Gold Silver Reports (GSR) – Radico Khaitan Stock Expects Double-Digit Revenue Growth In 2018-19 – Alcohol maker and distributor – Radico Khaitan expects double-digit growth in its revenue during the current financial year, its Chief Financial Officer Dilip Banthiya told BloombergQuint in an interview.
Key highlights form the conversation:
✅ Business back to normalcy from October after GST, highway ban.
✅ Witnessed growth the brand business in the last two quarters.
✅ Premium brands growing at over 10 percent, popular brands also doing well.
✅ Expect double-digit growth in prestige and above brands in 2018-19.
✅ Will reap the benefits from excise policy shift in Uttar Pradesh.
✅ Focus on free cash flow, net debt reduced to Rs 570 crore at the end of March 2018
✅ See a significant reduction in debt by 2020, should be debt free by 2021.
✅ Expect margins to be sustainable due to benign raw material prices.
✅ Operating margins should continue to improve for 2-3 years.
✅ Interest costs to fall as Radico Khaitan reduces debt.
✅ Expect total comprehensive income to grow faster.
✅ Expect double-digit topline growth in 2018-19
✅ Paid off Rs 215 crore debt in the previous financial year, will cut debt at a faster rate in the current and the next financial year.
✅ See good consumer demand in Uttar Pradesh.
✅ U.P. excise policy shift will benefit large players.
✅ Expect 15-20 percent industry growth in U.P.
✅ Expect to do better than the industry average in U.P.
✅ Large players to benefit post consolidation in the liquor industry.
✅ Penetration, per capita consumtion of liquor is still low in India.
✅ As GDP and per capita income grows, so will discretionary spend.
