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Radico Khaitan Limited: Announces second quarter results for FY2015

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Pune (Nov. 11, 2014):  RadicoKhaitan Limited, one of the largest spirits companies in India (referred to as “RadicoKhaitan” or the “Company”), announces its Unaudited Second Quarter Results for FY2015, in accordance with Indian GAAP.

Commenting on the performance, Dr. LalitKhaitan, Chairman and Managing Director said:
“This has been a quarter with some exciting developments both on the operational and financial fronts. I am pleased to report that in November 2014 we received price increase in the state of Tamil Nadu which is one of the largest liquor consuming states in India. We expect other key states to follow, resulting in significant improvement in the industry profitability. During the first half of the year, we generated free cash flow which enabled us to start deleveraging our balance sheet inline with our strategy. Ongoing premiumization coupled with gradual price revisions will result in enhanced shareholders return in the near term.”

Commenting on the performance, Mr. AbhishekKhaitan, Managing Director said:
“Q2 FY2015 net sales growth was 3.8% driven by the Prestige &Above category brand sales. During the quarter, we continued to face operating challenges with increasing input costs and our ENA input cost increased by 7.5% y-o-y. However, the recent price increase is a very encouraging development for the industry and we believe that RadicoKhaitan is very well positioned to benefit from this trend.”

Performance Highlights: Q2 FY2015 vs. Q2 FY2014
· Net Sales of Rs. 463.2 Crore, up 3.8%
· Prestige & Above brands volume growth of 10.5%
· Prestige & Above brands increased from 18.4% to 21.1% of total IMFL volumes
 Operational  margins·EBITDA of Rs. 47.5 Crore at 10.3%
 Operational ·Net Income of Rs. 19.5 Crore
 Positive  reduction of Rs. 45.0 Crore since·free cash flow generation and debt March 2014 (5% of the total debt as of March 2014)
 Price  (effective from November·increases received in the state of Tamil Nadu 1, 2014), one of the largest liquor consuming states; other key states in progress