homebusiness Newscompanies NewsRadico Khaitan faces investors wrath as profits fall sharply on higher input costs

Radico Khaitan faces investors wrath as profits fall sharply on higher input costs

Liquor firm Radico Khaitan's shares corrected sharply on Dalal Street on Tuesday after the company reported a decline its net profit as higher input costs impacted margins. Radico's revenues overall have increased, however.

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By CNBCTV18.com May 31, 2022 2:15:18 PM IST (Updated)

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Radico Khaitan faces investors wrath as profits fall sharply on higher input costs
Radico Khaitan shares fell more than 5 percent on Tuesday, a day after the liquor maker announced its results for the January-March 2022 quarter.

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The company's net profit declined 32 percent on higher input costs for the fourth quarter. Radico's revenues for the January-March quarter surged 9.4 percent to Rs 3,224.45 crore on a year-on-year basis. Its revenue in the corresponding quarter last year came in at Rs 2,946.43.
Radico's total expenses were at Rs 3,163.50 crore, up 10.46 percent in the fourth quarter, as against Rs 2,863.89 crore.
"The increase in other expenses is due to higher power & fuel cost and other production-related overheads. The base quarter was also impacted by the second wave COVID-19," Radico said in the filing.
Source: Yahoo Finance
Radico Khaitan stock price touched an intra-day low of Rs 768.85, falling 5.73 percent, after opening at Rs 769.05.
The liquor stock is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
In the last one year, Radico has given a return of 29.5 percent to investors, outperforming the benchmark Sensex by over 22 percent. During the same period, the frontline BSE index has given a return of 7 percent. So far this year, Radico has corrected 36 percent.
Dr. Lalit Khaitan, chairman & managing director Radico Khaitan said that the company has delivered a double-digit IMFL (Indian-made foreign liquor) volume growth during the year driven by the strong performance of Prestige & Above category.
"As we navigate through the challenging cost environment, we will focus on strengthening our product mix and driving supply chain efficiencies," Khaitan added.

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