Amit Dahanukar Chairman & Managing Director Tilaknagar Industries Ltd.
How do you expect your margins to trend in the coming years? Are there any cost-saving measures or pricing strategies that you anticipate will impact margins?
In the medium to long term, we believe that Tilaknagar Industries' margins will continue to expand. During the previous quarters, inflationary pressures have been apparent and persistent in the alcohol beverage sector, especially with regard to raw materials. Despite this, the company's operating margins have been expanding on the back of price increases in key markets, the prevailing trend in favour of premium quality, state mix and the operating leverage on account of increasing volumes.
In the financial year ended March 2024, Tilaknagar Industries' earnings before interest tax depreciation and amortisation (EBITDA) jumped by over 35.2 per cent to ₹185 crore as against ₹137 crore in FY23. In addition to this, the company's EBITDA margin also expanded by more than 150 basis points (bps) to 13.3 per cent in FY24 from 11.8 per cent in FY23. As on March 31, 2024, Tilaknagar Industries' gross and net debt stood at *119 crore and ₹74 crore, respectively. With an aim to go near net-debt free by March 2025, the company has reduced its debt by more than ₹130 crore during the last financial year.
As a result, the company has witnessed a significant reduction in its interest costs which has further improved the profit after tax (PAT) margins and strengthened the cash flows. In FY24, the company reported PAT, excluding exceptional items, at ₹141 crore, recording an impressive growth of 95 per cent over FY23, and a margin expansion of 385 bps. In FY24, the company further strengthened its brandy leadership through a steady mix of market share gains with the help of premium millionaire brands 'Mansion House Brandy' and 'Courrier Napoleon Brandy.
This story is from the July 1, 2024 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 1, 2024 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
