Grm Overseas Ltd. · NSE:GRMOVER
Grm Overseas — FY2023 Earnings Presentation
35 slides from Grm Overseas's earnings presentation, May 25, 2023
Slide 1: Exchange intimation letter on investor presentation
Date: 25.05.2023 To, The General Manager The Manager BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Listing Department Exchange Plaza Phiroze Jeejeebhoy Towers 5th Floor, Plot No. C-1, Block-G Dalal Street Bandra-Kurla Complex, Bandra(E) Mumbai- 400 001 Mumbai
Slide 2: GRM Overseas Limited Investor Presentation May 2023
Creating India’s Largest & Trusted Standalone Consumer Staple Brand GRM Overseas Limited Investor Presentation | May 2023 BSE:531449 | CIN: L74899DL1995PLC064007 | www.grmrice.com © 2023 – All Rights Reserved | www.grmrice.com
Slide 3: Discussion Summary
Discussion Summary Quarterly Financial Highlights Annual Financial Highlights Company Overview Growth Strategies Opportunity Landscape Annexures
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights 3
Slide 5: Q4 & FY23 – Key Performance Indicators
Q4 & FY23 – Key Performance Indicators Total Revenue (Rs Cr) EBITDA (Rs Cr) EBITDA Margins (%) PAT (Rs Cr) PAT Margins (%) 90 8% 85 140 12% 11.1% 1,392 130 80 7% 120 10% 7.2% 70 1,171 111 6% 100 8% 60 63 5% 6.7% 8.0% 80 50 4.0% 5.8% 6% 4.5% 4% 40 60 2.6% 3% 30 4% 438 377 40 2% 20 2% 20 25 25 10 15 1
Slide 6: Quarterly Trends – Key Performance Indicators
Quarterly Trends – Key Performance Indicators Total Revenue (Rs Cr) EBITDA (Rs Cr) EBITDA Margins (%) PAT (Rs Cr) PAT Margins (%) 25 7% 35 12% 438 9.7% 33 5.7% 6% 31 30 10% 20 5.4% 9.0% 5.1% 377 365 25 8.1% 18 20 5% 319 25 25 8% 6.7% 15 4.0% 270 20 22 4% 5.8% 15 14 6% 3% 15 10 11 4% 2.6% 10 2% 5 2%
Slide 7: Segmental Revenue - Mix
Segmental Revenue - Mix Export (Rs Cr) Foodkraft (Rs Cr) Export (Rs Cr) Foodkraft (Rs Cr) 1,063 353 911 290 265 234 212 353 121 290 264 189 57 63 38 41 57 63 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 © 2023 – All Rights Reserved | www.grmrice.com Consolidated figures 6
Slide 8: Q4 & FY23 Consolidated Income Statement
Q4 & FY23 Consolidated Income Statement Particulars (Rs Crs) Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Comments Revenue from Operations 433.6 362.1 19.8% 356.9 21.5% 1,379.5 1,134.3 21.6% • Q4 Revenue saw a good growth of 19.8% Other Income 4.5 14.8 (69.7%) 8.2 (45.4%) 12.8 37.1 (65.6%) YoY driven
Slide 9: Annual Financial Highlights
Annual Financial Highlights 8
Slide 10: Key Financial Parameters
Key Financial Parameters Total Revenue (Rs Crs) EBITDA (Rs Cr) EBITDA Margins (%) PAT (Rs Cr) PAT Margins (%) 1,600 90 8% 7.2% 1,392 80 7% 1,400 140 12% 85 11.1% 1,171 70 1,200 5.7% 6% 1,111 120 130 9.2% 10% 60 63 1,000 100 111 5% 7.7% 4.1% 806 8% 50 790 8.0% 4.5% 800 4% 80 40 45 74 6% 600 3% 60 30
Slide 11: Key Financial Parameters
Key Financial Parameters Inventory Days Working Capital Days 90 83 180 167 169 80 160 147 70 63 140 127 131 60 120 50 50 50 100 40 80 30 26 60 20 40 10 20 0 0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Current Ratio (x) Gross D/E (x) 2 1.4 1.4 1.4 1 1.2 6 5.7 1 1.1 5 1 4 1 1 3 2.3 0 2 1.4 1.6
Slide 12: Key Financial Parameters
Key Financial Parameters Return on Asset (%) Return on Equity (%) 0 40.9% 0 12.7% 35.2% 10.9% 0 0 0 33.6% 0 8.8% 0 8.0% 0 22.9% 0 0 0 14.9% 0 0 0 1.8% 0 0 0 0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Interest Coverage Ratio (X) 7.1 5.7 5.0 3.3 2.2 FY19 FY20 FY21 FY22 FY23 © 2023 – All Right
Slide 13: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs Crs) FY19 FY20 FY21 FY22 FY23 Comments Revenue from Operations 1,109.1 777.2 799.4 1,134.3 1,379.5 • Revenue is up by 21.6% YoY in FY23 Other Income 1.5 12.8 6.4 37.1 12.8 as exports business grew by 17% YoY Total Revenue 1,110.5 790.0 805.8 1,171.4 1,39
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Crs) FY21 FY22 FY23 Particulars (Rs Crs) FY21 FY22 FY23 1. Equities and Liabilities II. Assets Shareholders' Fund (A) 135.2 206.6 275.1 Non-Current assets (D) 37.7 39.6 51.1 (a) Equity Share Capital 3.9 12.0 12.0 (a) Tangible assets 35.4 36.7 37.7 (b) Other
Slide 15: Company Overview
Company Overview 14
Slide 16: GRM Group - Journey So Far
GRM Group - Journey So Far GRM Overseas Ltd. GRM Foodkraft Pvt. Ltd. 1974- 2019- 2022 - 1980 1988 1995 2016 2020 2021 1979 2023 2023 • Appointment of CEO and Production capacity COO of GRM Foodkraft doubled by • Tie up with Udaan, Listing Set-up subsidiary in UK & • Tie-up with establishing another
Slide 17: GRM Group - Business Overview
GRM Group - Business Overview Own Brands 5% Export Business Basmati Rice Private Label FY23 Revenue: 95% Rs. 1,063 Crs FY23 Revenue: Rs. 1,392 Crs GRM Overseas Limited holds 94.69% shareholding GRM Foodkraft Private Limited Domestic Business Rice | Wheat Flour | Biryani Kit | Spices | Own Brands Edi
Slide 18: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Annual Production Capacity 440,800MT Panipat Naultha Gandhidham (Haryana), (Haryana), (Gujarat), Domestic Market Domestic Market Export Market Our Facilities Conform to World-Class Standards Production & Processing Facility ▪ 3 Milling Plants: 550 MT per day
Slide 19: Over Four Decades of Experience in Rice Export Business
Over Four Decades of Experience in Rice Export Business Export Revenue (Rs Crs) * Leading Rice Exporter, Expanding in Domestic market through 10X Brand CAGR – 28% Established as a quality Basmati Rice producer and supplier 1,063 worldwide 911 652 Gradually expanding its reach, GRM has developed a ma
Slide 20: GRM Foodkraft: Transforming to a Consumer Staples Major in India
GRM Foodkraft: Transforming to a Consumer Staples Major in India 10X Product Portfolio General Trade 125 Distributors 105K Touch Point (Kirana Stores) RTE Ready To Eat RICE | ATTA | OIL | SPICES | BIRYANI RTC Ready To Cook 10X Revenue (Rs Crs) CAGR – 113% 264 Modern Trade 189 58 FY21 FY22 FY23 © 202
Slide 21: Growth Strategies
Growth Strategies 20
Slide 22: Strengthening Retail Outreach and Market Penetration
Strengthening Retail Outreach and Market Penetration Enhancing Domestic Presence through both General Trade and Modern Trade Maiden foray into Agrotech Modern Trade GRM Signed MoU with Signed Agreements with HFN to sell our 10X products through General Trade Kirana Stores Online Platform Kisan Store
Slide 23: Developing High-Quality Product Lines under 10X Brand
Developing High-Quality Product Lines under 10X Brand Diversified Products Under Key Brands Recently Launched Ready-to-Cook Biryani Kit Other Products RICE ▪ Classic XXXL Golden Sella ▪ Aromatic Rice ▪ Hyderabadi Biryani ▪ Wheat Flour (Atta) ▪ Premium Blue ▪ Sella Basmati Basmati ▪ Zarda King Golden
Slide 24: Building Brand Value through Efficient Market Strategies
Building Brand Value through Efficient Market Strategies Positioning 10X Brand through strategic investments Marketing Activities and Brand Promotion and promotions Digital Media Promotion ▪ Gokhana (Tobox Ventures Pvt. Ltd.) is a food tech app which brings together corporate admin’s, their employee
Slide 25: Foray into new businesses
Foray into new businesses GRM Overseas Ltd Harvesting India P Ltd HFN to procure up to 20,000 MT of paddy, sign MoU About HFN 12,000 MT of wheat, and 5,000 MT of mustard Works with farmers throughout the crop for GRM in 2023 lifecycle (from seed to market) Ensure Supplies through Raw Material Procur
Slide 26: Supported by Robust "FARM to FORK" Model
Supported by Robust “FARM to FORK” Model Raw Material Branding & Distribution Procurement Marketing Research and Processing & Packaging & Consumption by Innovation Manufacturing Warehousing end-consumer © 2023 – All Rights Reserved | www.grmrice.com 25
Slide 27: Able Management team aided by Experienced Professionals
Able Management team aided by Experienced Professionals Expanding into high-growth markets by attracting “THE VERY BEST” People With over 20 Sanjeev, a Dinesh, a years of process-oriented seasoned experience, Atul, professional, has professional a second- over 30 years of having over 25 generation m
Slide 28: Opportunity Landscape
Opportunity Landscape 27
Slide 29: Building Brand Value through Efficient Market Strategies
Building Brand Value through Efficient Market Strategies Indian Packaged Foods Market shows a Trend of Doubling Every 5 Years Indian Packaged Food Market (USD bn) Indian Packaged Food Constitutes 279 Organised 17% Dairy Snacks Products 21% 167 29% 14% 100 Staple Unorganised 83% 56 28 36% 15 Cooking
Slide 30: Future Growth Well Supported by Strong Industry Triggers
Future Growth Well Supported by Strong Industry Triggers Global Rice Industry has Immense Opportunity for Growth Global Export of Basmati Rice (USD bn) India – branded basmati rice Market Share (Rs billion) FY21 4.7 FY25E 140 FY17 3.6 FY20 100 CAGR:~7% 5-year CAGR:~7% Global Basmati Rice Opportunity
Slide 31: Recent product launch opportunities
Recent product launch opportunities Domestic Market India – branded wheat flour Market India – branded Edible oil Market Share (Rs billion) Share (Rs billion) * FY25E 290 FY25E 2,140 FY20 145 FY20 1,560 5-year CAGR:~19% CAGR:~8% * Company to Launch edible oil soon Indian Wheat Market Indian Edible O
Slide 32: Potential Opportunity to Increase Total Addressable Market
Potential Opportunity to Increase Total Addressable Market Growth Drivers in Place for GRM to be a Key Player in Indian Consumer Staples Space • Indian consumers and markets have Customer Preferences: changed drastically over the past With Increasing awareness about health and hygiene, consumers pre
Slide 33: Annexures
Annexures 32
Slide 34: Growing Responsibly: Moving Towards ESG Compliance
Growing Responsibly: Moving Towards ESG Compliance Environment ▪ Maintaining ecological balance ▪ Promoting animal welfare ▪ Improving access to safe water, sanitation and hygiene ▪ Aiding the differently-abled ▪ Empowering women and promoting gender equality ▪ Supporting rural sports, art and cultu
Slide 35: Thank You
Thank You GRM Overseas Limited www.grmrice.com Ernst & Young LLP Vikash Verma I Rohit Anand | Riddhant Kapur Vikash.Verma1@in.ey.com I Rohit.Anand4@in.ey.com | Riddhant.Kapur@in.ey.com © 2023 – All Rights Reserved | www.grmrice.com