Tilaknagar Industries Shares Hit Three-Month High On Q4 Profit Surge

Shares of Tilaknagar Industries rose on Thursday to hit a three-month high after its fourth quarter profit rose over 146%.

The alcohol maker recorded a consolidated net profit of Rs 77.3 crore for the quarter ended March, compared to Rs 31.4 crore in the same quarter of the previous fiscal, according to its stock exchange notification.

Revenue increased by 14.3% year-on-year for the three months ended March, reaching Rs 881 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 63% year-on-year to Rs 78.4 crore. The Ebitda margin expanded 270 points to 8.9%.

The company sold 34.2 lakh cases in the fourth quarter, a 20.1% year-on-year increase from 28.5 lakh cases sold in the same period last year, according to an investor presentation by Tilaknagar Industries. Volumes were mainly driven by strong growth in Andhra Pradesh, Karnataka, and Tamil Nadu.

The company added it is net debt-free and has a cash position of Rs 107 crore.

"Quarterly growth was driven by resumption of strong performance in our largest state of Andhra Pradesh, both on YoY and QoQ terms," said Amit Dahanukar, chairman and managing director at Tilaknagar Industries.

Shares of Tilaknagar Industries rose as much as 13.91% to Rs 344.80 apiece, the highest level since Feb. 10. They pared gains to trade 10.56% higher at Rs 334.65 apiece, as of 12:28 p.m. This compares to a 0.13% decline in the NSE Nifty 50.

The stock has risen 44.87% in the last 12 months and fallen 20.36% year-to-date. Total traded volume so far in the day stood at 10 times its 30-day average. The relative strength index was at 57.79.

The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 38.4%.