Q3 2024 Associated Alcohols & Breweries Ltd Earnings Call Transcript
Key Points
- Associated Alcohols & Breweries Ltd (BOM:507526) reported a 23% year-on-year growth in EBITDA for Q3 FY24, with an EBITDA margin expansion of 200 basis points.
- The company has successfully commercialized a 130-KLPD grain-based ethanol plant, which is expected to operate at full capacity from February 2024.
- Introduction of new premium products such as Central Province Rum and handcrafted Gin Nicobar, aligning with the company's premiumization strategy.
- Strong revenue growth in the IMFL proprietary category, with expectations of 15% to 18% year-on-year growth.
- Plans to expand into new markets including Karnataka, Maharashtra, Goa, and Pondicherry, with a subsidiary formation in Uttar Pradesh to leverage favorable manufacturing incentives.
- Subdued rum sales due to warmer than usual winter, impacting overall sales performance.
- Slight margin pressure attributed to increased grain prices and elevated costs of other critical materials.
- IMIL segment faced a decrease in volume and revenue due to changes in the policy of the Madhya Pradesh government.
- Substantial increase in excise duty expenses due to entering new states and changes in state policies.
- Challenges in stabilizing the new ethanol plant, with initial operational adjustments expected to impact short-term performance.
Ladies and gentlemen, good day and welcome to the Q3 FY24 Earnings Conference Call of Associated Alcohols & Breweries Limited hosted by Go India Advisors. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Priya Sen from Go India Advisors. Thank you and over to you, Ms. Sen.
Thank you, Michelle. Good afternoon, everybody and welcome to Associated Alcohols & Breweries Limited Earnings Conference Call to discuss the Q3 and 9-month FY24 results. We have on the call Mr. Tushar Bhandari, Whole-Time Director and Mr. Ankit Agrawal, Chief Financial Officer.
We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Tushar Bhandari to take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you and over to you, sir.
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