The Hindu Business Line : Radico net up 60 pc in Q3

DESPITE a sharp rise in the cost of molasses, liquor manufacturer Radico Khaitan said on Monday that its profit in the third quarter of the current fiscal has increased by 60 per cent to Rs 10.95 crore compared with Rs 6.85 crore in the corresponding period of the previous year.

The company's total turnover grew by 36 per cent to Rs 268 crore in October-December 2004 from Rs 196 crore in the corresponding period in 2003.

Speaking to Business Line, Mr Abhishek Khaitan, Managing Director, Radico Khaitan Ltd, said that the company was able to offset the sharp increase in material costs by higher sales volumes of its products, particularly of the newly acquired brands (which include Whytehall whisky, Black Cat as well as recent product diversification under the 8PM brand).

While the company sold 1.7 million cases in October-December 2003, this rose to 2.7 million cases in October-December 2004 with 20 per cent of sales coming from the new brands/products. "In addition, our flagship brand 8PM whisky saw a volume growth of 46 per cent in October-December 2004," Mr Khaitan said.

Meanwhile, with a more than 100 per cent increase in price of molasses in recent months, Radico Khaitan is looking at a fresh round of price increase in April. The price increase is likely to be in the region of about 8 per cent to 10 per cent. The company had increased prices of its products by the same amount in the middle of last year.

Radico Khaitan is aiming at a profit growth of 47 per cent in the current fiscal.

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