MARKETS

Tilaknagar Industries tumbles after Tamil Nadu govt proposes 14.5% tax on liquor

MoM Team / Mumbai, Mar 26, 03:23 PM

Tilaknagar Industries fell 4% at Rs 55.50 at 15:20 IST on BSE on reports the Tamil Nadu government today, 26 Monday 2012, proposed a 14.5% tax on liquor.

Meanwhile, the BSE Sensex was down 311.04 points, or 1.79%, to 17,050.70.

On BSE, 88,000 shares were traded in the counter as against an average daily volume of 3.59 lakh shares in the past one quarter.

The stock hit a high of Rs 58 and a low of Rs 55 so far during the day. The stock had hit a 52-week high of Rs 70.65 on 7 April 2011. The stock had hit a 52-week low of Rs 27.50 on 3 October 2011.

The stock had underperformed the market over the past one month until 23 March 2012, gaining 3.21% compared with the Sensex's 3.96% fall. The scrip had, however, outperformed the market in past one quarter, soaring 62.59% as against 10.31% rise in the Sensex.

The small-cap liquor maker has an equity capital of Rs 115.47 crore. Face value per share is Rs 10.

Tilaknagar Industries (TI) is a well-established player in the expanding Indian Made Foreign Liquor (IMFL) industry in India. Tilaknagar Industries is a dominant player in the South Indian states including Andhra Pradesh, Kerala and Tamil Nadu.

Meanwhile, Tilaknagar Industries announced during trading hours today, 26 Monday 2012, that it acquired 90% stake in Shivprabha Sugars.

"Sholapur-based Shivprabha Sugars has obtained the necessary permissions for setting up - 2500 tons of cane per day (TCD) sugar plant, 30 kilo litres per day (KLPD) distillery and 12 megawatts (MW) Co-gen power plant. TI always aims to maximize its operational efficiencies and this acquisition will help TI gain un-interrupted supply of raw materials in the long term and help us manage our production costs in an optimal manner," said Mr.Lalit Sethi, President and Chief Financial Officer, Tilaknagar Industries.

Molasses being one of the key inputs for an alcoholic beverage company, the acquisition will help TI become substantially self-reliant. "The announced acquisition is in line with our plans to create greater operating security, strengthen our manufacturing system and have higher levels of consolidation throughout our operations," said Mr. Lalit Sethi, President & Chief Financial Officer, Tilaknagar Industries.

On a consolidated basis, Tilaknagar Industries' net profit rose 50.9% to Rs 16.63 crore on 16.5% growth in net sales to Rs 148.81 crore in Q3 December 2011 over Q3 December 2010.

Tilaknagar Industries (TI) is one of the renowned Indian Made Foreign Liquor players (including whisky, brandy, gin, rum and vodka) with presence across India. The company manufactures, markets and sells more than 40 brands across all price points. TI's subsidiaries are Prag Distillery (P), Vahni Distilleries, Kesarval Springs Distillers and Punjab Expo Breveries with additional 5 subsidiaries for TI's allied activities. The company exports its products to Western Africa, the Middle East, the Far East and Caribbean countries.