KRBL Limited

Anil Kumar Mittal

CHAIRMAN AND

Anoop Kumar Gupta

JOINT MANAGING

Ayush Gupta

HEAD, DOMESTIC BUSINESS – KRBL LIMITED

Ashish Jain

CHIEF FINANCIAL OFFICER – KRBL LIMITED

rs,

now like to invite Anil ji to share his views. Over to you, sir. Anil Kumar Mittal: Dear Investors, good afternoon. I will start with a brief on the overall current scenario of rice industry. The ri

2.73 million

ti segments. During the period, April to November 2022, we have seen a total basmati exports of 2.73 million metric tons, valued at $2.87 billion as compared to 2.39 million metric tons, valued at $2.06 bil

2.87 billion

il to November 2022, we have seen a total basmati exports of 2.73 million metric tons, valued at $2.87 billion as compared to 2.39 million metric tons, valued at $2.06 billion during the same period last year

2.39 million

seen a total basmati exports of 2.73 million metric tons, valued at $2.87 billion as compared to 2.39 million metric tons, valued at $2.06 billion during the same period last year, thereby witnessing a growt

2.06 billion

million metric tons, valued at $2.87 billion as compared to 2.39 million metric tons, valued at $2.06 billion during the same period last year, thereby witnessing a growth of 14% in volume terms and 39% in v

14%

ic tons, valued at $2.06 billion during the same period last year, thereby witnessing a growth of 14% in volume terms and 39% in value terms. As far as non-basmati exports are concerned, a total qu

39%

billion during the same period last year, thereby witnessing a growth of 14% in volume terms and 39% in value terms. As far as non-basmati exports are concerned, a total quantity of 11.57 million me

11.57 million

terms and 39% in value terms. As far as non-basmati exports are concerned, a total quantity of 11.57 million metric tons were exported during the same period at the value of $4.11 billion as compared to 10.

4.11 billion

total quantity of 11.57 million metric tons were exported during the same period at the value of $4.11 billion as compared to 10.95 million metric tons value at $3.93 billion during last year, witnessing a 6%

10.95 million

ion metric tons were exported during the same period at the value of $4.11 billion as compared to 10.95 million metric tons value at $3.93 billion during last year, witnessing a 6% growth in volume terms and 5

3.93 billion

the same period at the value of $4.11 billion as compared to 10.95 million metric tons value at $3.93 billion during last year, witnessing a 6% growth in volume terms and 5% growth in value terms. As regar

6%

on as compared to 10.95 million metric tons value at $3.93 billion during last year, witnessing a 6% growth in volume terms and 5% growth in value terms. As regard to non-basmati, the ban on expor

“After the opening remarks from the management, the forum will be open for Q&A.”

“The quantity will be far more than the annual buffer requirement of 13.8 million metric tons that FCI is required to maintain.”

“If so, what will be the price impact on basmati rice as such?”

“After Ramadan, I'm quite sure that we will be able to finalize.”

“And normally, in every speech, we say, that it is nothing but a non- tariff barrier for which we accepted the challenges, and we are ready for that, but it will be in FY24.”

“So you would find that number getting capitalized maybe by next quarter.”

“So overall, you can expect this capex to be spread between the next financial year and the following one.”

“So what are your plans to utilize that money from the cash flow that will be generating and how you're going to reward the shareholders?”

Anil Kumar Mittal

11

Amit Doshi

9

Ashish Jain

8

Moderator

7

Anoop Kumar Gupta

7

Soumen Choudhury

6

Himanshu Upadhyay

4

Chetan Doshi

4

Ayush Gupta

3

Anand Venugopal

1

Ashish Jain

Thank you, and welcome to KRBL Limited Q3 FY23 Earnings Conference Call for Analysts and Investors. Along with me on this call today, we have Mr. Anil Kumar Mittal, Chairman and Managing Director, Mr. Anoop Kumar Gupta, Joint Managing Director, and Ayush Gupta, Head of the Domestic business. We will begin with updates from Mr. Mittal with his views on the industry, the business and broad strategy. We shall then have Mr. Ayush Gupta taking us through his perspectives on the domestic business. Thereafter, I will present the financial overview of the company for the quarter and nine months ended December 31, 2022. After the opening remarks from the management, the forum will be open for Q&A. A cautionary note that some of the statements made on the call today could be forward-looking in nature and actual results could vary from these statements. A detailed information in this regard is available in KRBL's investor presentation, which is available on the stock exchanges website and also on

Anil Kumar Mittal

Dear Investors, good afternoon. I will start with a brief on the overall current scenario of rice industry. The rice industry in India has been very bright in both basmati and non-basmati segments. During the period, April to November 2022, we have seen a total basmati exports of 2.73 million metric tons, valued at $2.87 billion as compared to 2.39 million metric tons, valued at $2.06 billion during the same period last year, thereby witnessing a growth of 14% in volume terms and 39% in value terms. As far as non-basmati exports are concerned, a total quantity of 11.57 million metric tons were exported during the same period at the value of $4.11 billion as compared to 10.95 million metric tons value at $3.93 billion during last year, witnessing a 6% growth in volume terms and 5% growth in value terms. As regard to non-basmati, the ban on export of broken rice continues, and there is a 20% duty on export of white rice. Even then, we have seen a remarkable growth in exports, both in val

Ayush Gupta

Thank you, sir, and good afternoon. I will now share an update on the performance of the India business. India business recorded a higher ever quarterly revenue of INR 998 crores during the quarter. This marked the growth of 32% year-over-year. Growth in the quarter came on the back of both retail as well as HoReCa segments. The Consumer Pack segment grew by roughly 9% in volume terms year-over-year, with both the traditional trade and modern trade channels growing well. In traditional trade, KRBL clocked volume market share of 32.4% with a gain of 70 basis points year-over-year. In modern trade, we clocked volume market share of 39.8% with a gain of 360 basis points year-over-year. Besides the strong demand, the growth in Retail segment is an outcome of the input measures that we are driving with rigor month-over-month. One of the strategic pillars of the India business is to drive distribution. Here during the quarter, KRBL has expanded outlet penetration by 15% year-over-year to rea

Ashish Jain

Thanks, Ayush. I will now take you through the performance for the quarter ended December 31, 2022. All figures mentioned by me would refer to the consolidated financials of KRBL Limited. Total income for the quarter stood at INR 1,554 crores, a growth of 33% over the corresponding quarter last year. Gross profit of the company increased by 82%, and EBITDA and profit after tax by 141% and 180%, respectively. The company recorded highest ever domestic revenue and total revenue during the quarter. Revenue from operations grew by 33%, led by both domestic and export sales, which grew by 32% and 38% against Q3 FY22. Domestic sales, excluding power clocked INR 998 crores on account of higher retail volume, higher HoReCa volume post-GST rationalization on bulk tax and higher realization as Ayush just explained. Basmati rice realization increased by 31% over Q3 FY '22. Higher realization was recorded across both domestic and export segments. Gross margin improved to 29.3%, an improvement of 8