Tilaknagar Industries allots equity shares to Edelweiss ARC, Q2 results declared

These will be issued at a price of Rs 24.36 per equity share (including premium of Rs 14.36 per equity share).

The proposal for allotment of shares on preferential basis to EARC was considered in respect of conversion of part of the debt owed to EARC by the company amounting to approximately Rs 33.86 crore.

Tilaknagar Industries, maker of the Mansion House brandy, had entered into a long restructuring agreement with EARC wherein total loans of Rs 523 crore have been restructured at Rs 344 crore at an interest rate of 9 per cent.

Separately, TI has also announced its results for the second quarter (Q2) of the financial year 2021.

The company reported a net loss of Rs 2.69 crore as against net loss of Rs 36.35 crore in the corresponding quarter of the previous financial year.

The company was able to cut down the loss considerably due to steep decline in finance costs.

For the half-year period, the finance cost stood at 33.78 crore, significantly lower than 92.73 crore for the same period last year due to one-time settlements (OTS) and debt restructuring implemented by the company.

The revenue of the company in Q2 stood at Rs 362.88 crore as against 185.73 crore in the first quarter of the fiscal year.

Despite the nation-wide lockdown, the company, on a half-yearly basis reported revenues of 548.62 crore compared to 739.80 crore for the same period last year.

Showing strong signs of recovery post lockdown, the quantitative sales of the company grew almost 150 per cent over the first quarter.

Q2 sales of the company stood at 14.96 lakh cases compared to 6.18 lakh cases in Q1 of the current fiscal year, indicating an emerging positive trend, according to the company.

The half-yearly sales, on the other hand, stood at 21.14 lakh cases compared to 32.01 lakh cases for the same period last year.

The company expects sales to receive a fillip following the rollback of the COVID tax by the Government of Andhra Pradesh vide an order on October 30, 2020, and the expected rollback of COVID tax by the Puducherry Government by the end of November.

Earlier, on account of imposition of the COVID tax, decline of 76 per cent and 87 per cent was reported in Andhra Pradesh and Puducherry, respectively.

Chairman and Managing Director Amit Dahanukar said, “The company’s sales have shown significant recovery post the subdued performance in the first quarter on account of the pandemic. The strong recovery clearly establishes the resilience of our business model and the strength of our brands.