Radico Khaitan tumbles 5% as firm post flat Q4 net profit

NEW DELHI: Shares of Radico Khaitan tumbled 5 per cent in trade on Wednesday after the company said its net profit remained for the March quarter remained largely flat at Rs 14.8 crore amid a 6.6 per cent fall in Indian-made foreign liquor (IMFL) volumes.

The liquor maker had posted a net profit of Rs 14.9 crore for the same period of 2014-15 fiscal.

Following the numbers, the stock plunged 4.67 per cent to hit a low of Rs 87.20 on BSE.

Net sales of the company rose to Rs 436.4 crore for the fourth quarter, as against Rs 419.4 crore in the year-ago period, the company said in a statement.

The company's ongoing focus on premiumisation coupled with cost optimisation efforts resulted in improved profitability, managing director at Radico Khaitan, Abhishek Khaitan said.

“Despite a 6.6 per cent decline in the company's overall IMFL volumes, it was able to improve profitability,” Khaitan told PTI.

The Board of the company has recommended an annual dividend Re 0.80 (40%) for the financial year ended March 31, 2016.