Grm Overseas Ltd. · NSE:GRMOVER
Grm Overseas — Q3 FY2023 Earnings Presentation
36 slides from Grm Overseas's earnings presentation, Feb 11, 2023
Slide 1: Cover letter to stock exchanges
GRM OVERSEAS LIMITED GRM X Date: 11.02.2023 To, The General Manager The Manager BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Listing Department Exchange Plaza Phiroze Jeejeebhoy Towers Sth Floor, Plot No. C-1, Block-G Dalal Street Bandra-Kurla Complex, Bandr
Slide 2: Investor Presentation Q3 & 9MFY23
Creating India’s Largest & Trusted Standalone Consumer Staple Brand Investor Presentation Q3 & 9MFY23 February 2023 GRM Overseas Limited © 2022 – All Rights Reserved | www.grmrice.com BSE:531449 | CIN: L74899DL1995PLC064007 | www.grmrice.com
Slide 3: Quarterly Financial Highlights
Quarterly Financial Highlights 2
Slide 4: Q3 & 9MFY23 – Key Performance Indicators
Q3 & 9MFY23 – Key Performance Indicators Export (Rs Cr) Foodkraft (Rs Cr) Total Revenue (Rs Cr) 711 954 621 795 365 211 234 313 201 121 132 78 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 PAT (Rs Cr) PAT Margins (%) EBITDA (Rs Cr) EBITDA Margins (%) 8.7% 13.1% 80 10% 120 12.7% 14% 8.5% 9%
Slide 5: Quarterly Trends
Quarterly Trends Export (Rs Cr) Foodkraft (Rs Cr) Total Revenue (Rs Cr) 377 365 290 313 319 265 234 270 211 212 121 78 57 38 41 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 EBITDA (Rs Cr) EBITDA Margins (%) PAT (Rs Cr) PAT Margins (%) 30 8.5% 9% 45 12.7% 14% 8% 40 9.7% 12% 2
Slide 6: Q3 & 9MFY23 Consolidated Income Statement
Q3 & 9MFY23 Consolidated Income Statement Particulars (Rs Crs) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY FY22 Revenue from Operations 356.9 296.8 20.3% 270.6 31.9% 945.8 772.2 22.5% 1,134.3 Other Income 8.2 16.4 (50.1%) (0.5) - 8.3 22.3 (62.9%) 37.1 Total Revenue 365.1 313.2 16.6% 270.2 35.2% 9
Slide 7: Discussion Summary
Discussion Summary Company Overview Strategic Roadmap Opportunity Landscape Financial Highlights Annexures
Slide 8: Company Overview
SU, Company Overview
Slide 9: Message from the Management, Vision, Mission
Message from the Management “Focused on improving the Company’s brand visibility, we are well poised to meet the increasing demand and move up Vision in the food value chain. We are actively To be the most preferred company of choice for all our diversifying our portfolio with more customers, in Ind
Slide 10: Journey So Far
Journey So Far 1974 - 2022 - 1980 1988 1995 2016 2019 2020 2021 1979 2023 Appointment of CEO and Production capacity Issued Bonus Shares COO of GRM Foodkraft doubled by establishing at 2:1 ratio another Plant at Panipat Tie up with Udaan, Listing Set-up subsidiary in UK & launched Tie-up with major
Slide 11: GRM Overseas – Decoding The Growth Mantra
GRM Overseas – Decoding The Growth Mantra Leading Rice Exporter, Expanding in Domestic market through 10X Brand Established as a quality Basmati Rice producer and supplier worldwide Incorporated GRM Foodkraft in India in FY21 to launch it’s flagship domestic brand “10X” Vast portfolio of “10X” entai
Slide 12: Export Business – Leading from Front
Export Business – Leading from Front Over Four Decades of Experience in Rice Export Business Produce, supply and market high-quality rice in 42 countries around the world through wide range of distribution network from offices located at the UK, the US, Middle East Exports contributed around 80% sha
Slide 13: Technically Advanced Manufacturing Facilities
Technically Advanced Manufacturing Facilities Annual Production Capacity 440,800MT Panipat (Haryana) Naultha Kutch (Gujarat), Domestic Market (Haryana), Export Market Domestic Market Our Facilities Conform to World-Class Standards Production & Processing Facility GMP Certified ISO 22000.2005 Kosher
Slide 14: GRM 2.0: Transforming to a Consumer Staples Major
GRM 2.0: Transforming to a Consumer Staples Major Aptly Positioned to Expand Our Consumer Staples Business in India GRM has set-up a subsidiary “GRM Foodkraft Private Limited” in the month of July 2020 to specifically focus on the domestic market In the month of Nov 2022, GRM increased its sharehold
Slide 15: 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 © 2022 – All Rights Reserved | www.grmrice.com 14
Slide 16: Recent foray into Agrotech space
Recent foray into Agrotech space 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
Slide 17: Strategic Roadmap
Strategic Roadmap 16
Slide 18: Roadmap for 10X Success
Roadmap for 10X Success Strengthening Team Enhancing brand through on-boarding visibility with efficient industry professionals market strategies Develop high-quality with rich experience Expanding Retail product lines to and network outreach by expand 10X Direct- increasing presence to-Consumer bot
Slide 19: 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 ▪ Hyderabadi Biryani ▪ Wheat Flour (Atta) ▪ Classic XXXL Golden Sella ▪ Aromatic Rice Basmati ▪ One Pot Moradabadi ▪ Ready to Eat Briyani ▪ Prem
Slide 20: 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 21: 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 22: 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 23: Opportunity Landscape
SU, Opportunity Landscape 22
Slide 24: Indian Packaged Foods Market Doubling Every 5 Years
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% 100 14% Staple Unorganised 56 83% 28 36% 15 Cooking
Slide 25: 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% Indian Market Global Basmati Ri
Slide 26: 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 27: 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 28: Financial Highlights
SU, Financial Highlights
Slide 29: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs Crs) FY18 FY19 FY20 FY21 FY22 Revenue from Operations 944.1 1,109.1 777.2 799.4 1,134.3 Other Income 0.1 1.5 12.8 6.4 37.1 Total Revenue 944.2 1,110.5 790.0 805.8 1,171.4 EBITDA 35.1 36.1 60.4 73.5 129.3 EBITDA Margins % 3.7% 3.2% 7.7% 9.2% 11.4% Depreci
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Crs) FY21 FY22 H1FY23 Particulars (Rs Crs) FY21 FY22 H1FY23 1. Equities and Liabilities II. Assets Shareholders' Fund (A) 135.2 206.6 235.3 Non-Current assets (D) 37.7 39.6 40.5 (a) Equity Share Capital 3.9 12.0 12.0 (a) Tangible assets 35.4 36.7 35.8 (b) O
Slide 31: Strengthening Financial Parameters
Strengthening Financial Parameters Total Revenue (Rs Crs) EBITDA (Rs Cr) EBITDA Margins (%) 1,400 11.4% 1,171 140 12% 1,200 1,111 9.2% 120 10% 1,000 944 7.7% 100 790 806 8% 800 80 6% 600 60 3.7% 3.2% 4% 40 400 2% 20 200 35 36 60 74 129 0 0% 0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT (Rs
Slide 32: Strengthening Financial Parameters
Strengthening Financial Parameters Inventory Days Gross D/E (x) 100 88 5.7 90 6 5.4 80 5 70 63 4 50 50 60 50 3 2.3 40 2 1.4 1.6 30 26 1 20 10 0 0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Working Capital Days 180 167 Current Ratio (x) 2 160 147 1.4 1.4 140 128 127 131 1 1.2 120 1 1.1 1.1 1 1
Slide 33: Strengthening Financial Parameters
Strengthening Financial Parameters Interest Coverage Ratio (X) Return on Capital Employed (%) 7.1 23.2% 21.9% 0 5.7 0 19.2% 0 3.3 9.6% 2.4 2.2 0 8.3% 0 0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Return on Asset (%) Return on Equity (%) 0 12.7% 0 40.9% 10.9% 35.2% 0 0 0 33.6% 0 8.8% 0 0 0 22
Slide 34: Annexures
SU, Annexures 33
Slide 35: 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 36: Thank You
Thank You GRM Overseas Limited www.grmrice.com Ernst & Young LLP Vikash Verma I Rohit Anand Vikash.verma1@in.ey.com I Rohit.anand4@in.ey.com © 2022 – All Rights Reserved | www.grmrice.com