Piccadily’s PAT up but Q3 net profit declines

Piccadily Agro Industries Ltd. (PAIL), India's largest independent manufacturer of malt spirits, has announced its financial results for the quarter ending December 2024, showcasing a mixed performance. While the Profit After Tax (PAT) increased by 32.14 percent year-on-year to ₹25.04 crore and operating profit margins reached a five-quarter high at 26.18 percent, quarterly net profit declined by nearly 45 percent and interest expenses surged, highlighting both strengths and challenges in the company's financial landscape.

The company also reported its highest cash and cash equivalents at ₹233.74 crore, suggesting an enhancement in short-term liquidity and saw a notable increase in both sales and profitability, driven by its distillery division, which posted an impressive 18.48 percent YoY growth, driving revenue of the distillery division to ₹183.91 cr. The EBITDA also saw a rise of 46.07 percent YoY, recording ₹50.86 crore. Furthermore, the debt-equity ratio has reached a low of 0.35 times, demonstrating a reduction in borrowing relative to equity capital. The company’s premium brands, including Indri Single Malt and Camikara rum, India’s first pure cane juice rum, contributed to the success.

The company's revenue from operations also rose 7 percent YoY to ₹205.72 crore in Q3 of the current financial year and the total revenue increased by 8.51 percent to ₹208.32 crore. The net profit margin rose to 12.02 percent while the Earnings Per Share increased by 33 percent YoY at ₹2.65.

Conversely, the quarterly net sales have shown a decline, recording ₹182.29 crore, which is 11.8 percent lower than the average of the previous four quarters. The interest expense has surged to ₹9.34 crore, reflecting a 70.13 percent increase quarter-on-quarter, which raises concerns about the company’s ability to manage its interest payments.

Regarding the results, Natwar Aggarwal, Chief Financial Officer of PAIL said, “Our strong Q3 performance reflects the growing global demand for Indri single malt and Camikara rum. An increase of 32.14 percent in PAT and a 46.07 percent surge in EBITDA YoY, is a result of strong growth and performance of our distillery vertical. As we continue with our expansion plans, we endeavour to define the future of niche and premium alcobev spirits in India by capitalising on growth opportunities both organically and inorganically.”