Tilaknagar Industries Prepays Rs 54 Crore Debt to Edelweiss Asset Reconstruction Company Limited

Mumbai, March 20, 2023: Tilaknagar Industries Ltd. (TI) (BSE: 507205) (NSE: TI), one of the leading Indian-Made Foreign Liquor (IMFL) manufacturers, today announced prepayment of principal along with accrued interest amounting to Rs 54.10 crore to Edelweiss Asset Reconstruction Company (EARC) as part of the debt restructuring exercise undertaken in February 2020.

Consequent to the above prepayment and as per the terms of the Master Restructuring Agreement, a debt waiver of Rs 126.63 crore has been given by EARC and the same shall be written back by the company.

Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “Our debt-reduction strategy is on-track. We have reduced the debt from a peak of Rs 1,199 crore as of Mar-19 to Rs 323 crore as of Dec-22. This prepayment of Rs 54 crore to EARC will further decrease our liability and pare finance costs. Our focus is to become near net debt-free in the next 12-18 months.”

In the quarter ended December 2022, Tilaknagar Industries delivered its highest-ever quarterly net revenue at Rs 303 crore. The company reported a 139.2 per cent year-on-year increase in profit after tax (excluding exceptional items) at Rs 24.55 crore as against a net profit of Rs 10.27 crore in the corresponding quarter a year ago.

In the month of December 2022, Tilaknagar Industries’ flagship brand Mansion House also reported highest-ever sales of 8.7 lakh cases in a single-month. The company’s overall sales volumes too reached almost 11 lakh cases in a month for the first time after a decade.

“Our brands have been performing well, in current and new markets. This, along with our debt reduction strategy, which has resulted in meaningful reduction in interest costs, has enabled us to generate significant cash-flows and deliver growth which is almost three-fold of the overall industry average”, Mr Dahanukar added.

Tilaknagar Industries, one of the largest manufacturers of premium brandy in India, had entered into a restructuring agreement with EARC dated February 06, 2020 wherein total loans of Rs. 523.32 crore were restructured at Rs 344.47 crore at an interest rate of 9 per cent.

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