KRBL Limited

Anoop Kumar Gupta

JOINT MANAGING

Ayush Gupta

HEAD OF DOMESTIC DIVISION – KRBL LIMITED

Ashish Jain

CHIEF FINANCIAL OFFICER – KRBL LIMITED

rs,

like to invite Anoopji to share his views. Anoop Kumar Gupta: Thank you, Ashish. Dear investors, good afternoon. The world rice production in marketing year FY'23-'24, despite El Nino condition i

518.14 million

The world rice production in marketing year FY'23-'24, despite El Nino condition is estimated at 518.14 million tons, which is higher by 0.87% against previous year. In spite of higher production, global rice

0.87%

ar FY'23-'24, despite El Nino condition is estimated at 518.14 million tons, which is higher by 0.87% against previous year. In spite of higher production, global rice prices continue to be high on a

24%

date report, the FAO or rice price index averaged 138.9 points in October '23, which is higher by 24% than its level a year ago. Just to give perspective, Thailand's 5% local rice is today quoted at

5%

tober '23, which is higher by 24% than its level a year ago. Just to give perspective, Thailand's 5% local rice is today quoted at above $560 per ton, which is up by about $149 per ton from year ago

8%

ars, India's rice production is expected to fall this year. That is July '23 to June '24 by about 8% despite an increase in the area planted mainly due to uneven monsoon. India's rice production in

135.75 million

ted mainly due to uneven monsoon. India's rice production in the crop year '2022-'23 is at around 135.75 million tons. The 20'23-'24 rice production is estimated to drop by 7% to 8% from the previous year.

7%

'2022-'23 is at around 135.75 million tons. The 20'23-'24 rice production is estimated to drop by 7% to 8% from the previous year. The Government of India estimated that '2023 kharif rice

4%

The Government of India estimated that '2023 kharif rice production -- declined by about 4% to 106.3 million tons. The total production estimate will be released in February '2024. Basmati

106.3 million

The Government of India estimated that '2023 kharif rice production -- declined by about 4% to 106.3 million tons. The total production estimate will be released in February '2024. Basmati production for th

14.5 million

be released in February '2024. Basmati production for the year '2023-'24 is expected to be around 14.5 million tons of paddy as per the final satellite mapping report, which is about 8% to 9% higher than over

9%

around 14.5 million tons of paddy as per the final satellite mapping report, which is about 8% to 9% higher than over to last year. Despite the overall increase in rice production in the basmati seg

“It is not known as to when the restriction will be eased out.”

“The total production estimate will be released in February '2024.”

“As I had mentioned in earlier calls, Saudi market is a INR1,000 crores opportunity, of which we hope to attain up to INR700 crores in the first year once both the retail and HoReCa distribution is stabilized.”

“We are trying to find solution and we are confident that we will be able to resolve this issue.”

“As we have shared earlier, Kandla project has already been commissioned and started.”

“For any other clarification or information, we will be happy to discuss and elaborate during the Q&A session.”

“Our strategic pillars are guiding us towards a promising future and we eagerly anticipate to the journey ahead.”

“Even after 3-6 months we go into the market, to achieve INR700 -800 crores will be a cakewalk for us.”

“And in that scenario, what will be our strategy if that happens?”

“So going forward, if the carry forward stock is also there, 7% - 9%, there is no problem.”

Ashish Jain

19

Moderator

9

Anoop Kumar Gupta

9

Himanshu Upadhyay

8

Karan Gupta

3

Subhankar Ojha

3

Sahej Grewal

3

Jaspreet Singh

3

Ayush Gupta

2

Koushik Sekhar

2

Ashish Jain

Hello, everyone. Thank you for joining us. Welcome to the Q2 FY '24 Earnings Conference Call for Analysts and Investors of KRBL Limited. Today, we have Mr. Anoop Kumar Gupta, Joint Managing Director; and Mr. Ayush Gupta, Head of Domestic Division, as key speakers on the call. To kick off the call, Mr. Anoop Kumar Gupta will provide updates on the business, industry and an overall strategy on behalf of Chairman and Managing Director, Anil Kumar Mittal. Following that, Ayush will delve into the perspectives of our domestic business. Finally, I will present the financial overview of the company for the second quarter Q2 and H1 of FY '23-24. Once the management has concluded their opening remarks, we will open the floor for an interactive question-and-answer session. Please note that some of the statements made during the call may contain forward-looking information and actual results may differ from these statements. For more details, you can refer to KRBL's investor presentation, which i

Anoop Kumar Gupta

Thank you, Ashish. Dear investors, good afternoon. The world rice production in marketing year FY'23-'24, despite El Nino condition is estimated at 518.14 million tons, which is higher by 0.87% against previous year. In spite of higher production, global rice prices continue to be high on account of El Nino threat. The situation is further escalated by geopolitical conditions around the world, which have raised food security concern for many rice importing countries. Furthermore, the policy responses by many of the exporting countries, especially India, have not been favorable to the global scenario, which has led to further panic and uncertainty into the global trade. According to the latest FAO Rice Price Update report, the FAO or rice price index averaged 138.9 points in October '23, which is higher by 24% than its level a year ago. Just to give perspective, Thailand's 5% local rice is today quoted at above $560 per ton, which is up by about $149 per ton from year ago. The Governmen

Ayush Gupta

Good afternoon, ladies and gentlemen. It is with great pleasure that I present to you the results of our India business for the second quarter of the fiscal year 2024. Our unwavering commitment to excellence and our strategic acumen have borne fruit, propelling us to new heights in the market. Let us commence with the highlights of our Q2 FY '24 performance, where our revenue, excluding power increased to INR940 crores. This represents a growth of 35% compared to the same period last year, underscoring the strength of our financial performance. In the core facets of our operations, the basmati business registered a strong 26% growth in volume, under which the consumer pack business and bulk pack business experienced noteworthy growth rates of 13% and 52%, respectively. These double-digit growth figures affirm the robust expansion of our brand's retail presence across geographies. Our market share in the traditional trade sector increased to 34.5%, a significant increase of 310 basis po

Ashish Jain

Thank you, Ayush. I will now take you through the performance of the quarter and H1 ended 30th September '23. All figures mentioned by me will refer consolidated financials of KRBL Limited. Total income for the quarter stood at INR1,246 crores, lower by 7% over the corresponding quarter last year. Other income in the quarter increased by 61% on account of mark-to-market investment gains and higher yield on investments. Domestic revenue, excluding power, increased by 35% over the corresponding quarter last year to INR940 crores. Year-on-year basmati sales increased by 35% in the domestic segment, driven by 26% growth in volume, which was at 117,000 MT and 7% growth in basmati realization which was at INR71,400 per ton. On the export side, Q2 revenue of INR235 crores which includes some one-offs declined by 60% over the corresponding quarter. Outlook for this segment has already been covered in comments of Anoop ji. Gross margin in the quarter was 29% and was affected by higher basmati u