Tilaknagar Industries becomes debt free in Q2

Tilaknagar Industries Ltd (TIL) marked a significant milestone by becoming net debt-free in Q2 FY2024-2025, achieving this goal nearly six months ahead of schedule.

In the second quarter of the current financial year, TIL reported a profit after tax (PAT) excluding exceptional items of Rs 58.2 crore, marking an 82.4 percent increase over the Rs 31.9 crore PAT reported in the same quarter last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 66 crore, reflecting a 39 percent growth over the Rs 47.4 crore EBITDA reported in Q2 of the previous year.

Significantly, the company’s EBITDA margin expanded by 422 basis points year-on-year to 17.6 percent. Adjusted for subsidy income, EBITDA stood at Rs 56 crore, with a margin of 15.3 percent, showing a 188-basis point expansion year-on-year. This growth in profitability was achieved despite a modest 5.8 percent increase in net revenue from operations to Rs 374.9 crore, due to a temporary slowdown in growth caused by policy changes in one of the company’s key markets, Andhra Pradesh, which recently opened liquor retail to private parties.

Reacting to the company’s impressive performance in Q2 FY2024-2025, Amit Dahanukar, Chairman and Managing Director, TIL  said, “From a peak debt of more than Rs 1,100 crore in March 2019, to achieving the net debt free status, we have come a long way. This transformation was achieved through a combination of financial prudence and achieving industry-beating profitable growth.”

He added, “With retail going private in Andhra Pradesh mid-October onwards, we expect to continue with our industry-beating growth trajectory, achieved through a combination of doubling down on our market share gains from our brandy portfolio as well as our new product launches across categories.”