Jagatjit Industries achieves remarkable turnaround, reports profitable FY 2022-23 results

Jagatjit Industries achieves remarkable turnaround, reports profitable FY 2022-23 results
Photo- Jagatjit Industries

Jagatjit Industries, a leading manufacturer of Indian Made Foreign Liquor (IMFL) and Country Liquor in India, announced its FY 2022-23 annual results, which mark a solid period of growth and recovery.

Over the past three years, the company has grown its gross revenues to INR 625 crore, from INR 273 crore, a noteworthy 2.29 fold increase from FY 2019-20. In FY 2022-23, revenues soared by 24 percent with an increase in net sales by 14 percent. Furthermore, the company moved from a loss of INR (51.65) crore in FY 2019-20 to a profit of INR 10.62 crore in FY 2022-23.

The EBITDA for March 2023 reached an impressive INR 49.13 crore. For the first time in the past decade, Jagatjit Industries has reported a double-digit figure in Profit Before Taxes, signifying its successful turnaround strategy. 

This strategy involved implementing significant changes, team building and enhancing management, implementing operational efficiency, identifying and leveraging new market opportunities, improving product offerings, shifting to a new business model of short-term franchise agreements in key markets, and advancements in technology and infrastructure at the manufacturing locations. The profitability turnaround has boosted investor confidence, strengthened its market position, and set the foundation for sustainable growth and success in the future.

Looking ahead to FY 2023-24, Jagatjit Industries is set to embark on several key strategic initiatives. Central to this is the goal to make the grain-based ethanol manufacturing plant operational by June 2024, a step that is anticipated to significantly contribute to the company's revenues and profitability.

The company will also undertake expansion into new markets in Uttar Pradesh, Kerala, and the Canteen Stores Department. This development aims to widen its consumer base and further fuel its growth to the 22 states. It will also continue to deepen its presence in existing markets of Punjab, Andhra Pradesh, Telangana, Assam to name a few. JIL will also further grow the export markets from 13 to 15 countries and set foot in Nigeria and Russia by making its products available through export.

“Through careful planning, operational efficiency, and a commitment to technology and innovation, we have achieved remarkable financial milestones. This marks the first time in a decade that Jagatjit Industries reports a double-digit figure in Profit Before Taxes, signifying the success of our turnaround strategy,” said Roshini Sanah Jaiswal, promoter & chief restructuring officer of Jagatjit Industries.

“Our success is a testament to the dedication and resilience of our team, who have worked tirelessly to implement key changes and unlock new opportunities. By streamlining operations, meticulous resource planning, enhancing our product offerings, forging strategic alliances, and improving financial management, we have regained investor confidence, strengthened our market position, and set a solid foundation for future growth,” she further added.

Jagatjit Industries' shares closed at an impressive INR 99.02 on May 30, 2023, on the Bombay Stock Exchange (BSE). Over the past six months, investors have enjoyed a remarkable return of 30 percent from their investments in the company. Furthermore, the company's share performance over the last twelve months has been truly remarkable, with a substantial return of 66 percent.

The significant upward trajectory of the share price showcases the market's recognition of the company's strong performance, effective management, and ability to capitalize on market opportunities. It positions the company favorably for continued success, attracting investors, strengthening relationships, and unlocking new avenues for growth and innovation.

“We extend our heartfelt gratitude to our stakeholders - clients, employees, shareholders, partners, and communities, whose unwavering support has been instrumental in our journey. Together, we will continue to create enduring value, foster resilience, and achieve sustainable growth in the ever-evolving industry we operate in. The company is poised for a future that is both exciting and prosperous," said Roshini Sanah Jaiswal.

Financial Highlights
Fourth quarter fiscal 2022

  • Revenues for the fourth quarter of fiscal 2022 were INR 150 crore, compared with INR 128 crore for the fourth quarter of fiscal 2022, an increase of 17.18 percent

  • Jagatjit Industries Limited demonstrated a significant growth rate of 14 percent in consolidated net sales for the fourth quarter of fiscal 2022, ending in March 2023. The company's impressive achievement with net sales reaching INR 150.15 crore compared to INR 128.35 crore in the same period last year, highlights its successful adaptation to evolving market dynamics and its ability to effectively meet customer demands.

  • The quarterly net profit for the fourth quarter of fiscal 2022- 23 stood at INR 9.56 crore.

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