Tilaknagar Industries Limited — PPTs, 04-02-2025: Investor Presentation

**Financial Highlights:** Q3 FY25 saw a primary volume growth of 2.3%, largely impacted by changes in route-to-market (RTM) in Andhra Pradesh and a price reduction for Mansion House Brandy. Excluding Andhra Pradesh, volume growth reached 10% YoY, with secondary volumes up 9%. Revenue decreased by 9.6%, but EBITDA increased by 17.4% to ₹60 Cr, and the EBITDA margin improved by 408 bps to 17.7%. Profit after tax rose 23.2% to ₹54 Cr, benefiting from reduced finance costs, while gross debt was reduced to ₹45 Cr.

**Strategic Initiatives and Growth Drivers:** The company has begun a significant push into the luxury and craft spirit market, launching the Monarch Legacy Edition Brandy, which has garnered positive feedback. The transition period in Andhra Pradesh is expected to yield growth, with secondary volumes already showing positive trends.

**Business Developments:** Key market share gains were reported across several states, including Karnataka and Tamil Nadu, despite the transition challenges in Andhra Pradesh. The company fully repaid its term loan, achieving a net debt-free status.

**Market Position and Competitive Advantage:** Tilaknagar Industries is now the third-largest player in Telangana and Karnataka's P&A IMFL sector and holds a leading position in Puducherry. Their strategic focus on premiumization and innovative product launches, such as Mansion House Whisky and flavored brandies, positions them to capitalize on market trends.

**Investor Implications:** The operational restructuring and strategic focus on premiumization suggest a positive outlook for Tilaknagar Industries, potentially leading to significant revenue recovery and growth in 2025. Investors should watch for the proposed growth trajectory as the company moves past its transitional challenges.