For Immediate Release

Performance Highlights for the First Quarter ending

30th June 2006

RADICO KHAITAN LIMITED

POSTS A NET PROFIT GROWTH AFTER TAX OF 20%

New Delhi, July 31, 2006: Radico Khaitan Limited India’s second largest liquor manufacturer today announced its unaudited first quarter results for the year 2006-07.

The company has registered an impressive growth in profits with net profit figures of Rs 13.28 crore as compared to Rs 11.06 crore for the same period last year.

Speaking on the occasion Mr. Lalit Khaitan, Chairman & Managing Director, Radico Khaitan Limited said, “We are very pleased with our 20% percent growth in profits. Looking ahead to the second quarter of fiscal 2006-07, we are upbeat about growth".

Highlights:

Radico Khaitan Ltd. has issued USD 40.0 million (Rs.184.0 crores) of Foreign Currency Convertible Bonds (FCCBs) with a green shoe option of USD 10.0 million which would be exercisable within 30 days from the issue date at the sole discretion of the Lead Manager. The proceeds of the issue shall be utilized to cater to the Company’s capital expenditure requirements and investments in joint ventures and subsidiaries abroad.

  • The Company has recently announced the issue of Cumulative Compulsorily Convertible Preference Shares of USD 20.0 million (Rs.92 crores), which is still subject to shareholder approval expected on August 10, 2006.

Radico Khaitan has entered into JVs in UK and Africa to own production lines overseas.

Old Admiral Brandy has been adjudged as the fastest growing brandy in the worldfor the second year running. (Source: Drinks International U.K)

  • Radico’s brands have won yet more medals at the Monde Selection 2006, Brussels (International Institute for Quality Selections). Brands: 8 PM Bermuda XXX Rum, Magic Moments Vodka, Contessa XXX Rum, Old Admiral VSOP Brandy, 8 PM Excellency Brandy, Old Admiral XXX Rum.
  • Radico’s brands have won medals at the International Spirits Challenge 2006 for Quality. Brands: Magic Moments Vodka, Whytehall Whisky and 8 PM Whisky

With brand launches in new markets the quarter saw the turnover go up from Rs 296.26 crore to Rs. 324.14crore a growth of 9.41%.

Speaking on the occasion Mr. Abhishek Khaitan, Managing Director, Radico Khaitan Limited said, “Our focus on building brands has paid rich dividends with the company registering spectacular growth.”

“We are now breaking into newer and sophisticated markets with liquor brands developed to appeal to a wider palate”, he added.

The EPS stands at Rs 5.52 compared to Rs 4.6 for corresponding results last quarter, which is a growth of 20%.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE THREE MONTHS ENDED 30TH JUNE 2006

(Rs. in crore)

Year ended 31.3.2006 (Audited) / 3 months
Ended 30.06.2006 / 3 months ended 30.06.2005 / Increase
In
Growth
%
Sales
(Including sales from arrangements with other distilleries / bottling units) / 1135.40 / 324.14 / 296.26 / 9.41%
Profit
before Depreciation, Interest and Tax / 87.34 / 28.50 / 19.73 / 44.45%
Profit after Tax / 45.17 / 13.28 / 11.06 / 20%
Profit available for appropriation / 40.23 / 12.57 / 9.83 / 28 
EPS (in Rs.) (Annualised)
(Before charging prior period deferred marketing expenses) / 4.68 / 5.52 / 4.6 / 20 

About Radico Khaitan Ltd:

Radico Khaitan Ltd has clocked a turnover of Rs 1135 crore in the year 2005-06 and has three millionaire club brands in its portfolio. 8 PM whisky has the unique distinction of having touched sales of one million cases in the first year of its launch. Contessa rum is one of the largest selling brands among defence forces. While Old Admiral brandy crossed the million case sales mark in the last financial year.

For further Information, please contact:

Anand / Siddhartha

9350266285 / 9350852560

Mutual PR