Tilaknagar Industries Q4 Results - Inline, Strong Margins Offset By Flat Topline Given A High Base: Systematix

Systematix Research Report

Tilaknagar Industries Ltd. reported revenue/ Ebitda/ Profit after tax growth of 0.4%/ 10.9%/ 20.9% YoY respectively. Revenue growth was muted at 0.4% on a high base in Q4 FY23 as the growth in the base quarter was boosted by aggressive primary sales helped by the equity funds raised in December 2022, further impacted by the company slowing down on pushing sales in Telangana.

Volume growth stood at 0.4% to 2.9 million cases while net sales realization grew 6.3% YoY to Rs 1,293 per case. Gross margin saw a sharp improvement to 48.5% (plus 380 basis points, YoY) despite ENA inflation led by premiumization, price hikes in key states and cost optimizations.

Ebitda margin came at 13.4% (plus 128 basis points, YoY) despite employee cost and other expenses seeing an increase of 167 basis points and 86 basis points respectively. Reported Ebitda at Rs 482 million grew 11% YoY.

Adjusted Profit after tax grew 21% to Rs 395 million led by significant reduction (-38%) in finance costs and flattish depreciation. As a result of strong cash generation, CFO increased from Rs 712 million in FY23 to Rs 1.2 billion in FY24, which helped the Tilaknagar Industries reduce net debt significantly from Rs 1.82 billion in FY23 to Rs 740 million in FY24, a reduction of Rs 450 million in Q4 FY24.

Tilaknagar Industries expects volumes to grow in mid double digits and revenue growth to be 300-400 basis points higher compared to volume growth going forward.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.