Associated Alcohols & Breweries Ltd. — PPTs, 24-01-2025: Investor Presentation

**Financial Highlights:**

In Q3 FY25, Associated Alcohols & Breweries reported a remarkable net revenue increase of 71% to ₹3,270 million, with EBITDA rising 94% to ₹395 million, leading to an EBITDA margin expansion of 100 bps to 12%. Profit After Tax witnessed robust growth, hitting ₹261 million, up 107% YoY, translating to a diluted EPS of ₹14.04, reflecting an increase of 102%.

For the first nine months of FY25, revenues increased by 61% year-over-year to ₹8,334 million, while EBITDA rose 59% to ₹926 million, maintaining an 11% margin. Profit After Tax reached ₹591 million, a growth of 54% YoY, with a diluted EPS of ₹31.82, marking a 50% increase over the prior year.

**Strategic Initiatives and Growth Drivers:**

The company has experienced strong YoY volume growth in its IMFL proprietary segment at 23%, driven by successful brand strategies, despite a challenging industry backdrop. The rising average grain prices posed cost challenges, yet company-wide operational efficiencies facilitated margin improvements. Future launches, including a ready-to-drink (RTD) product, are projected for Q4 FY25.

**Business Developments:**

AABL aims for geographical expansion, with plans to penetrate high-potential markets, although some delays are noted due to approval processes.

**Market Position and Competitive Advantage:**

With a strong presence in the liquor value chain, AABL benefits from a robust integrated manufacturing facility situated in Madhya Pradesh, optimizing raw material sourcing and enhancing operational efficiencies.

**Investor Implications:**

Investors should watch closely as AABL demonstrates a positive growth trajectory backed by solid financial health and operational efficiency. The integration of the new ethanol segment is strategically enhancing revenue streams, while the focus on premiumization positions the company favorably within the expanding Indian alcobev market.