Slide 1: Exchange filing cover letter for Q1 FY20 investor communication
.... E:KRBL/BIBHU/STK_EX_1920/35 1 August 2019 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 Sandra (E) Dalal Street Mumbai - 400 001 / Mumbai-400051 Sc
Slide 2: Investor Presentation Q1 FY20
Investor Presentation 1 Q1 FY20
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: Q1FY20 Performance
Q1FY20 Performance 3 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 5: Q1FY20 Performance Highlights – Consolidated Financials
Q1FY20 Performance Highlights – Consolidated Financials (in INR cr) Revenue from Operations EBITDA PBT 1,218 240 31% 64% 199 34% 183 149 743 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 PAT EPS (in INR) Net Worth 136 36% 5.78 2,864 100 4.25 2,388 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Jun'18 Jun'19 Note: EBITDA,
Slide 6: Consolidated Segment: Q1FY20 Business Update
Q1FY20 Business Update Q1FY20 Q1FY19 % change Rice Qty Rate Rate Value Sales* (in (in Value Qty (in (in Rs. Qty Price Value (in Rs. Cr) (in MTS) (in MTS) Realization MTS) Rs./Mt) Rs./Mt) Cr) Indian Market 85,299 58,622 500.04 70,645 53,729 379.57 20.74% 9.11% 31.74% Sales Export Market 73,209 84,913
Slide 7: Robust financial indicators…
Robust financial indicators… Net Debt to Equity Interest Coverage Ratio 9.79 9.75 0.32 0.24 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Quick Ratio Current Ratio 2.68 3.07 0.42 0.30 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Note: 1. EBITDA, PBT and PAT as a % of revenue from operations (excluding other income) 2. Net Debt = Tota
Slide 8: Q1FY20 Key Marketing Initiatives
Q1FY20 Key Marketing Initiatives 7 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 9: 360-degree campaign
360-degree campaign TV OOH Radio Print 3,500+ spots in 14 15 insertions in top 82,000 Spots in 42 1,162 sites across 27 cities and 38 radio national magazines channels across India cities in India channels Q1FY20 Investor Presentation 8
Slide 10: Digital Campaigns
Digital Campaigns Best ever Digital Campaign for India Gate Basmati Rice 400,000 people reached through Twitter ~ 4 crore people reached through Social Media ~12 Million video views 9 Q1FY20 Investor Presentation
Slide 11: Company Overview
Company Overview 10 https://www.youtube.com/watch?v=ftO8luxERI0
Slide 12: A leading branded FMCG company - India's largest producer and exporter of branded Basmati rice
A leading branded FMCG company - India's largest producer and exporter of branded 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,
Slide 13: 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 14: Key investment highlights
Key investment highlights Basmati Rice- Attractive industry dynamics Strong Corporate 7 1 Governance KRBL’s unique positioning 2 6 Opportunities Strong in new growth manufacturing and segments distribution strength 3 5 4 Robust financial Fully integrated performance business model Q1FY20 Investor Pr
Slide 15: 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 • Grown only once a year in the Indo-Gangetic plain, • Introduction of higher yielding and shorter duration Growing urbanisation Basmati
Slide 16: INDIA GATE – The flagship brand
2 What makes KRBL unique… LEGACY NETWORK 130 years of rich industry 484 dealer and distributor network in INDIA GATE – The flagship brand experience India 250,000 acres contract rice farming network #1 Largest exporter of Branded BRAND Basmati Rice from India #1 Largest selling brand in India #1 Wor
Slide 17: KRBL's presence in several lucrative International markets
2 KRBL’s presence in several lucrative International markets Exports to 82 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
Slide 18: 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 Q1FY20 Investor Presentation 17
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: Robust financial performance; fundamentals comparable to FMCG
5 Robust financial performance; fundamentals comparable to FMCG 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% 2,000 52.1
Slide 27: 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 28: Efficient working capital management with near-zero, long-term debt
5 Efficient working capital management with near-zero, long-term debt (In INR cr) Inventory Net Debt 3,129 2,462 2,020 1,796 1,303 1,327 1,289 1,417 1,424 1,150 1,087 1,176 566 586 220 0 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19* H2FY19 • Most of the debt for the Company is in the form of wor
Slide 29: 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 30: Business Holdings
7 Business Holdings 15.1% Promoters Bank, FI, Insurance & Mutual Fund Foreign Portfolio 18.3% Investor NRI/OCB/ Foreign National/ QFI 58.8% Public/ Other 6.9% 0.9% As of 30th June, 2019 Q1FY20 Investor Presentation 29
Slide 31: 130-year old legacy, led by a committed management
7 130-year old legacy, led by a committed management 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 Exporters
Slide 32: Ploughing back profits to drive growth…
7 Ploughing back profits to drive growth… Management remuneration as a % of Profits History of three generations perfecting the Basmati grain 0.8% 0.7% 0.7% Committed to enhancing capacities and 0.6% introducing latest milling techniques to the 0.5% Basmati rice industry. Long-standing relationships
Slide 33: 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 34: 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/