Krbl Limited · NSE:KRBL
Krbl — Q4 FY2020 Earnings Presentation
47 slides from Krbl's earnings presentation, Jun 10, 2020
Slide 1: Exchange filing cover letter
E:KRBL/BIBHU/STK_EX_2021/17 09 June 2020 The General Manager National Stock Exchange of India Limited Department of Corporate Services "Exchange Plaza", C-1, Block-G BSE Limited Bandra-Kurla Complex / Floor 25, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001 Sandra (E), Mumbai-400051 Scrip
Slide 2: Investor Presentation Q4 & FY20
o KRBLiN aed WORLD'S LARGEST RICE MILLERS & BASMATI RICE EXPORTERS INVESTOR PRESENTATION Q4 & FY20 , A QD fa leg!) ao. AES Taj Mahal BASMAT| INDIAN FARM NurJahane Wisam BASMATI RICE — BASMATI RICE earesnliaise
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: Table of Contents
KRBL Limited – At a Glance 4 Q4 & FY20 Performance Highlights 13 Q4 & FY20 Business Update 22 Table of Contents Introduction to KRBL Limited 30 Institutional Relationships 38 Sustained Promotional Initiatives 42 About KRBL Limited 45 3
Slide 5: KRBL Limited – At a Glance
KRBL Limited – At a Glance
Slide 6: KRBL - At a Glance
KRBL -At a Glance Multi-brand presence in Indian & International markets. Flagship brand ‘India Gate’ commands Our History since Listing in 1995 … premium in both international and Indian markets Total turnover for FY20 includes 90% from Basmati rice and balance 10% from Non basmati rice, Revenue fr
Slide 7: Market Leader, high growth FMCG Company – At a Glance
Market Leader, high growth FMCG Company – At a Glance INDIA GATE – The flagship brand #1 #1 #1 130 ~ 15% 67% Largest World’s Largest well years of rich Premium that exporter of largest rice Contribution of established industry KRBL’s brands India Gate Branded milling plant selling brand experience f
Slide 8: Attractive Financial Metrics
Market Leader, high growth FMCG Company – At a Glance Attractive Financial Metrics Dividend paid by KRBL Limited since FY10 The Company has a duly approved dividend distribution policy in place and it endeavors to maintain a dividend payout ratio* i.e. 70.00 280% 300% dividend/net profit for the yea
Slide 9: KRBL's Domestic & International Reach
KRBL’s Domestic & International Reach KRBL exports to 82 countries across 6 continents Diversifying distribution setup with global network Powerful International Distribution— Tie-ups with leading retail chains across the Globe 500+ Exclusive Dealer and Distributors Retailers E-Commerce Players Powe
Slide 10: KRBL's best in class operational facilities
KRBL’s best in class operational facilities Capacity Capacity Location Function (MT/hr) (MT/hr) Location Function Sonipat, Grading, The plant in Gautam budh Nagar, UP The plant in Sonipat, Haryana is Alipur, Grading, Sorting Haryana Sorting and 20 30 is spread across 125 acre spread across 21 acre D
Slide 11: World-Class Operational Set-Up
World-Class Operational Set-Up KRBL has best in class facilities with global presence in Basmati rice. It has 6 million sq. ft. of warehousing spread over 346 acre, with a capacity to store 1 million MT of rice and paddy 10 *Refers to area covered by plant
Slide 12: Strong track record of shareholder value creation
Strong track record of shareholder value creation (in INR Cr.) Robust growth and profitability improvement creating stakeholder value REVENUE EVOLUTION EBITDA EVOLUTION* 819 865 894 4,120 4,499 655 3,113 3,348 3,146 3,246 491 542 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 PBT PAT 73
Slide 13: Strong track record of shareholder value creation
Strong track record of shareholder value creation (in INR Cr.) Robust growth and profitability improvement creating stakeholder value NET WORTH ROCE (%) 3,119 21 23 2,717 19 20 19 2,279 17 1,872 1,259 1,460 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 EPS (INR RS.) DIVIDEND PAYOUT (RS
Slide 14: Q4 & FY20 Performance Highlights
Q4 & FY20 Performance Highlights
Slide 15: Management Commentary
Management Commentary Commenting on the performance for Q4 & FY20, Mr. Anil Kumar Mittal – Chairman and Managing Director, KRBL Limited said, “Our performance during the quarter underlines the strength of our brands. Our focus during the year had been to further magnify visibility and worldwide reac
Slide 16: Q4 FY20 Key Performance Highlights – Standalone Financials
Q4 FY20 Key Performance Highlights – Standalone Financials (in INR Cr.) REVENUE FROM OPERATIONS EBITDA PBT 1,196 232 238 196 201 1,062 3% 3% 11% Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19 Q4FY20 PAT EPS (IN INR) INVENTORY POSITION BORROWINGS POSITION 150 3,129 2,852 137 6.38 5.81 9% 10% 10% 1,428 65% 496 Q4
Slide 17: FY20 Key Performance Highlights – Standalone Financials
FY20 Key Performance Highlights – Standalone Financials (in INR Cr) REVENUE FROM OPERATIONS EBITDA PBT 865 894 4,120 4,499 733 759 9% 3% 4% FY19 FY20 FY19 FY20 FY19 FY20 PAT EPS (IN INR) NET WORTH 559 23.76 503 21.38 3,119 2,717 11% 11% 15% FY19 FY20 FY19 FY20 FY19 FY20 16
Slide 18: Director's Remuneration
Director’s Remuneration Directors remuneration as a % of PBT History of three generations perfecting the Basmati grain 1.20% 1.10% Committed to enhancing capacities and introducing latest milling techniques to the 1.00% 0.82% 0.84% Basmati rice industry. 0.80% 0.67% 0.56% 0.54% 0.56% 0.60% 0.40% Lon
Slide 19: Enthusiastic & Dynamic Workforce
Enthusiastic & Dynamic Workforce Revenue/Employee (INR Cr.) 2.01 1.43 FY14 FY20 Employee Cost (% of revenue) 2.27% 2.38% 1.89% 1.80% 1.83% 1.57% 1.72% FY14 FY15 FY16 FY17 FY18 FY19 FY20 • Revenue per employee continues to be in an increasing trend • Employee cost as a percentage of revenue remains l
Slide 20: Highest customer penetration in media and advertising
Highest customer penetration in media and advertising No. 1 55% Maximum Choice of 100 Mn + customers Share of Media Digital Views across the Voice Impact world India Gate Basmati More than 55000 Repeatedly emerged The most active and Rice is repeatedly spots on TV, 25000 as the top brand of versatil
Slide 21: Impact of CoVID-19 pandemic and initiatives undertaken
Impact of CoVID-19 pandemic and initiatives undertaken • As a responsible packaged food Company, KRBL undertook all precautions/ steps against the spread of COVID-19, in compliance with Government directives • Being in essential services category, the Company was able to run all its plants at stable
Slide 22: CSR activity during CoVID-19 pandemic- #UmeedHainHum
CSR activity during CoVID-19 pandemic- #UmeedHainHum 20 Mn+ MEALS Distributed in Feed India campaign with Chef Vikas Khanna 5 lakh+ Migrant Labourers Were fed during 95000 Kg UmeedHainHum campaign Rice Distributed To NGOs across the country www.indiagatefoods.com/umeed 21
Slide 23: Q4 & FY20 Business Update
Q4 & FY20 Business Update
Slide 24: Q4 FY20 Business Update
Q4 FY20 Business Update Q4FY20 Q4FY19 % change Rice Sales* Qty Rate Value Qty Rate Value Qty Price Value (in MTS) (in Rs./Mt) (in Rs. Cr) (in MTS) (in Rs./Mt) (in Rs. Cr) (in MTS) Realization Indian Market 94,021 53,623 503 88,050 59,197 521 6.78% -9.42% -3.45% Sales Export Market 56,477 87,153 492
Slide 25: FY20 Business Update
FY20 Business Update FY20 FY19 % change Rice Sales* Qty Rate Value Qty Rate Value Qty Price Value (in MTS) (in Rs./Mt) (in Rs. Cr) (in MTS) (in Rs./Mt) (in Rs. Cr) (in MTS) Realization Indian Market 371,409 56,303 2,094 352,829 55,244 1,949 5.27% 1.92% 7.44% Sales Export Market 248,232 83,847 2,081
Slide 26: Strong Balance Sheet
Strong Balance Sheet ROCE (%) Net Debt to Equity Ratio Interest Coverage Ratio FY20 22.72 FY20 0.14 FY20 13.15 FY19 19.32 FY19 0.52 FY19 11.85 Book Value per Share (Rs.) Current Ratio Net Debt to EBITDA FY20 132 FY20 3.01 FY20 0.50 FY19 115 FY19 2.07 FY19 1.65 All ratios are updated based on Standal
Slide 27: Enhancing financial stability
Enhancing financial stability *Net Debt excludes Financial Lease Liabilities *As on Sep’18, KRBL is at zero debt with cash surplus. (in INR Cr.) Net Debt Inventory 3,129 2,462 2,852 1,690 1,858 1,742 2,019 Net Debt came down 1,287 1,417 1,416 1,042 1,301 1,325 from Rs. 1,424 Cr in 545 FY19 to Rs. 44
Slide 28: Sustained improvement in profitability despite unique paddy dynamics
Sustained improvement in profitability despite unique paddy dynamics Average Paddy Price (P/MT '000) PBT (INR cr) 733 759 682 539 PBT increased 425 from Rs. 733 Cr in FY19 to Rs. 759 Cr 337 353 in FY20 36 32 34 25 25 29 22 FY14 FY15 FY16 FY17 FY18 FY19 FY20 • Inspite of variation in paddy prices, KR
Slide 29: Increasing investments in the Rice business
Increasing investments in the Rice business (in INR Cr.) Net Worth Investment in Power Business Investment in Rice Business 2,550 2,105 1,635 1,076 1,199 874 722 673 644 613 569 385 509 298 3,119 2,717 2,279 1,586 1,872 1,020 1,259 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 • There has been a
Slide 30: Peer Comparison
Peer Comparison 3 year CAGR for Revenues (%) Debt to Equity 3 year CAGR Net Profit (%) 72 0.98 22% 18% 6 55 47 14% 13% 13% 4 4 38 34 3 8% 8% 22 5% 4% 0.16 3% 0.11 0.07 0.00 LT Foods LT Foods LT Foods KRBL KRBL KRBL Marico Marico HUL HUL Marico HUL Dabur Dabur Dabur 29
Slide 31: Introduction to KRBL Limited
Introduction to KRBL Limited
Slide 32: A 130-year-old legacy – Evolution and key milestones
A 130-year-old legacy – Evolution and key milestones 2019 1998 Trade mark registration of its flagship brand ‘INDIA GATE’ registered on 12 August 2019 with a user Brand time line entered the Indian Market with claim since 01 January 1979 India Gate and Doon A moment of Pride-KRBL getting featured on
Slide 33: Leading Basmati brands across categories
Leading Basmati brands across categories International Domestic 32
Slide 34: Key brand line ups in Healthy Food Segment
Key brand line ups in Healthy Food Segment Domestic Health Brands International Health Brands 33
Slide 35: Aim to grow revenues to ~INR 8,000 cr in 4-5 years
Aim to grow revenues to ~INR 8,000 cr in 4-5 years on compelling growth drivers… Conversion from Basmati Rice- KRBL’s Strong Corporate Consistently driving loose to branded Attractive industry unique exports Governance basmati dynamics positioning Developing Increasing premium consumption non-basmat
Slide 36: 130-year old legacy, led by a committed management
130-year old legacy, led by a committed management Anil Kumar Mittal Arun Kumar Gupta Anoop Kumar Gupta Priyanka Mittal Rakesh Mehrotra Chairman and Managing Director Joint Managing Director Joint Managing Director Whole Time Director Chief Financial Officer Visionary of the company, Expert on Basma
Slide 37: Next Generation of Leaders
130-year old legacy, led by a committed management Next Generation of Leaders Ashish Mittal Kunal Gupta Akshay Gupta Ayush Gupta •Mr. Ashish Mittal is having immense •Mr. Kunal Gupta is having a passion for •Mr. Akshay Gupta has worked in the Rice •Mr. Ayush Gupta has invested 8 fruitful knowledge a
Slide 38: Experienced Independent Board Members
Experienced Independent Board Members •Mr. Ahuja is a B.Sc. Engg. (Mech.) •Mr. Arora persued his education in •Mr. Dua graduated from Delhi •Mr. Devendra has vast experience Hons from Punjab Engineering UK and did his M. Tech in University and has seventeen years of over 35 years in the area of Coll
Slide 39: Institutional Relationships
Institutional Relationships
Slide 40: Shareholding Pattern as of March 31st, 2020
Shareholding Pattern as of March 31st, 2020 59.5%* 0.5% Promoter & Promoter Bank, FI, Group Insurance & MF 6.4% 12.7% 20.9% Foreign Portfolio NRI/OCB/Foreign Public/Others Investor National/QFI * Promoters have increased their holdings by 1.1% from 58.81% as on March 31 st 2019 to 59.46% as on March
Slide 41: Top Fund Houses' Holding as on March 31, 2020
Top Fund Houses’ Holding as on March 31, 2020 Top fund houses holding more than 1 Lakh Shares in KRBL Limited as on 31 March 2020 Holding as on 31st Name % Shareholding March 2020 Kotak Mahindra (International) Limited 5,464,635 2.32% Vanguard Total International Stock Index Fund 1,574,363 0.67% Van
Slide 42: Top Banking Relationships
Top Banking Relationships State Bank of India HDFC Bank Limited DBS Bank India Ltd. Cooperatieve Rabo ICICI Bank Limited Kotak Bank Ltd. Bank U.A. MUFG Bank Ltd Corporation Bank IndusInd Bank Ltd. Karnataka Bank Limited 41
Slide 43: Sustained Promotional Initiatives
Sustained Promotional Initiatives
Slide 44: Round the Year Presence on Media Channels
Round the Year Presence on Media Channels National Campaigns EID DIWALI FESTIVE FESTIVE -SOUTH BRAND Big Ticket Sponsorships 43
Slide 45: The Biggest Digital Campaigns of the Year in India – India Gate Basmati Rice
The Biggest Digital Campaigns of the Year in India – India Gate Basmati Rice # Video Views Engagement Campaigns Fans 100Mn+ 35 Lakh+ 5 Massive Digital Campaigns Best trending hashtags # of the 2,10,000+ on Facebook year were from India Gate. #TyohaarKiTayyari #EverySacrificeMatters #YehEidBanaoClass
Slide 46: About KRBL
About KRBL KRBL Limited (NSE: KRBL, BSE: 530813) is the world’s largest rice miller and Basmati rice exporter. It is India's first integrated rice For further information, please contact: company with an extensive supply chain with a 130-year history and presence since 1889. With manufacturing capac
Slide 47: Thank You
Thank You