MIRA
INFORM REPORT
|
Report Date : |
04.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
RADICO KHAITAN LIMITED |
|
|
|
|
Registered
Office : |
Bareilly Road, Rampur-244901, Uttar Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
21.07.1983 |
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Com. Reg. No.: |
20-027278 |
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Capital
Investment / Paid-up Capital : |
Rs. 266.078 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L26941UP1983PLC027278 |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company shares are listed on the
stock exchange. |
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|
Line of Business
: |
The company’s primary business segment is manufacture and trading in
liquor. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 31000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a fine track. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are
regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central Bureau
of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as
bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank Facilities = A+ |
|
Rating Explanation |
Have adequate degree of safety and carry low credit risk |
|
Date |
January 14, 2014 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank Facilities = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry low credit risk |
|
Date |
January 14, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED BY
Management non Co- Operative (Tel No. 91-595-2350601)
LOCATIONS
|
Registered Office/ Factory 1 : |
Bareilly Road, Rampur-244901, |
|
Tel. No.: |
91-595-2350601/602 |
|
Fax No.: |
91-595-2350009 |
|
E-Mail : |
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|
Website : |
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|
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|
Corporate Office : |
Plot No. J-1, Block B-I, Mohan Co-operative Industrial
Area, Mathura Road, New Delhi-110044, |
|
Tel. No.: |
91-11-40975400/444/ 40975500/555 |
|
Fax No.: |
91-11-41678841/42 |
|
E-Mail : |
|
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|
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|
Factory 2 : |
Plot No. B-24, A-25, Shree Khatushyamji Industrial
Complex, RIICO, Reengus, District Sikar, |
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|
|
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Factory 3 : |
B-3, UPSIDC Industrial Development Area, Phase-I,
Sultanpur Patti, Bajpur District Udham Singh Nagar, |
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|
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Factory 4 : |
S-59, |
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Plant Located: |
44 KM Stone, |
DIRECTORS
As on 31.03.2014
|
Name : |
Dr. Lalit Khaitan |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B. Com. |
|
Date of Appointment : |
20.02.2003 |
|
DIN No.: |
00238222 |
|
|
|
|
Name : |
Mr. Abhishek Khaitan |
|
Designation : |
Managing Director |
|
Qualification : |
BE (Industrial Production) |
|
Date of Appointment : |
20.02.2003 |
|
|
|
|
Name : |
Mr. K P Singh |
|
Designation : |
Whole Time Director |
|
Qualification : |
B.Sc. and DIFAT |
|
Date of Appointment : |
02.12.1996 |
|
|
|
|
Name : |
Mr. Raghupati Singhania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Karna Singh Mehta |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.01.1946 |
|
Qualification : |
FCA, ACIS ( |
|
Experience : |
Expertise in the field of Finance and Accounts |
|
Date of Appointment : |
10.03.2003 |
|
|
|
|
Name : |
Mr. Ashutosh Patra |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.03.1946 |
|
Qualification : |
MA, LLM |
|
Experience : |
Eminent Supreme Court Lawyer & Legal Expert |
|
Date of Appointment : |
28.01.2003 |
|
|
|
|
Name : |
Mr. Sarvesh Srivastava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Shailja Saraf |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Amit Manchanda |
|
Designation : |
Head – Legal and Company Secretary |
|
|
|
|
Name : |
MR. Dilip K. Banthiya |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. Ajay K. Agrawal |
|
Designation : |
President (Finance and Accounts) |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
168595513 |
37.68 |
|
|
139706193 |
31.22 |
|
|
139706193 |
31.22 |
|
|
308301706 |
68.90 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
308301706 |
68.90 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
260726 |
0.06 |
|
|
7771967 |
1.74 |
|
|
56991 |
0.01 |
|
|
8089684 |
1.81 |
|
|
|
|
|
|
71862410 |
16.06 |
|
|
|
|
|
|
28180693 |
6.30 |
|
|
16032350 |
3.58 |
|
|
14971869 |
3.35 |
|
|
14971869 |
3.35 |
|
|
131047322 |
29.29 |
|
Total Public shareholding (B) |
139137006 |
31.10 |
|
Total (A)+(B) |
447438712 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
447438712 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company’s primary business segment is manufacture and trading in
liquor. |
|
|
|
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2014)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Molasses / Grain / malt Spirit |
KL/BL AT 94% |
102460 |
102460 |
90773 |
|
KL/AL |
96312 |
96312 |
85327 |
|
|
Bio Gas |
000 ‘M3 |
No licence
required |
- |
38361 |
|
Pet Bottles |
NOS/1000 |
No licence
required |
600000 |
485547 |
GENERAL INFORMATION
|
Bankers : |
|
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Facilities : |
Note : ·
The above loans are secured
by a pari-passu first charge on gross block of fixed assets of the Company,
both present and future. ·
Non-fund based facilities provided by banks are
also secured by a second charge on the fixed assets of the Company |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financing Institutions : |
Aditya Birla Finance Limited |
|
|
|
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Auditors : |
|
|
Name : |
V. Sankar Aiyar and Company Chartered Accountants |
|
Address : |
Satyam Cinema Building, 2nd Floor, Ranjit Nagar Commercial Complex, New Delhi-110 008, India |
|
|
|
|
Internal
Auditors : |
|
|
Name : |
Grant Thornton Chartered Accountants |
|
Address : |
21st Floor, DLF Square, Jacaranda Marg, DLF Phase II,
Gurgaon – 122002, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Mr. S.N. Balasubramanian Cost Accountant |
|
Address : |
Flat No. H -301, Green Valley Apartment, Plot No.18, Sector -22, Dwarka,
New Delhi -110077, India |
|
|
|
|
Related Parties : |
Sapphire Intrex Limited. |
|
|
|
|
Associates and Joint Venture : |
·
Radico NV Distilleries Maharashtra Limited ·
Radico Global Limited (Associate) |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170000000 |
Equity Shares |
Rs.2/- each |
Rs. 340.000 millions |
|
6000000 |
Preference shares |
Rs.100/- each |
Rs. 600.000 millions |
|
|
|
|
Rs.940.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
133038765 |
Equity shares |
Rs. 2/- each |
Rs. 266.078
millions |
|
|
|
|
|
Note:
1. The company has issued only one class of shares, referred to as equity
shares having a par value of Rs. 2/-
each holder of equity shares is entitled to one vote per share.
2. The company declares and pays dividend in Indian rupees. The dividend
proposed by the Board of Director is subject to the approval of the
shareholders in the ensuring Annual General Meeting.
3. During the year
ended March 31, 2014, the amount of dividend per share recognized for
distribution to equity shareholders
is Rs. 0.80. The total dividend appropriation for the year ended March 31,
2014. Amounted to Rs.124.519Millions including corporate dividend tax of Rs.
18.088 millions.
4.
|
Reconciliation of the number of shares |
No of shares |
|
Outstanding at the beginning of the year |
132,900,380 |
|
Add: Issued during the year under ESOP Scheme |
138,385 |
|
Outstanding at the end of the year |
133,038,765 |
5.
|
Shares held by
each shareholder holding more than 5% shares |
No of shares |
|
Sapphire Intrex Limited |
33,650,000 |
|
Shailaja Finance Limited |
11,491,087 |
|
HSBC Global Investment Funds Mauritius Limited |
9,980,624 |
|
Reliance Capital Trustee Company Limited |
8,305,811 |
6.
Shares reserved
for issue under options: ESOPs: The
Company established Employee Stock Options Plan, duly approved by the
shareholders in the meeting held on 25.05.2006 which is effective from
25.07.2006. Accordingly, the Company has granted 36,50,000 equity options upto
31.03.2014 which will get vested over a period of 4 years from the date of the
grant. The employees have the options to exercise the right within a period of
3 years from the date of vesting. The compensation cost of stock options
granted to employees are accounted by the Company using the intrinsic value
method.
|
Summary of Stock
Option |
No of Stock |
|
Option granted
upto the year end |
3,650,000 |
|
Options
forfeited upto the year end |
1,503,586 |
|
Options
exercised upto the year end |
1,903,549 |
|
Option outstanding
at the year end |
242,865 |
|
Exercise price
(weighted average) |
Rs. 80.58 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
266.078 |
265.801 |
265.408 |
|
(b) Reserves & Surplus |
7544.595 |
7016.124 |
6418.721 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.161 |
|
Total
Shareholders’ Funds (1) + (2) |
7810.673 |
7281.925 |
6684.290 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
4235.835 |
4139.762 |
3383.548 |
|
(b) Deferred tax liabilities (Net) |
695.300 |
588.300 |
563.300 |
|
(c) Other long term liabilities |
12.224 |
0.417 |
18.268 |
|
(d) long-term provisions |
52.184 |
43.358 |
40.210 |
|
Total Non-current Liabilities (3) |
4995.543 |
4771.837 |
4005.326 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
4055.502 |
3054.297 |
2777.079 |
|
(b) Trade payables |
1275.555 |
1172.485 |
1173.761 |
|
(c) Other current
liabilities |
1633.442 |
1540.033 |
1529.645 |
|
(d) Short-term provisions |
386.407 |
209.900 |
152.833 |
|
Total Current Liabilities (4) |
7350.906 |
5976.715 |
5633.318 |
|
|
|
|
|
|
TOTAL |
20157.122 |
18030.477 |
16322.934 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5306.782 |
4865.956 |
4580.330 |
|
(ii) Intangible Assets |
398.220 |
428.352 |
441.838 |
|
(iii) Capital
work-in-progress |
81.206 |
53.274 |
48.438 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
583.679 |
583.679 |
583.809 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1365.231 |
2079.824 |
854.012 |
|
(e) Other Non-current assets |
20.190 |
14.907 |
7.179 |
|
Total Non-Current Assets |
7755.308 |
8025.992 |
6515.606 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
500.000 |
502.205 |
529.566 |
|
(b) Inventories |
2103.125 |
1849.497 |
1774.456 |
|
(c) Trade receivables |
5233.167 |
4353.809 |
3477.921 |
|
(d) Cash and cash
equivalents |
152.851 |
159.968 |
210.385 |
|
(e) Short-term loans and
advances |
4034.754 |
2802.612 |
3472.681 |
|
(f) Other current assets |
377.917 |
336.394 |
342.319 |
|
Total Current Assets |
12401.814 |
10004.485 |
9807.328 |
|
|
|
|
|
|
TOTAL |
20157.122 |
18030.477 |
16322.934 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14517.023 |
12583.893 |
11438.667 |
|
|
|
Other Income |
364.830 |
304.146 |
213.715 |
|
|
|
TOTAL (A) |
14881.853 |
12888.039 |
11652.382 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
6665.234 |
5144.210 |
4686.708 |
|
|
|
Purchases of Stock-in-Trade |
220.459 |
618.126 |
944.127 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(354.681) |
87.729 |
(169.596) |
|
|
|
Employees benefits expense |
931.797 |
787.298 |
706.355 |
|
|
|
Other expenses |
5119.320 |
4104.183 |
3580.282 |
|
|
|
TOTAL (B) |
12582.129 |
10741.546 |
9747.876 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
2299.724 |
2146.493 |
1904.506 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
848.095 |
700.558 |
581.523 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1451.629 |
1445.935 |
1322.983 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
387.534 |
353.111 |
328.394 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
1064.095 |
1092.824 |
994.589 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
351.500 |
320.000 |
357.989 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
712.595 |
772.824 |
636.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2429.784 |
2120.038 |
2396.533 |
|
|
TOTAL EARNINGS |
2429.784 |
2120.038 |
2396.533 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
57.593 |
62.306 |
52.099 |
|
|
|
Stores & Spares |
15.588 |
19.789 |
11.875 |
|
|
|
Purchase |
42.668 |
36.579 |
9.821 |
|
|
|
Capital Goods |
0.000 |
131.836 |
137.353 |
|
|
TOTAL IMPORTS |
115.849 |
250.510 |
211.148 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
2.67 |
2.90 |
2.39 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
4.79 |
6.00 |
5.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.33 |
8.68 |
8.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.46 |
6.28 |
6.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14 |
0.15 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.06 |
0.99 |
0.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.69 |
1.67 |
1.74 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
265.408 |
265.801 |
266.078 |
|
Reserves & Surplus |
6418.721 |
7016.124 |
7544.595 |
|
Net
worth |
6684.129 |
7281.925 |
7810.673 |
|
|
|
|
|
|
long-term borrowings |
3383.548 |
4139.762 |
4235.835 |
|
Short term borrowings |
2777.079 |
3054.297 |
4055.502 |
|
Total
borrowings |
6160.627 |
7194.059 |
8291.337 |
|
Debt/Equity
ratio |
0.922 |
0.988 |
1.062 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
11438.667 |
12583.893 |
14517.023 |
|
|
|
10.012 |
15.362 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
11438.667 |
12583.893 |
14517.023 |
|
Profit |
636.600 |
772.824 |
712.595 |
|
|
5.57% |
6.14% |
4.91% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
No |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
two years |
Yes |
|
12] |
Profitability for last
two years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
No |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
--- |
|
22] |
Litigations that the firm
/ promoter involved in |
--- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
--- |
|
26] |
Buyer visit details |
--- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
Operations Review:
FY2014 was a very
challenging year for the overall economy. Despite these short term challenges,
the Company was able to sustain growth and profitability. Radico Khaitan has a
long standing, successful strategy of premiumization which is evident from the
performance of Prestige and Above category brands which registered a strong
growth of 20.7% y-o-y in FY2014 to reach 371.700 millions cases. Overall IMFL
volume was 20.360millions cases, representing a growth of 7.1%. Furthermore,
Prestige and Above category brands as a percentage of total IMFL sales
increased from 16.2% in FY2013 to 18.3% in FY2014. Prestige & Above brands
sales revenue accounted for 37% of total IMFL sales in FY2014 compared to 35%
in FY2013. Net Sales was Rs. 18572.000 millions an increase of 8.2% compared to
the same period last year driven by a robust performance of Prestige &
Above brands. EBITDA increased by 10.7% to Rs.2126.000 millions and margins
improved by 26 basis points to 11.4% compared to FY2013.
Radico Khaitan’s
Magic Moments vodka continued to be the market leader in the fast growing
premium vodka segment. Encouraged by the success of Magic Moments, the Company
launched Verve super premium vodka
in October 2012.
In FY2014, this was followed by the launch of Verve Magic Moments Green Apple
and Verve Magic Moments Orange Flavoured premium vodka in North India and
select states in West India. Within few months of its launch, the new variants
of Verve vodka received the Gold award at the coveted Monde Selection
Quality awards 2014.
During the year, the Company also launched Morpheus Blue, an upgraded version
of the super premium Morpheus Brandy to further strengthen its premium product
offerings.
Future Outlook and Strategy:
The ongoing
developments in the Indian spirits industry and changing consumer preferences
are expected to
result in a
structural shift from volume based growth to value driven business model.
According to Euromonitor, IMFL volume is expected to reach 2,979 million liters
or 331 million cases. During the 2014-18 period IMFL sales value is expected to
grow at a CAGR of 7.9%. Key drivers of this growth are changing preference of
customers due to rising per capita income, higher aspiration level, favourable
demographic profile, increasing urbanization and better penetration. As a
result of inclusion of higher number of youngsters in the working population,
all the major spirits manufacturers are focused on launching new value added
products to capitalize on this opportunity. Innovative packaging and consumer
preferred variants are new trends to generate mass appeal. This structural
change may also result in further consolidation of the industry to achieve
operational efficiencies and strengthening of market position for the larger
and established companies.
With this changing
environment, Radico Khaitan’s longstanding and successful premiumization
strategy will improve the Company’s revenue and profitability in the near term.
The Company continues to make investment in developing new products and
variants. Our investments in brand building over the past couple of years have
resulted in a large consumer base outside India. Going forward the Company
expects to increase profitability in exports business through focus on premium
brands and newer geographies.
Industry Overview:
The Indian Consumer Growth Story
During FY2014, the Indian economy growth slowed down significantly to
below 5%. Inflation, measured by the
Consumer Price Index (CPI), remained at uncomfortable high levels during
the year at around 8-10%. As a result, consumers have traded-down to cheaper
options or reduced the consumption volume by postponing purchases. As per a
Neilsen report, FMCG sector growth in CY2013 was over 9% with just 1% volume
growth well below the 18% growth in CY2012. In the recent years, premiumization
has enabled manufacturers to drive value growth with consumers who have lower
price sensitivities.
Despite the short
term challenges, the long term consumer growth story of India remains intact.
The Indian economy is expected to recover and grow by over 6% in the next
fiscal year. The favourable demographic profile
supported by the
expected recovery in the economic activity will drive the consumer expenditure.
Furthermore, the emergence of social media has resulted in creating brand
awareness and focus on quality aspect of a product, primarily among the younger
generation. During FY2014, India’s per-capita income at current prices is
estimated to have increased by 9.6% to reach $1,240. The increase in disposable
income driven by a rise in the income levels is expected to drive demand for
better quality and branded products. Also, the rural consumption growth has
been outperforming urban levels with significantly higher incremental
consumption expenditure.
The Indian Spirits Industry
The
Indian spirits industry is experiencing a structural shift from volume based
growth to value based business
model.
As a result, the larger spirit manufacturers are focused on providing premium
category brands to their customers. This trend is clearly evident from the fact
that despite a volume growth of only 3.4% in 2013, the sales value increase by
8.8% compared to same period last year. Changing customer preferences and
rising income levels have led this transformation. Furthermore, the ongoing
development in the industry and government’s continued support for the branded
IMFL spirits over country liquor have driven industry premiumization. These
trends are expected to continue to support the industry’s focus on higher quality
and premium brands. As per Euromonitor, the total IMFL sales volume during 2013
was 2,513 million liters epresenting 279 million cases.
ANNUAL REPORT 2013-14RADICO KHAITAN LIMITED
Traditionally,
brown spirits which includes whisky, brandy and dark rum has been the major
contributor towards the overall IMFL sales. During 2013, whisky constituted the
largest segment with 59% of the sales volumes and 72% of the value. Whisky
volumes increased by 4.4% during the year, whereas value growth was
significantly higher at 9.8% compared to the same period last year. The value
growth for white spirits remained flat and rum increased marginally by 1.8%. Of
the total vodka sales of 76 million litres in 2013, 51% was contributed by
premium and super premium category. Vodka registered a 5 year (2008-13)
compounded growth of 10.8% and 13.9% in terms of volume and value,
respectively. Premium category vodka volumes increased by 15.7% during 2013.
Relatively higher level of social acceptance for alcohol on account of an improved
lifestyle and increased consumption among women has led the growth in vodka.
During FY2013, the
spirits industry experienced increases in the prices of raw materials, in
particular ENA and very limited price hikes to fully absorb the cost increases.
Further, during the year excise duties and VAT rates were also increased across
various states which impacted volumes growth. Despite these industry trends,
the larger spirits companies were able to sustain profitability due to their
ongoing premiumization strategy and selective price increases. As per the
Indian Sugar Mills Association (ISMA), total sugar production as of April 2014
decreased to 23.8 million tonnes from 24.6 million tonnes compared to the same
period last year. This decline in the sugar production coupled with overall
strong demand for molasses across user industries has resulted in ENA price
increases during the year. However, capacity increases for grain based molasses
is likely to ease pricing pressure in the medium term.
Industry Outlook
According to
Euromonitor, IMFL volume is expected to reach 2,979 million liters or 331
million cases in 2018. During the 2014-18 period IMFL sales value is expected
to grow at a CAGR of 7.9%. Key drivers of this growth are changing preference
of customers due to rising per capita income, higher aspiration level,
favourable demographic profile, increasing urbanization and better penetration.
Industry’s recent focus on premium brands has enabled manufacturers to find
consumers who have relatively lower price sensitivities that ultimately drive
value growth. Single Malt Scotch and Blended Scotch are expected to be leading
the volume growth with 2014-18 CAGR of 17.7% and 12.7%, respectively. During
2013, premium and super premium category vodka accounted for more than 50% of
the total vodka volumes compared with around 30% levels 5 years ago. This trend
is expected to continue and share of premium category vodka will improve going
forward.
The economic growth
of India is expected to have bottomed out and has shown signs of improvement in
the recent quarters. This economic recovery coupled with improvement in
employment levels will further contribute to increase in the consumption
expenditure. As a result of inclusion of higher number of youngsters in the
working population, all the major spirits manufacturers are focused on
launching new value added products to capitalize on this opportunity. With the
anticipated economic growth revival and an attractive demographic profile of
higher number of youth and women consumers, the Indian IMFL industry is
expected to continue its growth momentum. Premium brands are expected to make
increasing contribution in the growth of the IMFL industry.
Innovative
packaging and consumer preferred variants are new trends to generate mass
appeal. This trend of new launches to gain market share is also expected to
increase the advertisement, brand building and R&D spend across the
industry. However, the focus on premium brands will absorb the increase in cost
and will help the manufacturers to improve their margins. This structural
change may also result in further consolidation of the industry to achieve
operational efficiencies and strengthening of market position for the larger
and established companies.
3
Performance Overview:
Net Sales
increased by 8.2% compared to the same period last year driven by a robust
performance of Prestige & Above brands. IMFL sales contributed in excess of
75% of total sales with volume growth of 7.1% and sales value growth of 14.7%
during the year.
Operational EBITDA
increased by 10.7% and margins improved by 26 basis points to 11.4% compared to
the previous year. Margin expansion was constrained by higher ENA costs that
increased by Rs. 17.6 Crore or 5.1%
compared to
FY2013. Advertising & Promotion expenses increased to Rs. 128.4 Crore
compared to Rs. 116.4 Crore last year. These marketing campaigns reflect
continued investment in both new product launches and the existing brand
portfolio.
Operational Net
Income increased by 6.3% compared with same period last year. Net Interest
expense increased from Rs. 418.000 Million in FY2013 to Rs. 500.000 Million in
FY2014.
Business Strategy
New Launches to Support Premiumization Strategy
During the year,
the Company launched Morpheus Blue, an upgraded version of the super premium
Morpheus brandy to further strengthen its premium portfolio. Radico Khaitan
also expanded its premium vodka portfolio with the launch of two additional
flavours of Verve Magic Moments vodka. These new flavours, Verve Magic Moments
Green Apple and Verve Magic Moments Orange, were initially launched in the
first phase in North India and selected states in West India. Radico Khaitan
plans to gradually roll-out the brands across India. These flavours of Verve
vodka are superior quality premium category products emblematic of youthful
energy with a stylish modern appeal.
Both the flavours possess a perfect blend of purity and smoothness with a
unique five stage slow filtration process using silver and platinum filters.
The Company continues to make investment in developing new products and
variants.
Awards and Recognitions
Indspirit 2014 ‘Popular Product of the Year’ Award: Magic Moments vodka
Monde Selection (International
Institute for Quality Selection) 2014 awards:
•
Grand Gold Award: Magic Moments Remix Lemon Grass
& Ginger flavoured vodka
•
Gold Award: Verve Magic Moments Super Premium vodka
•
Gold Award: Verve Magic Moments Green Apple Premium
flavoured vodka
•
Gold Award: Verve Magic Moments Orange Premium
flavoured vodka
•
Gold Award: Magic Moments vodka
•
Gold Award: Magic Moments vodka (5 flavours: Green
Apple, Orange, Lemon, Chocolate and Raspberry)
•
Gold Award: Morpheus XO Blended Premium brandy
In addition, senior management of the Company received the following
awards:
•
Dr. Lalit Khaitan received the ‘Legend of the
Industry’ award at Spiritz 2014, in addition to Radico Khaitan receiving the
‘Brand Premiumisation Award’ and ‘Excellence in Marketing Award’
•
Mr. Abhishek Khaitan received the Indspirit 2014
‘Young Entrepreneur of the Year’ Award
UNSECURED LOANS
|
Unsecured Loans |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
From Banks |
500.000 |
150.000 |
|
Total |
500.000 |
150.000 |
Note:
Loans from banks – secured by hypothecation of inventories and book debts. Further secured by a second charges on fixed assets of the company.
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
|
|
|
Quarter Ended (Unaudited) |
|
|
31.12.2014 |
|||
|
Unaudited |
|||
|
1 |
Income From
Operations |
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
3608.320 |
|
|
|
b. Other Operating Income |
90.918 |
|
|
|
Total Income from
Operations (Net) |
3699.238 |
|
|
2 |
Expenditure |
|
|
|
|
a. Cost of material Consumed |
1687.849 |
|
|
|
b. Purchase of Stock-in trade |
40.774 |
|
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
41.386 |
|
|
|
d. Employees Benefit Expenses |
241.313 |
|
|
|
e. Depreciation and Amortisation Expenses |
105.000 |
|
|
|
f. Other expenses |
466.705 |
|
|
|
g. selling and distribution |
738.283 |
|
|
|
Total Expenses |
3321.310 |
|
|
3 |
Profit from Operations
before Other Income, Interest and Exceptional Items |
377.928 |
|
|
4 |
Other Income |
93.260 |
|
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
471.188 |
|
|
6 |
Finance Costs |
225.685 |
|
|
7 |
Profit from ordinary
activities after finance costs & exceptional items |
245.503 |
|
|
8 |
Exceptional items |
0.000 |
|
|
9 |
Profit from
ordinary activities before tax |
245.503 |
|
|
10 |
Tax Expense |
80.000 |
|
|
11 |
Net Profit from
ordinary activity after tax |
165.503 |
|
|
12 |
Extraordinary Items |
0.000 |
|
|
13 |
Net Profit After
Tax |
165.503 |
|
|
14 |
Paid-up equity share capital (face value of Rs.2 per share) |
266.078 |
|
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
0.000 |
|
|
16 |
Earning Per Share (of Rs.2 each) (not annualized) |
|
|
|
|
Basic EPS |
0.124 |
|
|
|
Diluted EPS |
0.124 |
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
17 |
Public Shareholding |
|
|
|
|
- No. of shares |
79208947 |
|
|
|
- Percentage of shareholding |
59.54 |
|
|
18 |
Promoter &
Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- No. of shares |
12081429 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
22.44 |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
9.08 |
|
|
|
b) Non-encumbered |
|
|
|
|
- No. of shares |
41748389 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
77.56 |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
31.38 |
|
Note :
1. The above financial results were reviewed by the audit committee and
taken on the Board of Directors in their meeting held on 12th August
2014.
2. The statutory auditors have carried out a limited review of the financial
results for the quarter ended 30th June 2014.
3. The company also gets its products manufactured under various
arrangements with other distilleries / bottling units spread all over the
country. The Gross Sales for the company’s products through these operations
not include in the above sales figures, are – (Rs. In millions) (1) 3768.689
(2) 3742.800 (3) 3626.998 (4) 14229.237 column-wise respectively. The resultant
income to Radico Khaitan Ltd (RKL) from these operations is included
hereinabove.
4. The company has one major operational business segment viz. liquor and
related products, which accounts for more than 90% of the total turnover of the
Company.
5. Consequent to the application of para 46A in AS-11 vide notification
dated 29th December 2011, the company has written off a sum of
rs.1853.00millions on account of foreign exchange translation variation in long
term foreign currency borrowings.
6. The figures of the quarter ended 31st March 2014 are the
balancing figure between the audited figures upto nine months of the relevant
financial year.
7. Previous year / period figures have been regrouped / rearranged, wherever
necessary to make them comparable with current period figures.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10446351 |
08/08/2013 |
500,000,000.00 |
ADITYA BIRLA
FINANCE LIMITED |
Indian Rayon
Compound,, Veraval, Gujarat - 362266, |
B83686147 |
|
2 |
10406569 |
22/07/2014 * |
500,000,000.00 |
IDBI Bank
Limited |
3rd Floor,Indian
Red Cross Society Building,, 1,R |
C17039280 |
|
3 |
10373231 |
22/07/2014 * |
500,000,000.00 |
State Bank of
Hyderabad |
74 Janpath, New Delhi,
Delhi - 110001, INDIA |
C17157769 |
|
4 |
10300199 |
29/07/2011 * |
668,850,000.00 |
STATE BANK OF
INDIA |
SINGAPORE
BRANCH, 135 CECIL STREET# 02- 00, SINGA |
B18716969 |
|
5 |
10291654 |
01/06/2011 |
250,000,000.00 |
ICICI BANK
LIMITED |
LANDMARK, RACE
COURCE CIRCLE, VADODARA, Gujarat - |
B14803399 |
|
6 |
10291657 |
29/07/2011 * |
1,305,549,600.00 |
ICICI BANK
LIMITED |
LANDMARK, RACE COURSE
CIRCLE, VADODARA, Gujarat - |
B17439159 |
|
7 |
10276534 |
29/07/2011 * |
920,000,000.00 |
ICICI BANK
LIMITED |
LANDMARK, RACE
COURCE CIRCLE, VADODARA, Gujarat - |
B17439936 |
|
8 |
10170457 |
07/12/2010 * |
800,000,000.00 |
IDBI BANK
LIMITED |
IDBI BANK
LIMITED, IRCS, BUILDING, 1,, RED CROSS |
B02299998 |
|
9 |
10170461 |
04/08/2009 |
400,000,000.00 |
IDBI BANK
LIMITED |
IDBI BANK LIMITED,
11th Floor,Surya Kiran Buildni |
A67363796 |
|
10 |
10171643 |
03/08/2009 |
500,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN |
A67815563 |
FIXED ASSETS
·
Building
·
Vehicles
·
Plant and machinery
·
Office equipment
·
Leasehold land
·
Freehold land
·
Furniture and fitting
·
Goodwill
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.61 |
|
|
1 |
Rs.100.27 |
|
Euro |
1 |
Rs.78.20 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.