Krbl Limited · NSE:KRBL
Krbl — Q4 FY2024 Earnings Presentation
35 slides from Krbl's earnings presentation, May 20, 2024
Slide 1: Exchange cover letter for investor presentation
Ref: KRBL/SE/2024-25/10 May 20, 2024 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 Scrip Code:
Slide 2: KRBL Ltd. Investor Presentation - Q4 FY2024
KRBL Ltd. Investor Presentation - Q4 FY2024 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 3: Leading basmati exporter - exports to 90+ countries
Leading basmati exporter - exports to 90+ countries Rs. 5,482 Cr 16.4% 10.9% FY 24 Total Income FY 24 EBITDA FY 24 PAT 36.9%* 55.4%* 10 million+ Household reach in Highest GT Market Share Highest MT Market Share India Rs. 6,348 Cr Market Cap. as on 28th Mar’24# * Q4 FY24 Market share of basmati pack
Slide 4: Our Enduring Strength
Our Enduring Strength BRAND STRENGTH India Gate - No.1 Basmati Rice Brand in World along with 14 brands cater to consumer and HoReCa segments across the globe. KRBL is market leader in branded basmati rice. DISTRIBUTION AND SUPPLY CHAIN 800+ distributor across India, Exports to 90+ countries INTEGRA
Slide 5: Long Term Performance and Value Creation
Long Term Performance and Value Creation SHAREHOLDER REVENUE PAT MARKET CAP PAYOUT FY 2024 FY 2024 FY 2024 Dividend+Buyback Rs. 946 Cr* >Rs. 5K Cr >Rs. 596 Cr >Rs. 6K Cr 1.9X 2.3X 5.4X FY 14 to FY 24 vs FY 2014 vs FY 2014 vs FY 2014 Long term value creation for stakeholders 4 *It excludes any taxes
Slide 6: Pricing power driven by strong brand
Pricing power driven by strong brand FY18 FY19 FY20 FY21 FY22 FY23 FY24 Paddy Cost Blended Rice Realisation • Continuous basmati rice realization increase corresponding to paddy cost increase – ability to consistently pass on higher input costs reflects KRBL’s brand strength. Note: Chart represents
Slide 7: Robust Cash Flow - Lower Debt Dependence
Robust Cash Flow - Lower Debt Dependence 6,000 5,000 4,000 0.49 0.51 3,000 2,000 0.12 1,000 0.08 0.01 0.02 - (0.10) -1,000 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net Bank Debt Net Worth Debt : Equity Ratio 6
Slide 8: Strategically located facilities
Strategically located facilities … Manufacturing and procurement facilities situated in close proximity to the Basmati growing regions Sonipat, Haryana Dhuri, Punjab Grading, Sorting & Packaging Capacity – 20 MT/Hr Rice processing, grading and packaging – 150 MT/Hr Punjab Grading, Sorting & Packagin
Slide 9: Q4 FY24 Consolidated Performance Highlights
Q4 FY24 Consolidated Performance Highlights Total Income Gross Profit EBITDA PAT 1,327 341 187 114 89 371 4,858 4,451 Cash & Bank balance* Net Bank Borrowings Net worth Total Inventory All figures in Rs . crore and are based on consolidated financials 8 *Includes Other Bank balances and Investments
Slide 10: Revenue Performance Overview
Revenue Performance Overview 0.4% 3% 5,365 5,385 97 103 1,280 1,318 17 20 3,337 3937 932 1,009 1,931 1345 331 292 Q4 FY23 Q4 FY24 12M FY23 12M FY24 Exports Domestic Power Exports Domestic Power • Domestic Revenue grew by 8% and 18% in Q4 FY24 and 12M FY24 on y-o-y basis. Robust growth seen in both c
Slide 11: Profitability Metrics for Q4 FY24
Profitability Metrics for Q4 FY24 Gross Profit EBITDA 26.6% 25.7% 14.1% 14.1% • Reduction in gross margin primarily attributed to the increased cost of basmati rice input (7% y- o-y), which outpaced the rise in average basmati 352 341 realization prices. 187 187 • EBITDA margin at 14.1% benefited fr
Slide 12: Profitability Metrics for 12M FY24
Profitability Metrics for 12M FY24 Gross Profit EBITDA 18.9% 16.4% 30.6% 27.0% 1032 1673 899 1482 • Gross Margin reduction is attributed to increased 12M FY23 12M FY24 basmati input costs and lower exports. 12M FY23 12M FY24 • EBITDA and PAT followed the trend in Gross Margin, partially benefiting f
Slide 13: Superior Balance Sheet Matrix
Superior Balance Sheet Matrix Current Ratio (%) Inventory Position (‘000 MT) 12 444 9 407 404 306 Q4 FY23 Q4 FY24 Paddy Rice • The rise in inventory days is Q4 FY23 Q4 FY24 primarily on account of higher Working Capital Days Inventory Position (Rs. Crore) per MT paddy and rice costs. • Overall liqui
Slide 14: Superior Balance Sheet Matrix
Superior Balance Sheet Matrix Net Bank Borrowing (Rs. Crore) • Higher Net Bank Borrowing primarily on account of 371 higher closing inventory. • ROCE is lower because of higher Capital employed and lower margins in current period. 77 • Strong credit ratings from ICRA (AA(Stable)) and [ICRA] A1+; and
Slide 15: India Business
India Business 14 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 16: Continuing Market Leadership
Continuing Market Leadership 1,009 Revenue* in Rs. Crore for Q4 FY24 • Growth primarily fueled by a increase in branded basmati sales, alongside a 53% surge in non-basmati sales. Trend in Domestic Business • Robust volume growth in both consumer and family pack segments. 8% • FY24 value sales higher
Slide 17: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 18: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 19: Branded Basmati growing on the back of India Gate's widespread presence
STRATEGIC PILLAR 1 Branded Basmati growing on the back of India Gate’s widespread presence HOUSEHOLD PENETRATION | ALL INDIA URBAN KWP | (MAT MAR’24) INDIA GATE PEN. 10% with 10% Penetration Growth for Branded Basmati in the latest quarter (Q4 FY24 vs. Q3 FY24) coming on the back of India Gate, at 1
Slide 20: Continued & relevant Media presence & extensions
Continued & relevant Media presence & extensions STRATEGIC PILLAR 1 BASMATI RICE se NO COMPROMISE PANKAJ TRIPATHI – TV & AYODHYA RAM MANDIR AI-POWERED REPUBLIC DAY DIGITAL Continued Journey of Pankaj Tripathi Contextual communication for the most Pious Partnership with the timeless Campaign on TV &
Slide 21: Brand Integrations across occasions
…and Brand Integrations across occasions STRATEGIC PILLAR 1 CELEBRATING OCCASIONS WITH INDIA GATE BRAND BANTER @ HOLI WOMEN’S DAY AI-POWERED REPUBLIC DAY "What's the one thing you refuse to Honoring the remarkable women who Blending Heritage & Technology, to compromise on during Holi?" sparked have
Slide 22: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 23: Densifying distribution reach & Improving availability
STRATEGIC PILLAR 2 Densifying distribution reach & Improving availability Strongest outlet presence in the category RETAIL PRESENCE | JFM’24 All Channels (TT+MT) 3,75,961 + 44,000 Outlets (vs. JFM’23) NUMERIC DISTRIBUTION | JFM’24 Traditional Trade 55% +770 bps (vs. JFM’23) *Numeric Distribution = (
Slide 24: Strategic Pillars | Domestic
STRATEGIC PILLARS | DOMESTIC 1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
Slide 25: Positive response for Regional Rice & Biryani Masala offerings
STRATEGIC PILLAR 3 Positive response for Regional Rice & Biryani Masala offerings REGIONAL RICE BIRYANI MASALA RANGE Positive response for India Gate Classic Biryani Masala - from celebrities to Positive response to Aged Regional Rice offerings from the house consumers of India Gate – SURTI KOLAM, J
Slide 26: Rewards & Recognition | FY 23-24
REWARDS & RECOGNITION | FY 23-24 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23 INDIA GATE GOLD CHAALCHITRA CAMPAIGN
Slide 27: Export Business
Export Business *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 28: Leadership beyond India
Leadership beyond India 292 Revenue in Rs. Crore for Q4 FY2 4 • Basmati revenue higher by 8% on y-o-y basis. • Export revenue lower primarily on on account of Trend in Export Business lower non-basmati revenue (lower by 97% on y-o-y basis) on account export restrictions. -12% Revenue growth Y-o-Y 27
Slide 29: 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 30: 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 31: Exports Brand Portfolio
Exports Brand Portfolio 30
Slide 32: ESG Initiatives
ESG Initiatives 31 *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23
Slide 33: Initiatives
Initiatives Social Environment Environment 25000* Plantation 10% Mid-day meals served per day to school children Land being used for Miyawaki Plantation which Recycled plastics in Category 1 (PET Jars) by setting up a centralized kitchen to implement helps in lower temperatures in concrete heat ther
Slide 34: 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 35: Thank You
Thank You *As per Mordor Intelligence Report on packaged basmati rice, MAT Jun’23