{"id":125,"date":"2019-08-13T10:42:07","date_gmt":"2019-08-13T10:42:07","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=125"},"modified":"2019-10-03T11:39:15","modified_gmt":"2019-10-03T11:39:15","slug":"radico-khaitan-rdck-1qfy20-cost-pressure-curbs-high-spirits","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/13\/radico-khaitan-rdck-1qfy20-cost-pressure-curbs-high-spirits\/","title":{"rendered":"Radico Khaitan (RDCK) \u2013 1QFY20 &#8211; Cost pressure curbs high spirits"},"content":{"rendered":"\n<p>Dated :- 9th August 2019<\/p>\n\n\n\n<p>1QFY20 Results<\/p>\n\n\n\n<ul><li>Radico\nKhaitan\u2019s (RDCK) revenues grew by 20.8% YoY to Rs 623 Mn driven by 12% YoY\nvolume growth in Indian Made Foreign Liquor (IMFL). <\/li><li>The higher margin Prestige &amp; Above volumes\nincreased by 16% YoY to 2.0 mn cases and the Regular &amp; Other brands volumes reported an increase of\n10.2% YoY to 4.3 mn cases. <\/li><li>EBITDA\nimproved by 9.3% YoY to Rs 989 Mn. The EBITDA margins declined by ~170\nbps to 15.9% impacted by increase in raw material costs. <\/li><li>PAT grew by 15.6% YoY to Rs 548 Mn driven by\nreduction in finance cost.<\/li><\/ul>\n\n\n\n<p>Management Commentary<\/p>\n\n\n\n<ul><li>The margins in 1QFY20 were lower 18% YoY on account of increase in Extra\nNeutral Alcohol (ENA) prices and ~15% YoY increase in glass bottles. The\nrestriction on operations at the molasses plant by the Central Pollution\nControl Board during 1QFY20, led to additional costs of Rs 65mn. <\/li><li>Rampur Indian Single Malt and Jaisalmer Indian Craft Gin continue to see\nstrong traction in the Indian as well as international markets. RDCK has\ntripled the manufacturing capacity of Rampur Indian Single Malt which will\nbenefit company in the long run.<\/li><li>The management guided for ~9% volume growth in IMFL for FY20E led by ~14% YoY in the\nPrestige &amp; Above category and ~6% YoY growth in the Regular &amp; Other Brands\ncategory.<\/li><li>Raw material price pressure will keep the gross margins at ~47% and the EBITDA\nmargins in the range of 16%-16.5% for FY20E.<\/li><li>RDCK is expected to be a debt free company within\nnext 18 months. <\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: www.marketscreener.com) <\/p>\n\n\n\n<ul><li>The closing price of RDCK was Rs 322\/- on 09-Aug-19. It traded at 22x \/ 20x \/\n16x the consensus EPS for 20E \/21E \/22E EPS of Rs 14.1\/ 15.5 \/20.1\nrespectively. <\/li><li>Consensus target price of Rs 454\/- implies a PE of 23x on FY21E EPS of Rs\n20.1. <\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Dated :- 9th August 2019 1QFY20 Results Radico Khaitan\u2019s (RDCK) revenues grew by 20.8% YoY to Rs 623 Mn driven by 12% YoY volume growth in Indian Made Foreign Liquor (IMFL). The higher margin Prestige &amp; Above volumes increased by 16% YoY to 2.0 mn cases and the Regular &amp; Other brands volumes reported an [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[75,93],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/125"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=125"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/125\/revisions"}],"predecessor-version":[{"id":126,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/125\/revisions\/126"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}