My intention was not to point in that direction but to highlight the fact that they are not just part of Promoters group but rather owners of the company themselves, which is good. And as investor and fellow citizen, i think they have made their investors richer and brought pride through their products from all around the world.
[Disc: Invested with sizeable allocation in my pf]
OK. Just for the record; this is Siddharth Sharma, the driving force behind Piccadily and biggest individual shareholder (22.73%)
And here is Siddharth Sharma’s interview to Whisky Expert from Germany.
Why is the excise paid so low as compared to other players in the alcohol industry. Rs 185 cr worth of sale from distillery and just Rs 15 cr excise paid translating to 8.5 odd percent. Most companies have >45-50%. Anyone know the reason?
Probably because a good portion of the revenue is from exports
Exports was just Rs 38 cr in FY24 of the total turnover of Rs 552 cr for distillery segment. Excise duty paid during FY24 was just Rs 47 cr. Removing the export component, its still around the same 9% mark, the excise duty paid.
Trade receivable for 31.03.24 were 136.55 cr and now they are 135.21 means they have decreased by 1.34 crore.
But the cash flow statement mentions other receivables of 250 crores. What these other receivable could be?
I’m no expert, but my guess is that as the liquor gets more premium, the excise duty as a percentage of the bottle price becomes lower as per the data below (hope I’m referencing the right document/numbers).
For country liquor and cheaper priced alcohol (where most of the sales for established brands comes from), the excise duty is Rs. 82 per proof litre (where the bottles cost Rs. 180-200), while for brands like Indri it would fall in the Rs. 160 range per proof litre. Even though the proof litre as a percentage of the total quantity is slightly higher than single malt brands such as Indri, even if we assume the same percentage, they work out to 30-40% of the bottle price vs 5-6% for Indri (assuming its price is Rs. 3,100).
https://haryanatax.gov.in/HEX/DownloadPDF?formName=/ExcisePolicy2024_25/Excise_Policy_2024_25.pdf
Additionally, the CFO seems to have resigned. Any red flags here or is this just a coincidence?
Disclosure: Holding this stock, biased.
Yes, excise is a smaller portion for premium alcohol…Check out this cost card from a state government for premium vs non-premium alcohol. Compare Indri vs Piccadily’s Whistler…huge difference in % excise charged - Indri excise is ~10% whereas for cheaper whisky its a very high %.
Thanks for this insight! Do you have any idea what would be the Revenue/Cask for Indri?
From the above Costcard , you can find out the Ex-Distillery Price (EDP) for Indri which is Rs 21,000 for 9 litre case (12 bottles x 750ml).
State wise cost cards are different ballgame as EDP varies state to state and most of state asks for neighbouring state EDPs to approve their own cost cards . But companies find a way to circumvent state governments requirement by launching different variants .
This year PAIL will certainly gain serious volume gains as they have gained significant volumes in Canteen Stores Department and Central Armed police business .Response in defence business is superb and i expect defence business itself should add volumes of 15000 cases in current financial year at a healthy EDP . Coming quarters should be good considering marriage season and peak winter season setting in
This year YT Botted in Origin BIO Imported brand business has degrown by 1 percent while Indian single malts have grown by 15-20 percent and luxury single malts i.e, Amrut Rampur , Indri , Paul John. Gianchand have gained major volumes in Indian markets and growth looks promising smaller base and all companies producing single malts are facing issues in getting aged malts for production . PAIL is one of the largest malt spirits producer in North and they have stopped selling malt spirits to other distilleries/bottling plants and there is serious shortage of malt spirit .So PAIL is in a good position which will benefit them in coming years,
While CSD will offtake huge volume, wouldn’t it be at significant discount? We used to get liquor at substantial discount long back although off late I don’t know the pricing structure
Check the costcard above…everything other than EDP goes to state government pockets…in CSD you dont have to pay all those extra charges/taxes & thats why stuff is cheaper in CSD. For manufacturers, there is no difference in the price they get, its just that because stuff is cheaper, it sell more.
I have found another unexplained discrepancy in the Cash Flow statement. The balance sheet for q2fy25 shows an increase of 229 crore in cash and bank balances compared to balance sheet of q4fy24.
There is no corresponding entry in the Cash flow statement for this increase in the Cash.
Also, like ‘trade receivable’ if the company has any other “Other Receivable” same should be reflected in the ‘Current Assets’ section of the balance sheet which is missing.
These look for the sugar division mostly… you can see the significant bump in sugar division assets in Q2 vs Q1
Nowadays CSD is giving decent EDP. Cost in CSD is lower because of rebate in excise duties and vat exemptions and also lower trade margins. But volumes are higher and as BIO brands ( imported brand ) not being there . CSD is the largest market for all single malts.
