Liquor Company, Radico Khaitan has announced its quarterly results and has been able to post healthy profits during the period.

This has happened since it saw good sales figures and rise in profit margins of its premium brands.

Profit for the June quarter was at Rs. 160.5 million which is higher than last year for the same period when it was at Rs. 107 million. Net sales were at Rs. 3.26 billion.

Talking about the same, Managing Director, Abhishek Khaitan said to Reuters, "Premiumisation is the main reason behind our results. Our premium brands which are high value products have done very well."

Radico is into the business of Indian made foreign liquor (IFML) and has many premium, semi-premium and super premium brands. During the above mentioned period, sales went up by 17 per cent.

This could have been better had the prices of soft raw materials had not risen the way they did because of inflation.

Most important in this were the molasses. Since the sugarcane production decreased last year so was the production of molasses, which led to shooting up of prices.