Krbl Limited · NSE:KRBL
Krbl — Q1 FY2024 Earnings Presentation
37 slides from Krbl's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter for Q1 FY24 investor presentation
Ref: KRBL/SE/2023-24/38 10th August 2023 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 Bandra (E), Mumbai-400051 Dalal Street, Mumbai – 400 001 Symbol:
Slide 2: KRBL Ltd. Investor Presentation Q1 FY2024
KRBL Ltd. Investor Presentation - Q1 FY2024 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 3: Unmatched Strengths
Unmatched Strengths #1 #1 India’s largest exporter of KRBL has largest contact branded basmati rice with farming network coverage footprint in > 90 countries for rice India Gate is recognized as Strong financial position; #1 the world’s no. 1 basmati healthy internal accruals rice brand* and liquidi
Slide 4: Q1 FY24 Consolidated Performance Highlights
Q1 FY24 Consolidated Performance Highlights Total Income Gross Profit EBITDA PAT 1,441 415 278 195 930 (930) 4,884 3,278 Cash & Bank balance* Net Bank Borrowings Net worth Total Inventory All figures in Rs . crore and are based on consolidated financials 3 *Includes Other Bank balances and Investmen
Slide 5: Continuing Momentum in Revenue
Continuing Momentum in Revenue 15% 1,414 1,228 29 34 845 • Overall revenue increased by 15% over Q1 FY23. 709 Domestic and export revenue increased 19% & 11% respectively. 485 540 Q1 FY23 Q1 FY24 Exports Domestic Power All figures in Rs . crore and are based on consolidated financials 4 4
Slide 6: Profitability Metrics for Q1 FY24
Profitability Metrics for Q1 FY24 Gross Profit EBITDA 32.5% 28.8% 19.6% 19.3% • In Q1 FY24, basmati realization increased by 2% compared to Q1 FY23. 415 403 242 278 • Basmati input costs increased by 16% in the same period. Average basmati input cost – though higher on y-o-y basis - is relatively st
Slide 7: Superior Balance Sheet Matrix
Superior Balance Sheet Matrix Current Ratio (%) 9 7 • Total inventory as of 30th June, 2023, is at Rs 3,278 Cr, compared to Rs 2,461 Cr as of 30th June, 2022. • Overall liquidity position remains strong. Q1 FY 23 Q1 FY24 Working Capital Days Inventory Position (Rs. Crore) 2,264 1,908 211 222 182 193
Slide 8: Superior Balance Sheet Matrix
Superior Balance Sheet Matrix Net Bank Borrowing (Rs. Crore) Q1 FY 23 Q1 FY24 • Financial strength reflected in Strong Credit Rating: Long Term Rating: [ICRA] AA(Stable), upgraded on (936) (930) Feb 28, 2023. • Short Term Rating: [ICRA] A1+; CARE A1+ Interest Coverage Ratio • Internal accruals furth
Slide 9: Financial trends over the years
Financial trends over the years Revenue Gross Profit EBITDA* 5,363 4,499 1,670 1032 4,120 3,992 4,211 893 1,242 1,300 1,264 865 845 1,192 705 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PAT Net Worth Net Bank Borrowings 4693 4,070 701 3,693 558 559 3,128 1,381 503 2,72
Slide 10: Shareholder Distribution
Shareholder Distribution Dividend Buyback Dividend + Buyback 349 Cr 325 325 66 82 82 59 24 59 66 82 82 - - - - 24 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Dividend Buyback Dividend Buyback Total Dividend + Buyback in period FY19 to Q1 FY24 (including proposed divide
Slide 11: India Business
India Business 10 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 12: Continuing Market Leadership
Continuing Market Leadership 845 Revenue* in Rs. Crore for Q1 FY24 • Revenue driven by 14% growth in basmati volume and Trend in Domestic Business 5% growth in basmati realization over Q1 FY23. 19% Revenue growth Y-o-Y *Excludes Energy 11
Slide 13: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 14: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 15: India Gate penetration reaches new heights
STRATEGIC PILLAR 1 India Gate penetration reaches new heights On the back of impactful media campaigns and improved distribution PENETRATION (%)* GROWTH MAT ‘23 VS. MAR’23 ‘22 Huge headroom for UNBRANDED 29.2 -5.3% increasing Branded Basmati’s penetration BRANDED 19.5 2.4% KRBL consuming Households
Slide 16: 'Regionalization' in Focus
STRATEGIC PILLAR 1 ‘Regionalization’ in Focus South Markets get activated with regional campaigns, with the objective of Category Expansion SOUTH MARKETS – TN, KARNATAKA ‘Make Traditions Taste Great with India Gate Basmati Rice’ Film 1 - Good Choice! Film 2 - 10 out of 10! Coconut Rice Mint Rice
Slide 17: 'Regionalization' continues to build impact
STRATEGIC PILLAR 1 ‘Regionalization’ continues to build impact Phase II of HSM, WB and Maharashtra regional campaigns continues to drive Business objectives HINDI-SPEAKING MARKETS WEST BENGAL MAHARASHTRA ‘Basmati Rice Se No Compromise’ Home Minister Brand Power Preferred by 9 out of 10 women in Mah.
Slide 18: Impactful Media Collaborations & Brand Accolades
STRATEGIC PILLAR 1 Impactful Media Collaborations & Brand Accolades BUILDING REGIONAL NO. 1 TRUSTED BRAND INDIA GATE X ‘TARLA’ RELEVANCY OF INDIA BIG BOSS MALYALAM Biopic of India’s first home-chef, India Gate has been listed as Kerala Tarla Dalal, starring Huma Qureshi ‘No. 1 Trusted Brand of India
Slide 19: New FSSAI Basmati regulations to safeguard consumer interest
New FSSAI Basmati regulations to safeguard consumer interest STRATEGIC PILLAR 1 The new regulations Now any ‘Basmati’ With ~65% of the Hence, the consumer are intended to product cannot category being sold needs to be made protect the integrity have more than ‘loose’, there remains aware of the new
Slide 20: KRBL partners with FSSAI's 'Eat Right India' initiative
KRBL partners with FSSAI’s ‘Eat Right India’ initiative STRATEGIC PILLAR 1 Educating and Creating Awareness amongst consumers to make the right choice A P U B L I C I N T E R E S T I N I T I AT I V E CONCLAVES CONSUMER AWARENESS TRADE EDUCATION & SEMINARS CAMPAIGNS PROGRAMMES
Slide 21: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 22: Densifying distribution reach
STRATEGIC PILLAR 2 Densifying distribution reach Increasing Penetration through improved availability MARKET REPRESENTATION 28% increase in number of distributors Having market representation in ALL 50k+ Pop. Towns in North & West & ALL 1 Lac+ Pop Towns in East & South RETAIL OUTLET PRESENCE MARKET
Slide 23: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 24: Well on track to achieve 5% of Domestic Revenue through Regional Rice
Well on track to achieve 5% of Domestic Revenue through Regional Rice STRATEGIC PILLAR 3 REGIONAL RICE Positive response to Aged Regional Rice offerings from the house of India Gate – Q1 FY24 at 3.6% SURTI KOLAM, JEERA RICE & SONA MASOORI of Domestic Revenue* GT MT+ E-com Focus on Portfolio Strength
Slide 25: Digital-First Campaign for India Gate Sugar Watchers
Digital-First Campaign for India Gate Sugar Watchers Awareness campaign targeted to Diabetics, Pre-Diabetics and Health Conscious individuals STRATEGIC PILLAR 3 DIGITAL – FIRST CAMPAIGN ‘Give it a Go, its GI is low’ Top Metros HEALTH PORTFOLIO Successful launch for INDIA GATE SUGAR WATCHERS Office L
Slide 26: Positive Response for 'India Gate Sugar Watchers'
Positive Response from the consumers & Trade for ‘India Gate Sugar Watchers’ MODERN TRADE E-COMMERCE GENERAL TRADE TN & Karnataka
Slide 27: Maintaining leadership stance
BRAND LANDSCAPE Maintaining leadership stance ALL INDIA VOLUME SHARE (Q1 FY24)* Q1 FY24 Q1 FY23 Traditional Trade 32.4% +90 bps Modern Trade 41.9% +510 bps *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23 * Source: As per Nielsen’s Q1 FY24 RMS data
Slide 28: India Brand Portfolio
India Brand Portfolio 27
Slide 29: Export Business
Export Business *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 30: Leadership beyond India
Leadership beyond India 540 Revenue in Rs. Crore for Q1 FY2 4 • 11% y-o-y revenue growth in Q1 FY24, driven Trend in Export Business by basmati volume gains. 11% Revenue growth Y-o-Y 29
Slide 31: Positive trends for Rice export from India
Positive trends for Rice export from India Global markets offer exciting opportunities for KRBL to drive growth Basmati rice exports from • High yielding varieties of rice have led to surplus production in the country Production • Adoption of technology in farming have helped spur growth in produce
Slide 32: Overall international market position
Overall international market position •KRBL has leadership position in terms of market share in most GCC countries. •India Gate is #1 Indian Basmati rice brand in Qatar, UAE & Kuwait. •India Gate is the only premium Indian Rice brand in GCC. Middle East •Nur Jahan is the 2nd most popular brand in th
Slide 33: Export Strategy
Export Strategy Launch of economy variants / small packs to drive penetration New products Channel expansion Existing Markets New / Seeded Acquisition of markets “adjacent” basmati consumer Direct marketing Channel deepening & diversification Direct marketing - Penetration to locals with Arabic TVC
Slide 34: Exports Brand Portfolio
Exports Brand Portfolio 33
Slide 35: Expansion Update
Expansion Update Gujarat Plant Karnataka Plant Rice to rice plant. Paddy to rice and rice to rice plant. Commercial production commenced on June 12, 2023. Status: Civil work started in June 2023. Total rice processing capacity- 30 MT per Hour. Plant aimed at both export and domestic consumers.
Slide 36: Contact Us
Contact Us 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 bus
Slide 37: Thank You
Thank You *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23