, vodka, gin and rum.