Krbl Limited · NSE:KRBL
Krbl — Q4 FY2019 Earnings Presentation
35 slides from Krbl's earnings presentation, May 16, 2019
Slide 1: Cover letter to stock exchanges on Q4 and FY19 results
E:KRBL/BIBHU/STK_EX_1920/14 May 16, 2019 KRBLfimfil The General Manager National Stock Exchange of lndia Limited Department of Corporate Services “Exchange Plaza”, C-1, Block-G BSE Limited Bandra-Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street \/ Mumbai-400051 Mumbai 400 00
Slide 2: Investor Presentation Q4 and FY19
Investor Presentation Q4 and FY19 1
Slide 3: Safe Harbor
Safe Harbor This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to KRBL Limited and its affiliated companies (“KRBL”) future business devel
Slide 4: Q4FY19 & FY19 Performance
Q4FY19 & FY19 Performance 3 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 5: Q4FY19 & FY19 – Standalone Financials (1/2)
Q4FY19 & FY19 – Standalone Financials (1/2) Q4 - YoY FY – YoY • Q4FY19 revenue from operations at Rs. 1,196 cr. as compared to Rs. 876 cr. in 1,196 4,120 Q4FY18; a growth of 36.6% Y-o-Y. 3,246 876 Revenue from Operations • Highest ever FY19 revenue from operations (Rs. In Crore) at Rs. 4,120 cr. as
Slide 6: Q4FY19 & FY19 - Standalone Financials (2/2)
Q4FY19 & FY19 - Standalone Financials (2/2) Q4 - YoY FY – YoY • Q4FY19 PAT at Rs. 137 cr. (Margins at 11.4%) as compared to Rs. 96 cr. (Margins 137 503 at 10.9%) in Q4FY18; a growth of 42.4% 462 96 PAT • Highest ever FY19 PAT at Rs. 503 cr (Rs. In Crore) (Margins at 12.2%) as compared to Rs. 462 cr.
Slide 7: FY19 vs. FY18 – Business update – Standalone Financials
FY19 vs. FY18 – Business update – Standalone Financials 4% 3% FY18 FY19 • Contribution of Export Business increased from 40% to 45%. Segment ₹ ₹ Revenue 40% 3246 45% 4120 52% cr 56% cr • Indian Market Rice Sales increased by 13% in quantity terms, and 17% in value terms during the quarter, as compar
Slide 8: Strong financial indicators…
Strong financial indicators… Total Debt to Equity Ratio Interest Coverage Ratio 0.55 0.52 12.22 10.68 Mar'18 Mar'19 FY 18 FY 19 Current Ratio Quick Ratio* 2.03 2.06 2.05 2.07 Mar'18 Mar'19 Mar'18 Mar'19 #Based on consolidated financials *Quick Ratio is calculated after including inventory since inve
Slide 9: Q4FY19 - Key Marketing Initiatives
Q4FY19 - Key Marketing Initiatives 8 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 10: 360-degree campaign
360-degree campaign Special days deserve something special on your plate. Hence on the festive occasion of Diwali, KRBL launched a 360 degree campaign to promote the flagship product from its portfolio – INDIA GATE CLASSIC Campaign Reach TV Radio OOH Digital Retail Print PDSM Q4 and FY19 Investor Pr
Slide 11: Campaign Presence & Impact
Campaign Presence & Impact Campaign Presence Campaign Impact 609 OOH units in 22 3,860 spots across 51 47% increase in total Cities across India channels Retail Penetration of IG Classic 15,000+ Retail outlets 16,000+ spots Monthly Billing increased covered by POSM across 20 cities by 125% in 6,000
Slide 12: Impact Associations
Impact Associations 11 Q4 and FY19 Investor Presentation
Slide 13: Company Overview
Company Overview 12 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 14: A leading branded FMCG company. India's largest producer and exporter of Basmati rice
A leading branded FMCG company. India's largest producer and exporter of Basmati rice • Established in 1889, KRBL is India's first integrated rice company. FY19 Financials (Standalone Financials) • Present in the entire value chain from seed development and multiplication, contact farming, productio
Slide 15: A 130-year-old legacy – Evolution and key milestones
A 130-year-old legacy – Evolution and key milestones 2016 Set up the fourth facility at Barota 2010 Received the Halal Stock split. Face certification 1995 2001 value divided Listed at BSE, Delhi from Rs. 10 to Received Stock Exchange & Rs. 1 per share ISO-9002 for the 2006 Ahmedabad Gautam Budh GDR
Slide 16: Key investment highlights
Key investment highlights 1 Basmati Rice- Attractive industry dynamics Undisputed Opportunities in leader with new growth dominant brand segments positioning 2 6 Strong Robust financial manufacturing performance and distribution With a fully strength 3 integrated 5 business model 4 Q4 and FY19 Inves
Slide 17: Basmati Rice – Attractive industry dynamics
1 Basmati Rice – Attractive industry dynamics … Coupled with Indian consumption Basmati Rice – A niche opportunity Growth in India’s Basmati production... drivers • Basmati producing regions are limited. Exclusively • Introduction of higher yielding and shorter duration Growing urbanisation grown in
Slide 18: KRBL is the undisputed leader of Indian Rice Industry
2 KRBL is the undisputed leader of Indian Rice Industry INDIA GATE – The flagship brand Top 5 brands (by value) • Largest selling brand of Market share (%) in India Market share (%) in Metro Market Market share (%) in Town class I India. 35 36 24 • Well-established in both the 40 Indian market as we
Slide 19: The #1 brand in several lucrative International markets
2 The #1 brand in several lucrative International markets Exports to 81 countries • India Gate has 76% market share in India Gate and Bab Al Hind the ‘premium’ category (on RSP Leadership in Kuwait with India Gate & Nurjahan #1 & #2 19.7% market share. Indian Basmati brand in Qatar with 27% basis) i
Slide 20: A multi-brand strategy addressing all segments and markets
2 A multi-brand strategy addressing all segments and markets Brands catering to bottom of pyramid consumers to super premium consumers Q4 and FY19 Investor Presentation 19
Slide 21: With continued focus on branding and consumer engagement
2 With continued focus on branding and consumer engagement Focussed on small, sweet habits and customs of India Big Boss • Brand Spends- Rice Segment. India Gate brand has the highest Advertising spends in the segment. • India Gate brand is on top of the category list with a 31% share of voice on TV
Slide 22: Strong manufacturing capabilities, early investments for capacity
3 Strong manufacturing capabilities, early investments for capacity Manufacturing and Warehousing capability • Manufacturing and procurement facilities in close proximity to the Basmati growing regions. • Production capacity at 195 tonne per hour (TPH), the largest in the industry. • Sufficient capa
Slide 23: Distribution network strength - Pan-India and International
3 Distribution network strength - Pan-India and International Pan-India retail and wholesale network Distribution tie-ups with large retailers globally Tie-ups with major online players • In its modern trade channel, enhanced presence • Rising opportunity from the online distribution to 7,530 stores
Slide 24: Fully integrated operations; present in entire value chain
4 Fully integrated operations; present in entire value chain Integrated value chain - Presence across the entire value chain enables controlling costs and quality Seed development Value-added products • A leading rice player to 1. • Manufacturing value-added manufacture Basmati seeds. Procurement pr
Slide 25: Research-based approach and quality control focus
4 Research-based approach and quality control focus Seed Development Strong R&D focus to improve quality • Entered into Seed Development & Multiplication • Extensive research on various parameters such as (QSDIP program). chemistry, quality and ageing of Basmati rice to • Dedicated team of agricultu
Slide 26: Deep-rooted relationships with farmers, nurtured over decades
4 Deep-rooted relationships with farmers, nurtured over decades • A systematic process developed by KRBL to reach out to farmers at the field level and assist them from the time of procuring agri-inputs/seeds till the time the product is ready to be sold in the markets. Contact Farming • Hand-holdin
Slide 27: Value-add from by-products of milling plants
4 Value-add from by-products of milling plants Main by-products generated are Rice Bran and Paddy Husk. Integrating best sustainable practices, contributing to revenue • Rice Husk is an excellent source of heat energy. Sold as a fuel to produce steam and electric power. • Paddy husk is used in the m
Slide 28: Robust financial performance, fundamentals comparable to FMCG standards
5 Robust financial performance, fundamentals comparable to FMCG standards Revenue 1&2 (in ₹ Crores) and Capacity Utilization 3 (%) EBITDA1 (in ₹ Crores) and EBITDA Margin (%) 5,000 100% 1,000 40% 4,120 865 4,000 80% 792 3,363 3,247 800 30% 3,160 3,148 2,910 3,000 60% 654 56.0% 600 442 532 24.3% 20%
Slide 29: Continuous deleveraging, improving profitability
5 Continuous deleveraging, improving profitability Total Debt to Equity Ratio Interest Coverage Ratio 1.50 16.00 1.12 12.22 12.00 10.68 1.00 9.64 0.80 7.97 8.00 0.58 0.55 0.55 0.52 5.63 5.59 0.50 4.00 0.00 0.00 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Current Ratio 2.50 2.06 2.05
Slide 30: Reduction in cash conversation cycle despite heavy procurement
5 Reduction in cash conversation cycle despite heavy procurement (in ₹ Crores) Inventory Net Debt 3,129 • Net debt starts rising with the 2,462 commencement of procurement of paddy in H2 every year and becomes insignificantly low by 1,289 1,417 1,424 end of H1 of the next financial 1,176 year. This
Slide 31: Capitalising on opportunities in new growth segments
6 Capitalising on opportunities in new growth segments • Constantly innovating on our offerings to the ever changing consumer preferences. • Moving up the brand value chain. Launch of new products in ‘Super Premium’, ‘Heath food’ and ‘Specialised’ categories. • Evolving into a maker of ‘healthy’ and
Slide 32: Awards and accolades
Awards and accolades 2018 2017 2016 2015 2015 The Agriculture Golden Trophy by APEDA Guinness World Record World Greatest Brand Mr. Anil Kumar Mittal was Leadership Award for for outstanding export for display of the heaviest 2015, ASI, & GCC, awarded the prestigious dominant position in agro perfor
Slide 33: Highly experienced leadership team recognised by industry
Highly experienced leadership team recognised by industry Anil Kumar Mittal • Visionary of the company, provides strategic direction to all aspects of the business Chairman and • Over 44 years of experience in the rice industry Managing Director • Founder and former president of All India Rice Expor
Slide 34: Shareholding Pattern
Shareholding Pattern 15.14% Promoters Bank, FI, Insurance & Mutual Fund Foreign Portfolio 18.3% Investor NRI/OCB/ Foreign National/ QFI 58.8% Public/ Other 6.8% 1.0% As of 31st March, 2019 Q4 and FY19 Investor Presentation 33
Slide 35: Investor Contact
KRBL Limited Regd. Office : 5190, Lahori Gate, Delhi - 110 006, INDIA. Tel. : +91-11-23968328 Fax : +91-11-23968327 CIN No.: L01111DL1993PLC052845 www.krblrice.com Investor Contact: Rakesh Mehrotra Chief Financial Officer Tel: +91‐120‐ 4060 300 E‐mail: investor@krblindia.com https://www.youtube.com/