Krbl Limited · NSE:KRBL
Krbl — Q3 FY2019 Earnings Presentation
34 slides from Krbl's earnings presentation, Feb 8, 2019
Slide 1: Exchange cover letter on Q3 results investor communication
E: KRBL/BIBHU/STKwEXJ819/59 February 8, 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 Bandra (E) Dalai Street Mumbai-400051 Mumbai - 400 001 Scrip
Slide 2: Investor Presentation Q3FY19 Results
Investor Presentation Q3FY19 Results
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: Q3FY19 & 9MFY19 Performance
Q3FY19 & 9MFY19 Performance 3
Slide 5: Q3FY19 & 9MFY19 – Standalone Financials (1/2)
Q3FY19 & 9MFY19 – Standalone Financials (1/2) Q3FY19 - YoY 9MFY19 – YoY • Q3FY19 revenue from operations at Rs. 936 cr. as compared to Rs. 783 cr. in 936 2,924 783 2,371 Q3FY18; a growth of 19.5% Y-o-Y. Revenue from • 9MFY19 revenue from operations at Rs. Operations 2,924 cr. as compared to Rs. 2,37
Slide 6: Q3FY19 & 9MFY19 - Standalone Financials (2/2)
Q3FY19 & 9MFY19 - Standalone Financials (2/2) Q3FY19 - YoY 9MFY19 – YoY • Q3FY19 PAT at Rs. 108 cr. (11.5%) as compared to Rs. 124 cr. (15.8%) in 365 367 Q3FY18. 124 108 PAT • 9MFY19 PAT at Rs. 367 cr (12.6%) as (Rs. In Crore) compared to Rs. 365 cr. (15.4%) for 9MFY18. • Q3FY19 EPS at Rs. 4.59 as c
Slide 7: Q3FY19 vs. Q3FY18 – Business update
Q3FY19 vs. Q3FY18 – Business update 4% 2% Q3FY18 Q3FY19 • Contribution of Export Business increased from 32% to 36%. 32% Segment 36% ₹ 783 ₹ 936 Revenue cr cr 62% 64% • Indian Market Rice Sales increased by 14% in quantity terms, and 16% in value terms during the quarter, as compared to same period
Slide 8: Strong financial indicators…
Strong financial indicators… Total Debt to Equity Ratio Interest Coverage Ratio 21.15 0.61 0.61 17.52 Dec'17 Dec'18 Dec'17 Dec'18 Current Ratio Quick Ratio 1.79 1.92 0.17 0.16 Dec'17 Dec'18 Dec'17 Dec'18 Investor presentation – Feb 2019 7
Slide 9: Q3FY19 - Key Marketing Initiatives
Q3FY19 - Key Marketing Initiatives 8
Slide 10: 360 degree campaign
360 degree campaign Special days deserve something special on your plate. Hence on the festive occasion of Diwali, KRBL launched a 360 degree campaign to promote the flagship product from its portfolio – INDIA GATE CLASSIC Campaign Reach TV Radio OOH Digital Retail Print PDSM Investor presentation –
Slide 11: Campaign Presence & Impact
Campaign Presence & Impact Campaign Presence Campaign Impact 609 OOH units in 22 3,860 spots across 51 47% increase in total Cities across India channels Retail Penetration of IG Classic 15,000+ Retail outlets 16,000+ spots Monthly Billing increased covered by POSM across 20 cities by 125% in 6,000
Slide 12: Company Overview
GS KRBLiimitea Company Overview
Slide 13: A leading branded FMCG company. India's largest producer and exporter of Basmati rice
A leading branded FMCG company. India's largest producer and exporter of Basmati rice • Established in 1889, KRBL is India's first integrated rice company. FY18 Financials (Standalone Financials) • Present in the entire value chain from seed development and multiplication, contact farming, productio
Slide 14: 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 Rs. Received Stock Exchange & 1 per share ISO-9002 for the 2006 Ahmedabad Gautam Budh GDR
Slide 15: Key investment highlights
Key investment highlights 1 Basmati Rice- Attractive industry dynamics Undisputed Opportunities in leader with new growth dominant brand segments positioning 2 6 Strong Robust financial manufacturing performance and distribution With a fully strength 3 5 integrated business model 4 Investor presenta
Slide 16: 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 • Basmati producing regions are limited. Exclusively grown • Introduction of higher yielding and shorter duration Growing urbanisation in
Slide 17: KRBL is the undisputed leader of Indian Rice Industry
2 KRBL is the undisputed leader of Indian Rice Industry INDIA GATE – The flagship brand Top 5 brands (by value) • Largest selling brand of India. Market share (%) in India Market share (%) in Metro Market Market share (%) in Town class I • Well-established in both the 35 36 24 40 Indian market as we
Slide 18: The #1 brand in several lucrative International markets
2 The #1 brand in several lucrative International markets Exports to 81 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) i
Slide 19: 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 Investor presentation – Feb 2019 18
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Robust financial performance, fundamentals comparable to FMCG standards
5 Robust financial performance, fundamentals comparable to FMCG standards Revenue 1&2 (in ₹ Crores) and Capacity Utilization 3 (%) EBITDA1 (in ₹ Crores) and EBITDA Margin (%) 4,000 100% 792 800 40% 3,363 3,247 3,160 3,148 654 2,910 80% 3,000 600 30% 532 508 2,080 60% 442 2,000 400 24.3% 20% 56.0% 40
Slide 28: Continuous deleveraging, improving profitability
5 Continuous deleveraging, improving profitability Total Debt to Equity Ratio Interest Coverage Ratio 14.79 1.50 15.00 1.35 1.09 1.12 9.64 1.00 10.00 0.80 7.97 0.58 0.55 5.63 5.59 0.50 5.00 3.72 0.00 0.00 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Current Ratio Quick Ratio 2.50 0.30
Slide 29: Reduction in cash conversation cycle despite heavy procurement
5 Reduction in cash conversation cycle despite heavy procurement (in ₹ Crores) Inventory Net Debt 3,365 • Net debt starts rising with the 2,714 commencement of procurement of paddy in Q3 every year and becomes insignificantly low by September of 1,417 1,560 the next year. This is a cyclical 1,289 1,
Slide 30: 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 31: 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 Leadership Award for for outstanding export for display of the 2015, ASI, & GCC, was awarded the dominant position in performance for the year heavies
Slide 32: Highly experienced leadership team recognised by industry
Highly experienced leadership team recognised by industry Anil Kumar Mittal • Visionary of the company, provides strategic direction to all aspects of the business Chairman and Managing Director • Over 44 years of experience in the rice industry • Founder and former president of All India Rice Expor
Slide 33: Shareholding Pattern
Shareholding Pattern 19.15% Promoters Bank, FI, Insurance & Mutual Fund Foreign Portfolio Investor 14.48% 58.81% NRI/OCB / Foreign National/QFI 6.73% Public/ Other 0.83% Data as of 31 December 2018 Investor presentation – Feb 2019 32
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 33