KRBL Limited Earnings Conference Call Summary (May 31, 2024)
Overview
• Earnings Conference Call held on May 24, 2024.
• Discussed audited financial results for Q4 and fiscal year ending March 31, 2024.
• Key personnel included Chairman Anil Kumar Mittal and CFO Ashish Jain.
• Transcript available on the company's website, compliant with SEBI regulations.
• Included a Q&A session for analysts and investors.
Financial Performance Highlights
• Global Rice Production: Expected to reach 517.3 million metric tonnes for 2023-24, with consumption exceeding production.
• India's Rice Production: Slight decline to 135 million metric tonnes; optimism for basmati due to strong demand.
• Export Revenue: Q4 2024 revenue at Rs. 292 crore; total for fiscal year Rs. 1,345 crore.
• Domestic Revenue Growth: Increased by 18%, total income Rs. 5,482 crore, EBITDA Rs. 899 crore, PAT nearly Rs. 600 crore.
Sales and Market Share
• Q4 FY 2023-24 Performance: Domestic sales exceeded Rs. 1000 crores, 8% YoY growth.
• Market Share Gains: 36.9% in general trade, 55.4% in modern trade; e-commerce sales increased to 39%.
• Distribution Expansion: Added over 150 distributors and 44,000 retail outlets.
Strategic Focus and Challenges
• CAPEX for Non-Basmati Products: Plant expansions in Karnataka and Madhya Pradesh; revenue from non-basmati branded products at Rs. 212 crores.
• Operational Goals: Expand distribution for basmati rice, enhance product portfolio, explore new food categories.
• Export Challenges: Stagnation in Middle East markets due to payment issues; plans to establish own distribution in Saudi Arabia.
Future Outlook
• Market Recovery: Focus on stabilizing existing markets while exploring new opportunities.
• New Product Launches: Healthy edible oil product expected to generate significant revenue.
• E-commerce Growth: Revenue quadrupled over three years, with expectations of continued growth.
Conclusion
• KRBL Limited is committed to improving investor satisfaction while navigating challenges in export markets and expanding its domestic presence.

KRBL Limited Earnings Conference Call Summary
Date and Context
• Date of Call: February 15, 2024
• Announcement Date: February 21, 2024
• Focus: Unaudited financial results for Q3 and nine months ending December 31, 2023
Key Executives Present
• Chairman: Anil Kumar Mittal
• CFO: Ashish Jain
Financial Performance Highlights
• Q3 Domestic Sales: INR 1,143 crores (14% growth)
• Branded Business Milestone: First time surpassing INR 1,000 crores in a single quarter
• Market Share:
• Packaged basmati segment: 35.9% in general trade, 40.9% in modern trade
• Volume Growth: 13% over nine months, outperforming FMCG industry average
• Total Income: Decreased by 6% to INR 1,465 crores
• Export Revenue Decline: 47% drop impacting overall income
Challenges and Strategies
• Export Challenges:
• 37% decline in non-Basmati exports due to regulatory issues
• Significant drop in bulk exports to Europe due to competitive pricing
• Geopolitical Factors: El Nino and regional instability affecting rice prices
• Strategic Focus:
• Expanding operations in Karnataka and Madhya Pradesh
• Securing distributors in key markets like Saudi Arabia
Pricing and Market Dynamics
• Price Increase: 9-10% in domestic market, impacted by raw material costs
• Government Pressure: Concerns about maintaining low prices ahead of elections
• Future Outlook: Anticipation of price increases post-elections due to demand
Market Share Insights
• Regional Rice Target: On track to exceed INR 200 crores, now over 5% of revenue
• Market Dynamics: Shift from loose to branded rice, with increased consumption in Tier 1 and Tier 2 towns
• Competitive Landscape: Focus on leveraging brand equity against two major competitors
Export Market Challenges
• Financial Setback: Approximately Rs. 800-900 crores due to export declines
• Ongoing Efforts: Regaining market leadership in Saudi Arabia and Iran
Future Growth Prospects
• Fourth Quarter Expectations: Anticipating a 25-30% increase in export business
• Focus Areas: North America and Europe for potential growth through upcoming FTAs
Conclusion
• Overall Sentiment: Optimism for future growth despite current challenges
• Call Closure: Thank you from the moderator, with an invitation for further inquiries.

KRBL Limited Earnings Conference Call Summary
Date and Context
• Date of Call: November 9, 2023
• Announcement Date: November 17, 2023
• Focus: Unaudited financial results for Q2 and H1 of FY 2023-24
Key Insights from Management
• Global Rice Market:
• Projected increase in rice production despite challenges (El Niño, geopolitical tensions).
• High global rice prices due to India's export restrictions and potential domestic production decline.
• Strong demand for basmati rice with strategic procurement to manage market fluctuations.
• Distribution and Expansion:
• Stabilizing distribution in Saudi Arabia; exploring opportunities in Iraq.
• Expansion of operations in India.
Financial Performance Highlights
• Q2 Performance:
• Revenue (excluding power): INR 940 crores (35% YoY increase).
• Basmati segment volume growth: 26%.
• Market share in traditional trade: 34.5% (peak of 35.9% in September).
• Household penetration of India Gate brand: 11 million households (11% increase).
• Regional rice products sales: 105% increase.
• Total Income:
• Total income: INR 1,246 crores (7% decline YoY).
• Export revenue: INR 235 crores (60% decline).
• EBITDA margin: 18.3%.
• Profit after tax: INR 153 crores (down from INR 213 crores YoY).
• Higher inventory levels and cash balance: INR 1,268 crores (reduced due to buyback).
Q&A Session Highlights
• Export Performance Concerns:
• Issues in Saudi Arabia with current distributor; seeking new distributor.
• 60% drop in exports attributed to Saudi market issues and absence of bulk non-basmati rice exports to China.
• Future Outlook:
• Optimism for revenue ramp-up in exports by Q4.
• Targeting 5% contribution from non-basmati sales to domestic revenue.
• Market Growth Projections:
• Specific market numbers not shared; focus on risk mitigation strategies.
• Discussion on exclusivity of distributors and ongoing litigation.
• Distributor Issues:
• No settlement with current distributor due to nature of claims.
• Discussions ongoing for appointing a new HoReCa distributor.
Conclusion
• Despite challenges, management expressed a positive outlook for future sales and market demand, emphasizing strategic adjustments and growth opportunities.

KRBL Limited Earnings Conference Call Summary (August 11, 2023)
Financial Results Overview
• Q1 FY24 Results: Unaudited financial results for the quarter ending June 30, 2023.
• Total Income: INR 1,441 crores (up 16%).
• Profit After Tax (PAT): INR 195 crores (up from INR 164 crores).
• Dividend and Buyback: Announced a 100% dividend and a buyback of INR 325 crores.
Global Rice Market Insights
• Production Trends: Slight decrease in world rice production for 2022-23; expected increase for 2023-24.
• India's Performance: Record rice production and significant rise in Basmati exports (16% volume, 46% value increase in FY23).
• Export Revenue: Increased to INR 540 crores in Q1 FY24 from INR 485 crores in Q1 FY23.
Domestic Market Performance
• Sales Growth: 19% increase in domestic sales (INR 845 crores).
• Branded Basmati Segment: Volume sales up by 9%; market share reached 32.4% in general trade and 41.9% in modern trade.
• Non-Basmati Sales: Surged by 60% to INR 30 crores.
Expansion Plans
• New Plants: Ongoing construction in Gujarat, Karnataka, and Madhya Pradesh.
• Capital Expenditure: Planned spending of INR 200-250 crores funded by internal accruals.
Market Challenges and Strategies
• Export Ban Impact: Primarily affects non-Basmati rice; Basmati exports remain stable.
• Saudi Market: Positive outlook despite distributor changes; new distributor agreement emphasizes no credit and controlled discounts.
• FSSAI Regulations: Expected to enhance consumer trust and favor packaged rice.
Competitive Landscape
• Major Competitors: Identified players like Supple Tek and DD International; KRBL remains the largest branded exporter.
• Market Share Recovery: Positive outlook for regaining market share in Saudi Arabia.
Future Expectations
• Sales Growth Projections: Anticipated 10-15% growth for the financial year.
• New Plant Revenue: Expected contributions from new plants producing both Basmati and non-Basmati rice.
Additional Inquiries
• Product Quality Concerns: Addressed by management; suggested contacting customer care for issues.
• Block Deal Clarifications: Clarified that the company has no role in private transactions between shareholders.
Conclusion
• Call Closure: Management thanked participants; a disclaimer noted potential errors in the transcript and confirmed no unpublished price-sensitive information was discussed.

KRBL Limited Earnings Conference Call Summary (June 6, 2023)
Overview
• Earnings conference call held on May 31, 2023.
• Discussed Q4 and fiscal year results ending March 31, 2023.
• Key personnel: Anoop Kumar Gupta (Joint Managing Director) and Ashish Jain (CFO).
Market Insights
• Global rice production and trade decreased due to export restrictions from India.
• 16% increase in basmati rice exports from India driven by strong demand.
Financial Performance
• Q4 FY2023:
• Total income: INR 1,323 crores (33% YoY increase).
• Domestic revenue: INR 932 crores (38% YoY increase).
• Basmati sales: 43% increase; total sales volume declined by 14%.
• Gross margin: 26.5%; EBITDA margin: 14%; PAT: INR 118 crores.
• Full Year FY2023:
• Total income: INR 5,456 crores (28% increase).
• Record financial performance with significant growth in gross profit, EBITDA, and PAT.
Business Expansion
• New plants planned in Gujarat and Karnataka.
• Unity brand revenue grew by 50% to over INR 750 crores.
• HoReCa segment saw 28% volume growth due to GST rationalization.
Growth Strategies
• Targeting loose basmati rice market.
• New advertising campaign to enhance consumer communication.
• Expanding distribution and launching innovative products (e.g., diabetic-friendly rice).
• New basmati standards by FSSAI expected to improve market integrity.
Margin Analysis
• Lower margins in Q4 due to increased costs of goods sold and a higher share of low-margin sales.
• Average cost of goods sold for basmati rice increased by 24%, realizations rose by 17%.
• Focus on maintaining overall margin of 17-18% for the year.
Export and Revenue Insights
• Export revenues lower in Q4 due to timing differences; recovery expected in Q1.
• Bulk exports generate approximately INR 800-900 crores annually.
• Saudi sales doubled in FY 2023 but have not yet returned to previous highs.
Distribution and Pricing Strategies
• Expanded distribution network to over 750 distributors.
• Aiming to increase retail penetration from 3.3 lakh to 1 million outlets.
• Market-driven pricing approach ensuring 20% margin for retailers.
Conclusion
• Positive long-term outlook despite short-term margin volatility.
• No debt; focus on new plant setups and potential acquisitions.
• Discussions on mark-to-market losses and inventory valuation confirmed no losses as market prices exceed average costs.

Conference Call Overview
• Date: February 6, 2023
• Submitted transcript on February 10, 2023
• Key personnel: Chairman Anil Kumar Mittal, CFO Ashish Jain
• Discussion of unaudited financial results for Q3 and nine months ending December 31, 2022
• Transcript available on the company's website
Indian Rice Industry Insights
• Significant growth in rice exports from April to November 2022
• Basmati exports: 2.73 million metric tons ($2.87 billion), 14% volume increase, 39% value increase
• Non-basmati exports: 11.57 million metric tons ($4.11 billion), 6% volume increase, 5% value increase
• Competitive global pricing despite export bans and duties
• FCI holds 11.54 million metric tons of rice; higher procurement expected
• Price hikes in basmati rice due to crop damage and reduced yields (40% increase)
KRBL's Performance Highlights
• Record quarterly revenue: INR 998 crores (32% year-over-year growth)
• Growth driven by retail and HoReCa segments
• Market share gains in traditional and modern trade channels
• Distribution network expanded by 15%, distributor count increased by 40%
• HoReCa segment contributed 40% to domestic revenue, aiming for 20%-25% market capture
• Strong financial performance: total income up 33% to INR 1,554 crores
Strategic Developments
• New distributor establishment for HoReCa in Saudi Arabia
• Addressing payment issues in Iran
• Focus on increasing branded basmati rice penetration through Unity brand
Q&A Session Highlights
• Impact of rising rice prices on export orders discussed
• New pest-resistant basmati varieties expected to aid market penetration in FY24
• Updates on capital expenditures for new facilities, with production expected in April 2024
• Clarifications on procurement figures and inventory values
• Domestic branded basmati sales up 12%, exports up 41%
• Management reassured on shareholder satisfaction and future profit utilization discussions
Conclusion
• Management expressed confidence in production and export outlook for basmati rice
• Price increases noted to positively impact upcoming financial results