For 3QFY2016, Radico Khaitan (RKL) outperformed our estimates on the earnings front although the top-line came in flat yoy. On the operating front, the company reported margin expansion, primarily on account of lower raw material and selling & distribution expenses. Further, on the bottom-line front, the company reported a healthy growth due to strong operating performance and lower interest cost. Regular & others products segment de-grew which restricted overall top-line growth but healthy volume growth in Prestige & above products segment: For the quarter, RKLs top-line grew flat yoy to ~Rs401cr (our estimate was of ~ Rs432cr), mainly due to the companys shift in focus towards prestige and above products over higher volume mass market products. During the quarter, Prestige & above brands volume grew ~10.7% yoy. Prestige and above brands contribution to total Indian made foreign liquor (IMFL) volumes increased from 21.4% in 3QFY2015 to 24.6% in 3QFY2016. However, de-growth in Regular & others products segment which contribute more than 75% of total sales volume, restricted the overall top-line growth of the company. The company is continuously focusing on the high-margin Premium products segment to increase revenue. PAT grew ~19% yoy: The reported net profit for the quarter grew...