Tilaknagar Industries show strong profit growth

Leading IMFL manufacturer Tilaknagar Industries Ltd. has reported a 23.2 percent year-on-year jump in profit after tax (PAT) at ₹54 crore (excluding exceptional items) for the quarter ended December 31, 2024. The company had recorded a net profit of ₹44 crore in the same period a year ago.

The company demonstrated a strong ability to manage its interest payments, as reflected in its strong operating profit to interest ratio, which stands at 25.57 times, marking the highest level in the last five quarters.

Additionally, the earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹60 crore, showing a 17.4 percent growth over the corresponding quarter of the previous financial year. The company, maker of India’s largest and the world’s second largest-selling brandy, Mansion House, reported an improvement in EBITDA margin by 408 basis points, rising up to 17.7 percent from 13.6 percent reported in the quarter ended December 31, 2023. Furthermore, the debt-equity ratio has improved, now at 0.13 times, indicating a reduction in borrowing relative to equity capital.

In the quarter ended December 31, 2024, the company’s primary volumes grew 2.3 percent to 30.1 lakh cases and secondary volumes grew 9.2 percent over the same period a year ago.

However, the company faces challenges too, with net sales declining by 9.63 percent year-on-year, totalling ₹340.43 crore, compared to ₹377 crore during the same period last year. Additionally, the debtors turnover ratio has reached its lowest at 6.87 times, suggesting a slowdown in the pace of settling debts.

Recently, Andhra Pradesh, a significant market for IMFL brands, saw changes in pricing and distribution policies, which may have led to a minor decline in net revenue from operations.